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EFSF loans to Greace to increase country’s debt/GDP.

Posted by on Jul 26, 2011 in Economics, General | 0 comments

EFSF loans to Greace to increase country’s debt/GDP.

Greece 5yr CDS is off the highs from last weak and EUR is up significantly over the last few days. Meanwhile calculations based on the complex bail-out plan show that Greek debt/GDP will actually increase after the implementation of the emergency plan. Despite buy-backs at a discount and expected haircuts on principle, it seems that the expenses on credit improvements and recapitalising its banks will outweigh debt cuts. Here is Hugo Dixon from Reuters on the details: To calculate the net...

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Beyond Greece – AAA Europe

Posted by on Jul 25, 2011 in Economics, General | 0 comments

Beyond Greece – AAA Europe

The FT Alphaville team reported on Monday what RBS thinks of the Greek bailout plan in a post that perfectly summarizes the forces in play. In a nutshell – banks want to transfer losses on governments while politicians want to postpone the day of reckoning at least until next elections. Here is what Jacques Cailloux from RBS says: …Indeed, after almost 3 months of negotiations and effort, the Greek debt load will be at best reduced by 10 to 20 percentage points of GDP to what will...

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