After the past week?s ?Greek Drama?, the 117-day and 118 day meeting of eurozone finance ministers of EU finance ministers meeting will usher in more dramatic events?
European Union policy makers will discuss the debt solution stability of European financial instruments (EFSF) expansion, the Greek banking debt write-downs and restructuring and other issues ? but not necessarily able to reach the final plan.
in 1026 on the EU summit, the countries to solve the debt problem in Europe to reach a comprehensive solution, including the expansion of EFSF leverage, Europe and the Greek banks increase 50% debt write-down in three areas.
However, ?the details of the devil?: in the end how the replenishment of the EFSF? How effective EFSF leverage? How will the banking sector funding? More importantly, the Greek private sector bondholders 50 percent of the debt write-down acceptance to what extent? Greece can get relief under a gold? These outstanding issues, each of which may be beating.
first look EFSF. EFSF euro rescue fund has a plan to the ?times? leverage, building a firewall to protect the weaker members of the euro area 17 domestic. According to foreign media reports, EFSF will expand four times base 250 billion ? 275 billion euros, after expanding the scale of 1 trillion euros.
leveraged to expand in Europe for the size of EFSF idea is: First, for those in the primary market to buy euro-zone government bonds provide investors with first loss insurance or insurance. Second, set up a new ?special purpose investment vehicles? (SPIV), the public and private funds together to buy a European market and secondary market debt, in order to attract sufficient foreign exchange reserves, investment in emerging economies.
but details remain to be questionable this week meeting, which is Europe?s ability to attract key investors in emerging markets.
Secondly, in recapitalization of the banking sector, the country has reached 9% capital adequacy ratio of a consensus, the euro zone banks need to reach the 20126 before the new capital adequacy requirements, but need specific details EU finance ministers meeting this week to finalize.
European Investment Bank (EIB) is expected over the next three European banks have ? 2 trillion financing gap, but will not provide any funds to the bank to help it weather the storm. Rating agency Fitch expects the majority of European banks can most of the funds through its own financing or financing on its own way to meet new requirements.
In addition to these two problems, Greece still Europe?s ?big concern.?
in Greece a self ?referendum? a farce, the German Chancellor Angela Merkel and French President Nicolas Sarkozy has made it clear, For them, save the euro is more important than the rescue of Greece.
Although the decision to cancel the referendum, removed a major risk, but not enough to make the first payment of Greece?s international creditors, the sixth round of bailout sum, let alone start the second round of rescue plan and private sector involvement (PSI) part.
in the upcoming meeting of finance ministers, the European core countries, policymakers will reiterate their attitude ? after all Greece must agree to the austerity measures and the new rescue plan involves tightening and make a clear commitment to reform measures.
some of the Greek authorities have a clear head: If this ? 8 billion of relief payments, Greece will be in a few weeks, ?do nothing to boil?, even worse, debt default.
Tags: EU finance ministers Preview: Greece is still a big concern in Europe, European finance ministers, Greece, meetingRelated posts
Source: http://www.forex-news.co/eu-finance-ministers-preview-greece-is-still-a-big-concern-in-europe.html
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