Eurozone and ECB remain at loggerheads on Greek bailout

Eurozone and ECB remain at loggerheads on Greek bailout

Eurozone finance ministers were locked in crisis talks Tuesday in an attempt to address criticism from the European Central Bank (ECB) over plans to make private lenders contribute to a second rescue package for Greece, dpa reported

Ministers will "run through all the options today," Luxembourg's Prime Minister Jean-Claude Juncker said before the meeting, speaking as the president of the Eurogroup, the panel of eurozone finance ministers.

Under pressure from bailout-weary voters, Northern European countries like Germany and Finland have insisted that private lenders should pay for some of the cost of any new loan for Greece, which is again on the brink of bankruptcy.

"Some sort of private sector involvement is crucial in this very moment," Finnish Prime Minister-designate Jyrki Katainen said in Brussels.

But ECB officials insist any private contribution has to be truly "voluntary," warning against forcing even a partial default on Greek debt and threatening to withdraw support for Greek private banks if politicians decline to heed their warnings.

Italian central banker and ECB President-designate Mario Draghi told a European Parliament confirmation hearing that he shares the ECB's position of not being "in favour of restructuring or haircuts."

Haircuts can be seen as a form of partial default, as they involve a reduced or deferred repayment on maturing bonds. EU officials have talked of the so-called "Vienna Initiative" as a compromise solution that would address the ECB's concerns.

The 2009 plan saw Western European banks agree voluntarily to continue funding their subsidiaries in Eastern Europe. In Greece's case, it would mean that they would refrain from cashing in on maturing bonds, instead accepting new sovereign debt issuances.

"We have to convince the banks, the pension funds and the insurance companies to ... keep financing Greece," Belgium's acting Finance Minister Didier Reynders said.

"The financial sector has all the interest to see the eurozone overcoming this situation without too much difficulty," Reynders said, when questioned why private lenders should accept calls to keep their purses open.

German Finance Minister Wolfgang Schaeuble, who last week suggested the alternative of making banks accept an extension of debt repayments on their Greek bonds, said the "details" of private sector involvement still needed to be worked out.

Greece is thought to need an extra 80-120 billion euros to keep it solvent beyond 2012, on top of the 110-billion-euro (159-billion-dollar), three-year loan it received last year from the European Union and the International Monetary Fund (IMF).

In return for the money, the Greek government has committed to another round of radical budget trimming, including accelerating a 50-billion-euro privatization plan.

The debt rescheduling agreement with the private sector could cover around one quarter of the money required for the new Greek aid plan. The EU would finance two thirds of the remaining amount, leaving the IMF to provide the rest.

The IMF has insisted on a deal being found on the new Greek loans as a precondition for continuing to fund the existing bailout package for the country, which should see it receive a 12-billion-euro payment next month to avoid default.

Juncker, indicating that no decision was expected Tuesday, said the aim of the Brussels talks was to get "as close as possible to a deal," which should be secured at the Eurogroup's next meeting in Luxembourg, on June 20

