New Greek Bailout Inching Closer to Fruition
byNov 23rd 2012 7:06AM
The latest rumors about Greece's bailout suggest that a deal will be done soon. Only last week, battles among Germany, most European Union finance ministers and the International Monetary Fund made a compromise unlikely. Germany refused to force bond holders to take another write-down in addition to the one they took months ago. The IMF wanted more liberal terms for Greece to get is budget house in order. Greece has made the requested austerity cuts, but its economy was falling apart too quickly. According to Reuters:
International lenders have agreed new steps to cut Greece's debt pile further but it still has to fill a 10 billion euro ($13 billion) gap to gain the IMF's approval for its next tranche of aid, a senior Greek government official said on Friday.
The International Monetary Fund has agreed to deem the country's debt viable if it falls to 124 percent of GDP in 2020, giving ground on its earlier target of 120 percent, the official said on condition of anonymity.
Douglas A. McIntyre
Filed under: 24/7 Wall St. Wire, International Markets