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[SuperCycleBear]

Greek Deja Vu All Over Again

As another Greek debt resolution rolls around, the euro/US dollar exchange rate is fluctuating in-sync with the rise and fall in sentiment surrounding the talks.

http://www.alankohler.com.au/

[qqqbear]

Greece inside the pinata for European bankers and ministers
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Greece

Greece rushes to meet lender demands

The Greek government rushed today to wring out another 325m euros in budget cuts to satisfy euro zone finance ministers mulling whether to sign off on a rescue package to save the country from a chaotic default. Squeezed between sceptical European capitals and deep anger in Greece, political leaders must also produce written commitments to stick to the terms of the 130b euro ($172b) bailout before the ministers meet today.

A government official said the cabinet had already a proposal on the table and that Prime Minister Lucas Papademos would chair a session of the government at 3 p.m. (1300 GMT) A second government source said: "The government will have a solution before the Eurogroup". But the bill left unexplained 325m euros of cuts that the EU and IMF now want clarified before they sign off on the bailout. (Reuters)

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Greek Premier to Discuss Prior Actions for Bailout at Cabinet

Greek Prime Minister Lucas Papademos will hold a meeting of his Cabinet at 3 p.m. Athens time today, according to a phone-text message from his office. The Cabinet will discuss prior actions needed to qualify for a second international bailout as well as legislation allowing armed guards to be posted on commercial vessels, according to a separate email. (Bloomberg)


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Greece's economy shrinks by 7%

Greece's recession worsened at the end of last year, new figures showed today, adding to the pressure on a government caught between riots at home and pressure from eurozone leaders. The economy contracted by 7% in three months to December compared with the same period in the previous year, a steeper decline than the 5% recorded in the third quarter, according to preliminary data published by Elstat, the national statistics body. (FT)

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INTERVIEW: OECD's Gurria: Now Right Time To Close A Greek PSI Deal

Private creditors should strike a deal now over the restructuring of Greek debt and the ECB should contribute to the package, the head of the Organization for Economic Cooperation and Development said today. Angel Gurria, secretary-general of the OECD, told Dow Jones Newswires that Greece should not let itself be blackmailed by private creditors and should send a signal that it would be worse for them if they didn't accept the deal. Greece is in talks with private creditors for a EUR100b voluntary debt write down of its total EUR350b in debt, with a successful outcome of the talks preconditions for the second bailout program from official lenders. (DJ)

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​Europe Now Better Prepared Should Greece Default, Schaeuble Says

German Finance Minister Wolfgang Schaeuble said Europe is better prepared for a Greek default than two years ago, jacking up pressure on Greece to hold to its pledges and find the savings needed to win a second bailout. Euro-area finance ministers are due to convene in Brussels tomorrow for their second extraordinary meeting in a week after telling Greek officials to identify additional cuts of 325m euros ($428m). The measures are among the conditions that must be met by tomorrow for Greece to secure a 130b-euro rescue needed to avert financial collapse. (Bloomberg)

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Luxembourg Finance Minister: Greek Euro Zone Exit Possible

Luxembourg Finance Minister Luc Frieden said yesterday he couldn't rule out Greece exiting the euro zone, adding that while he wouldn't prefer it, a Greek default would give the debt-beleaguered country a "new start." Frieden said if Athens fails to fully comply with the terms of its bailout programs, it would exclude itself from the currency union. "The key lies with Greece. Therefore, if the Greek people and the Greek political elite don't apply all the conditions...they exclude themselves from the euro zone," Frieden said, speaking at an Atlantic Council event in Washington after talks with senior U.S. Treasury officials. (DJ)

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See also: Greece's Euro Exit Less Damaging Now Than In 2011 - Polish Finance Minister (DJ)

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Eurozone: Greece must stick to debt deal for aid

The eurozone insists Greece must stick to hugely unpopular austerity measures agreed in return for EU-IMF debt bailout, with no wriggle room allowed at talks tomorrow on nailing down its commitments. Eurogroup finance ministers meet after another shot across the bows from Moody's which yesterday downgraded its ratings on Italy, Spain and Portugal, and as EU president Herman Van Rompuy visits a China worried by events in its biggest export market. (AFP)
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See also: Austria's Fekter upbeat on Greek aid prospects (Reuters)
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ECB's Greek profit could ease debt burden-Coeure

The ECB's profits from Greek bonds could be used to help restructure Greece's debt, Executive Board member Benoit Coeure said, spelling out how the ECB's funds could play a role in Athens' debt deal. ECB President Mario Draghi sketched out the plans last week, but Coeure's comments are the clearest signal so far. "Should there be a profit (on Greek bonds), like all monetary revenues, it is to be distributed to the (member) states," Coeure said in an interview with French daily Liberation published today. (Reuters)

(IMF)