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Greece Forced To Borrow More From Markets

Another delay to the next tranche of aid for Greece forces the country to go cap in hand to the markets for money.

11:06am Tuesday 13 November 2012

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Debt-laden Greece has been forced to tap the financial markets further to avoid bankruptcy after Eurozone finance ministers delayed a crucial aid payment.

The country, which faced a bond repayment on Friday it could not afford, was banking on Eurozone finance ministers releasing a long-delayed 31 billions euros (£23.5bn) to meet the bill.

But at a meeting on Monday night the ministers said they would have to gather again on November 20 to make a decision because there was still work to do on finalising the details of the bailout.

Eurogroup head Jean-Claude Juncker said Greece had made progress on its commitments to reduce debt and the public deficit - and insisted there would be no problem for Athens in rolling over the debt.

He said: "I will do all I can to make sure that a decision is taken on November 20. I won't tell you how but there won't be a problem on November 16 (Friday)."

European Economic Affairs Commissioner Olli Rehn explained that Greek banks would be able to take part in a government sale of treasury bills, providing the money Athens needs to cover the debt repayment.

That was completed on Tuesday morning when it raised 2.762.5 billion euros in one-month Treasury bills at an interest rate of 3.95% and a further 1.3 billion euros in three-month bills at 4.2%.

If Athens had been disappointed by the further delay to its bailout funds, a proposal to extend its debt reduction deadline by two years to 2016 was accepted despite strong reservations about the sustainability of Greek debt raised by the head of the International Monetary Fund (IMF), Christine Lagarde.

The IMF, which makes up the so-called Trioka of international lenders to Greece along with the European Central Bank (ECB) and European Commission, is worried about the extra cost the extension would impose.

A draft report by the Troika on Greek austerity efforts, seen on Monday, put the additional cost at nearly 33 billion euros (£26.3bn), with the bill rising as the economic outlook darkens.

Greece's debt mountain - now nearly 190% of GDP - is supposed to come down to 120% by 2020 and Madame Lagarde insisted that target be maintained though Mr Juncker believes it should also be extended by two years.

The 17 eurozone finance ministers have joined their 10 non-euro colleagues today for another meeting, expected to focus on how to boost the slumping economy and the bloc's hotly contested 2014-20 budget.

http://news.sky.com/story/1010704/greece-forced-to-borrow-more-from-markets


Added: Nov-13-2012 Occurred On: Nov-13-2012
By: gemini
In:
Regional News
Tags: debt, bailout
Location: Greece (load item map)
Views: 996 | Comments: 44 | Votes: 0 | Favorites: 0 | Shared: 0 | Updates: 0 | Times used in channels: 2
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  • It amazes me that the left does not see this as our future.

    Just because you bury your head in the sand, does not mean the tide ain't coming in..

    Posted Nov-13-2012 By 

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  • Not good. The EU is a dyeing duck anyway.

    Posted Nov-13-2012 By 

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  • I spoke to a friend the other day, who explained to me what his mother and father have done over the last 10-15 years. I was amazed by what was explained to me.

    The father had been working for the public service for a little over 35 years, and the mother for about 30 years. The father retired on about 80% of his basic salary and the mother about 65% or 70%. This is the amount they get paid every year by the Government for doing nothing.

    Both admitted to doing nothing at work for about 10 yea More..

    Posted Nov-13-2012 By 

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  • Hey Europe, how's that socialism working out for ya?

    Posted Nov-13-2012 By 

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  • NO one force Greece to do anything,they are their own worst enemy.If its wasnt for Germany Greece be bankrupt.

    Posted Nov-13-2012 By 

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  • at this rate naughty greek kids will be recieving euros for christmas as opposed to expensive lumps of coal

    Posted Nov-13-2012 By 

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  • Well I must be a prophet.........Told you so is not big enough here. It's all coming to an end real soon. Bye Bye America......hello North American Union. Mexico, Canada and the US .....one happy threesome. Immigration law? who needs it......we got a new currency coming back by 3 countries now....and hello Global Currency and goodbye liberty.....on bank....owns the world.

    hahaha Forced to borrow more money.....ahahahaahahaaa hahahaa. Guys....wake up! There is no forcing going on here.

    Posted Nov-13-2012 By 

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  • BANKRUPT THE EARTH!

    You all realize this has been planned for a long time... right?

    It's not going to stop, till everyone is broke.

    Posted Nov-13-2012 By 

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  • Obama is meeting with fellow Communists today to speed up the bankruptcy of America.

    Posted Nov-13-2012 By 

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  • What does Greece produce as a country? Tourism? Nobody works there it seems...small wonder they are F'd up.

    Posted Nov-13-2012 By 

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  • I never looked in detail how some of the EU countries manage to continually screw themselves. I know my experience with my companies in the UK which has a poor economy is that I only take my profits and invest them in myself. Factoring in 30-60 day cash flows, I essentially run at zero debt as I don't borrow from anyone. It limits how much I can expand but it also ensures that I'm always in the black.

    I don't know what these idiots do: probably run things based on P&L's instead of cash flow More..

    Posted Nov-13-2012 By 

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  • They mean dollar made of air by the federal banking maffia.

    Posted Nov-13-2012 By 

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  • make them start over financially, bailouts obviously arent working

    Posted Nov-13-2012 By 

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  • nice post gemini

    Posted Nov-14-2012 By 

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  • im right now in athens (varkiza) and greeks are the laziest people i have ever seen, they come like 2 hours to late to work, they even say themself that they hate work...their woman are also damn hairy...

    so happy friday im back in israel....

    Posted Nov-13-2012 By 

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  • Humm could it be that 1000s of irac and afagans and nigerias are sitting in there yards waiting to jump a boat to the Uk , really they need another border beyond there front yard . very say indeed

    Posted Nov-13-2012 By 

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  • They lied to get in the Euro, they put the guy that lied running the thing. WTF "Let them go bankrupt and start over"...Mittens.

    Posted Nov-13-2012 By 

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  • If any states left the Union, this is exactly what they can look forward to.

    Posted Nov-13-2012 By 

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    • @Blklight

      What the fuck are you talking about? The US federal government can't keep a cap on its runaway spending either.

      Posted Nov-13-2012 By 

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    • @WolfBite120

      This is true. But we haven't reached the stage of Greece. Yet. And I hope we never do either which is why I don't support starting any more wars or giving tax breaks to super rich people and corporations.

      Posted Nov-13-2012 By 

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