The Greek government announced that the take-up of its bond exchange offer was in excess of 80%. This could rise further if the Greek government imposes the offer on those that did not accept.
At time of writing, some issues are still pending as to whether the credit default swaps (that is, insurance in case of default) will be triggered or not.
As a result of the debt reduction and the implementation of severe austerity measures, Greece will receive a $130 billion bail-out package. The resolution of the Greek crisis is a key element in the EU’s efforts to bring to an end the turmoil that has hit the EU and its banks for the past three years.
Meanwhile, as expected, the European Central Bank (ECB) left its benchmark rate at a record low of 1%. However, with EU inflation in excess of its target of 2%, the ECB has limited ability to reduce rates further, even as economic growth prospects grow dimmer.
Meanwhile, the Bank of England’s monetary policy committee held its benchmark interest rate at a record low of 0.5%.
The committee also retained its bond-purchase target at £325 billion after raising it by £50bn last month. This month is the third anniversary of the central bank’s bond purchasing programme, which is aimed at stimulating economic growth.
In the US, the Bloomberg Consumer Comfort index rose to -36.7 in the period ended March 4, up from -38.8 in the prior week, taking this measure of consumer confidence to a four-year high.
This positive data came in as more Americans perceived economic improvement and opted that it is time to shop.
Stronger household balance sheets, a resilient jobs market and a buoyant stock market may be helping Americans ease the reduction in purchasing power resulting from the high fuel prices.
This article was compiled by Bank of Valletta for general information purposes only.