Subscribe to Trend in Google News! Subscribe
TBC Bank to financially support Georgian farmers
TBC Bank to financially support Georgian farmers
IMIDRO reveals data on iron ore concentrate production in Iran
IMIDRO reveals data on iron ore concentrate production in Iran
Iron ore concentrate production by giant Iranian companies up
Iron ore concentrate production by giant Iranian companies up
Loading Bars
Latest
India rejects net zero carbon emissions target, says pathway more important
Australia eases COVID-19 travel advisory ahead of border reopening
Barcelona sack coach Koeman after loss to Rayo Vallecano
US, Turkey hold new talks to 'resolve F-35 dispute'
EU top court fines Poland 1 mln euros per day amid legal row
Turkey reports 26,896 daily COVID-19 cases
US tells Iran ‘window will not remain open forever’ to revive nuclear deal
Portugal's parliament rejects budget, snap election looms in 2022
Better future awaits Karabakh Armenians as citizens of Azerbaijan after opening of Fuzuli Int'l Airport - Russian expert
Chronicles of Victory: President Ilham Aliyev interviewed by Russian Interfax agency on October 28, 2020 (PHOTO/VIDEO)
Chronicles of Victory: October 28, 2020
Blinken says he ordered reviews of State Dept's evacuation efforts out of Afghanistan
Moderna COVID shot could be used in U.S. children, teens within weeks
London launches Europe's biggest scheme to drive polluting vehicles off roads
14th batch of Sputnik V vaccines delivered to Iran Embassy in Moscow
Tariffs for renewable energy drop in Kazakhstan
GD leaders address supporters, promise Georgia's development
Opening of Fuzuli Int'l Airport landmark event for Azerbaijan and dev't of region- Russian expert
Japanese Noritsuisu Co. Ltd preparing to launch new project in Uzbekistan
Kazakhstan’s mining company opens tender on spare parts for truck
Uzbekistan to build its first digital control system substation
Turkey unveils its economy sectors attracting foreign investors
Azerbaijan reveals TOP-10 banks in terms of income for 3Q2021
Azerbaijan’s TOP-10 banks in expenditures terms for 3Q2021 revealed
TBC Bank to financially support Georgian farmers
Kazakhstan draws up national project for energy complex dev’t by 2025
Kazakhstan discloses deterioration degree of local power grids
Cairo-Moscow flight returns to airport due to suspicious message in cabin
Norwegian Air to lease 13 Boeing planes
McDonald's sales soar on higher prices, newer menu items
Iran supports development of constructive relations with Azerbaijan - FM
Iran’s PMO declares volume of essential products available in ports
TOP-10 Azerbaijani banks in terms of net profit for 3Q2021
Azerbaijan inks new deals with several states on investment in its Alat FEZ - ministry
Kazakhstan increases mobile internet speed in September
IMIDRO reveals data on iron ore concentrate production in Iran
Renaissance Capital forecasts inflation in Georgia to slow down
Azerbaijan talks possible vaccination of adolescents prone to catching COVID-19
Kazakhstan considering introducing carbon tax
India, Kyrgyzstan hold first strategic dialogue, discuss Afghanistan
Uzbekistan Railways modernizing railway carriages to increase passenger traffic
Japanese TEPCO plans to continue investment in Georgia's energy sector
Iran’s Bahar Azadi gold coin price rebounds
Iran`s TEDPIX on the rise after week of decline
Teva Pharm Q3 profit misses estimates, to sell $4 bln in bonds
OPEC ready to strengthen co-op with Turkmenistan
Kazakh Energy Ministry working on building nuclear power plant
Uzbek Ministry of Finance to cancel fees for purchase of used cars in 2022
Indian Railways changes policy, PSUs to now compete in open market for tenders
Turkey's leather exports to Iran up in value for 9M2021
Azerbaijan confirms 2,300 more COVID-19 cases, 1,248 recoveries
Azerbaijan shares data on number of vaccinated citizens
Georgia and Spain eye to launch direct flights between capitals
Azerbaijan, WB ink new loan agreement
Iron ore concentrate production by giant Iranian companies up
Turkmenistan starts experimental growth of papaya in Mary region
IMF revising India's growth forecast is 'gross under estimation': N K Singh
Turkish KOSGEB talks interest in implementing projects in Azerbaijan's Karabakh
Decarbonization of economy to transform Kazakhstan’s fuel and energy complex – minister
Kazakhstan's trade indicators with EAEU member states for 8M2021 unveiled
Kazakhstan records decrease in renewable energy tariffs
Bank Keshavarzi Iran provides loans for construction of greenhouses
State Grain Fund of Azerbaijan transferred to jurisdiction of State Reserves Agency
Azerbaijani President Ilham Aliyev congratulates President of Czech Republic
Iran resumes rice imports
Israel government foreign currency bonds to trade on Tel Aviv bourse
Putin, Finnish president to discuss bilateral cooperation, global issues — Kremlin
Uber partners with Hertz to offer 50,000 Tesla rentals to U.S. ride-hail drivers
Turkmenistan and Iran to expand trade ties
Equinor slightly reduces equity production of liquids and gas
Nar upgrades another sale and service center (PHOTO)
Achieving carbon neutrality in Kazakhstan requires big investments - minister
Amount of loans issued by Bank Keshavarzi Iran increasing
Azerbaijan’s liberated lands to soon become example of modern production for entire region – Erdogan
Iran reveals COVID-19 data for October 27
Equinor expects 2% increase in 2021 liquids and gas production
Iran, Uzbekistan seek to boost ties both regionally and internationally
Iran`s Raisi reaffirms will to boost ties with Turkmenistan
AIIB helps strengthen healthcare infrastructure in India
Turkmenistan, Iran discuss issues on boosting transport communication
Turkmenistan, Iran interested in intensifying contacts in regional, int’l structures
Kazakhstan, Kyrgyzstan consider resumption of passenger rail transport
Amount of addressed state social benefits proposed to raise in Azerbaijan
Iran determined to pay off gas debt to Turkmenistan – Iranian minister
2nd ICD – CIBAFI Webinar Discussed the Emergence of Cryptocurrencies and its Potential for the Growth of Islamic Finance Industry
Georgia, Poland to co-op in railway sector under EU-funded project
Kazakh gold extracting venture opens tender to buy spares
Equinor’s non-current assets drop in Azerbaijan
Saudi Arabia licenses 44 companies to open regional headquarters in Riyadh
Central Bank of Iran unveils details of oil exports
Reps of Turkish National Defense University visit Azerbaijani military educational institutions (PHOTO)
Azerbaijan may increase need criterion next year
India among top 10 in the world for cliate technology investments: report
Turkmenistan launches production of filament lamps
Azerbaijan to increase budget financing of healthсare sector in 2022
Turkmenbashi complex of oil refineries open tender for construction of hydrogen production unit
Equinor reduces liquids output from Azeri-Chirag-Gunashli
Activity of most filling stations in Iran resumed
Turkmenistan increases imports of Turkish leather goods
Turkey discloses cargo traffic via local ports from US in 9M2021
All news