By TraderVox.com
Tradervox.com (Dublin) – The euro-zone finance ministers are expected to convene today where they are projected to discuss the Greece bailout plan which has left them split on the way forward. They will be discussing whether the country requires another debt write-down as political leaders in Greece squabble over the consequence of further austerity measures. The finance leaders will be seeking ways to Greece in the euro as it a faces an exit which is projected to cost several hundred billion euros according to Josef Ackerman, the Deutsche Bank Chief Executive Officer. The finance ministers will be holding a conference call at 1230hrs Brussels time and a statement is expected thereafter.
The market is watching with interest the developments in Europe as the leaders grapple with ways to fill Greece financing gap. The decision on whether to give the country another round of emergency funds to finance its debts will be made in two weeks time. However, the optimism and support gained from German Chancellor Angela Merkel will go a long way in securing the fund. However, Greek Prime Minister Antonis Samaras’ coalition government has not agreed on the steps needed to secure more funding. Carsen Brzeski, a Brussels-based senior economist at ING Group, has noted that the euro-area finance ministers will be hoping to agree on the way forward and may decide to give Greece more time to adjust. He added that the decisive phase for Greece has started.
Policy makers will be tasked with the responsibility of devising a plan that will reduce Greek debt to 120 percent of gross domestic product in eight years from the current 144 percent. If they fail to agree on the way forward, there will be another wave of speculation about Greece exit, which would be sparked in event the IMF withdraws its funding. The discussion surrounding the Greek debt crisis has left Greek financial institutions with no other option but to agree to the biggest restructuring in history. Christine Lagarde, the IMF Managing Director said that Greece will require another debt cut. However, Angela Merkel has insisted that on an ECB proposal for a buyback of Greek debt.
Disclaimer
Tradervox.com is not giving advice nor is qualified or licensed to provide financial advice. You must seek guidance from your personal advisors before acting on this information. While we try to ensure that all of the information provided on this website is kept up-to-date and accurate we accept no responsibility for any use made of the information provided. Opinions expressed at Tradervox.com are those of the individual authors and do not necessarily represent the opinion of Tradervox.com or its management.
Article provided by TraderVox.com
Tradervox.com is a Forex News Portal that provides real-time news and analysis relating to the Currency Markets.
News and analysis are produced throughout the day by our in-house staff.
Follow us on twitter: www.twitter.com/tradervox
