Do the Greeks and the Eurogroup have a real deal or is the Greek debt pay/default decision just being kicked out another four months? Business Insider's Top headline: Greece and Europe have a deal. Zero Hedge argues that the can is being kicked.
From BI: "According to Reuters, the deal provides a breathing space for the new leftist-led Athens government to try to negotiate longer-term debt relief with its official creditors." Sounds like a deal to move the deadline for a real deal out into the future. Starting Monday. "Greece has agreed to present a list of reform measures on Monday."
From ZH: "Bottom line: Greece caves on pretty much everything, however it has two semantics successes: the dreaded “Troika” words has been replaced with “institutions” and “current programme” has been changed to “current arrangement” – surely nobody will notice. Sarcasm aside, Greece has just kicked the can for four months. Why four months? Because that’s just ahead of the big Greek debt maturity."
The 330 Billion Reasons Why The Grexit "Can" Was Kicked Down The Road
Courtesy of ZeroHedge
Perhaps this explained why Greece and The Eurogroup have (reportedly) come to an agreement to avoid an actual Grexit for 4 months. As Die Welt explains that Euro-area nations will face losses of up to EUR330bn as Greek outright government debt, ECB capital needs, and TARGET2 liabilities have soared in the last 2 years since the crisis last erupted…
While for Greece stakes are high, so does the euro partners have set in the case of a Grexit losses. Grexit is in the capital markets become naturalized name for a Greek euro exit.
All euro countries in Hellas on the various rescue vehicle loans and the ECB, the euro system some 330 billion euros in the fire. This represents about 3.4 percent of economic output in the euro zone. Since the year 2012, the Athens liabilities have increased by 40 billion euros, as the British bank Barclays has calculated.
"What have since the euro countries in the fire, can not be ignored entirely," says Thomas Harjes, a strategist at Barclays. He holds the volume nevertheless manageable, as most Greek debt securities are no longer as from private sources, but the public sector, ie states and their institutions.
[Note: this article was translated from German to English, imperfectly. It’s hard to read. ~ Ilene]
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So – if this reported 4-month can-kick is 'real – The Eurogroup has that much time to 'manage' this exposure before the Syriza-voting members of the Greek public turn to the only anti-EU partyt left – Golden Dawn… and Podemos elections begin in Spain…
