Greece: Two Bail-outs and a Funeral

Posted on July 24, 2011
by Alexander Gloy



Here we go again. Another bail-out. [Sigh.]

I’ll try to make this as entertaining and easily readable as possible – but first the details of the bail-out agreed on July 21st:

* Fresh EUR 109bn EFSF/IMF loans until mid-2014

* Private sector (read: banks) participation of EUR 37bn

* EUR 12.6bn from bond repurchases at below par (100%)

* All EFSF loans extended to 15-30 years with interest rate cut to 3.5% (same relief granted for Portugal and Ireland)

* EFSF re-tooled: flexible credit lines, purchase of bonds in secondary market, recapitalizing banks

* “Marshall Planâ€