Monastiraki Square
LIVECAM | Syntagma | Ermou Street | Palaiokastritsa Beach | Live Cam List

February 1, 2012

The scramble for a solution

The Papademos government is juggling dual-talks with bond-holders and public creditors with the March tranche payment hanging in the balance. There is a €14.4 billion bond payment due in March, and without the funds available there would likely be a quick bankruptcy, default, and Greek exit from the eurozone. All parties are saying they do not want this calamity to occur, the ramifications being unpredictable and setting a precedent that might be followed by other heavily-debted EU countries. The scramble for a solution that fits all parties; the European banks, the political leadership, Greek public opinion and all the creditors big and small seems like a near impossible task. Only the fear of what follows bankruptcy seems to be keeping all heads returning to the negotiation tables.

"...creditors have said they would be willing to accept a loss of 70 percent on their new bonds, Greece and its backers have been pushing for more by demanding that these securities carry an interest rate below 3.5 percent.

Greece is effectively bankrupt, staggering under a debt load that the I.M.F. now estimates as equal to about 160 percent of its gross product." New York Times

Update: Febraury 7, 2012 - Papdemos scrambles for solution in Germany

More about the Troika in Greece:

The June 2011 Troika Loan Plan

"Midterm" Troika plan passes Greek Parliament - June 2011

Troika primary requirement: Reduce the size of the Greek state - Sept 2011

Questions about Troika Powers in Greece - June 2011

ePocket Guide Athens Greece

Lonely Planet Pocket Athens (Travel Guide)

Home | Information | Resources | Archive | Photos | Book Shop | Contact | Copyright | SITE MAP