Done Deal: Reuters Reports New Greek 3 Year "Adjustment Plan" Has Been Agreed On, Can Kicked For Another 3 Years

Tyler Durden's picture

Just out from Reuters:

  • According to a source, programme will involve new international funding to mid-2014, apportionment yet to be agreed
  • According to a source senior Eurozone officials agree in principle on new 3-year adjustment plan for Greece
  • According to a source private sector will participate in new Greek rescue plan, details still being worked out
  • According to a source, private sector involvement will be limited to avoid a credit event

EUR jumps on the news. Congratulations Europe: you just screwed your taxpayers, but at least bought your insolvent banks 3 more years of bizarro world existence.

From Reuters:

Senior euro zone officials have agreed in principle on a new three-year adjustment program for Greece to run until mid-2014 and involve increased external funding, a source close to the negotiations said on Thursday.

The Economic and Financial
Committee (EFC) of deputy ministers and senior officials of the
17-nation currency zone approved the Greek program in principle in talks
in Vienna that ended after midnight, the source said.

second program for Greece, which will effectively supersede the 110
billion euro ($160 billion) bailout agreed in May 2010, will involve
some participation of private sector investors but limited to avoid
triggering a credit event, the source said.

of that involvement, and the apportionment of the additional official
international funding, remain to be worked out in time for a June 20
meeting of euro zone finance ministers, the source said.

declined to comment on figures but said the program would cover
Greece's funding needs on the assumption that it could not return to
private capital markets in 2011 or 2012. The original bailout envisaged
Athens raising 27 billion euros on the markets next year and 38 billion
in 2012.

Comment viewing options

Select your preferred way to display the comments and click "Save settings" to activate your changes.
oogs66's picture

hmm, is this priced in?  stocks barely budging

Fidel Sarcastro's picture

What?  ES just insta-popped 5.50 handles.

slaughterer's picture

But NFP expectations were already revised yesterday for this explicit purpose.  I am wondering just what planet those guys in "the Pit" are living on.

waylon153's picture

No more private sector involvement?  Is this so ze Germans can have the Parthenon if Greece defaults?  I'd like to repossess the Parthenon.  There would be something supremely ironic about sitting on the steps of that great monument to mankind, sipping a cold beverage......and watching the world burn.  On a completely unrelated note I've just found out through that I'm related to Nero.....

Stuck on Zero's picture

All the governments are happy.  Does that make the people happy?

TruthInSunshine's picture

In reality, or "according to a source?"

I just love "according to a source" planning.

youngman's picture

They will be back in 6 months....wierd how its all good now....I guess they just hired all the protestors as government employees...and Spain sells debt....

Eternal Student's picture

Indeed. Wasn't their deal last year supposed to carry them a few years as well? We all see how well that  turned out.

Next up, Ireland, Portugal and Spain. They are learning how to roll the Banksters.

Quinvarius's picture

And so the eye of Sauron looks for a new thing to destroy.

Probably the USD.

Oh regional Indian's picture

I saw a pretty big sign that August 15th this year was a big Dollar/US down, EU/ECB up day. A tipping point to bigger things but a key FRN marker.

What time, to be witness to such maya, deception of the highest order, hidden in plain sight.


Robslob's picture

Give them time...the market is going to need it when figuring out how to climb without free money...

Corduroy's picture

Not like ZH to proclaim fact on hearsay...

How many times in the last month have we had such a breaking news item only for it to be proven wrong shortly after

I dont belive this for a second... or is ZH the source ?

plocequ1's picture

Ok, There it is. Can we get back to our rally and stop the conservative analysis, Charts  and breaking news? QE is going to occur. Done. move on.

Hansel's picture

From the article:

"agrees in principle"

"details... remain to be worked out"

"declined to comment on figures"

This is an article consisting of nothing.


Corduroy's picture

Yes but it is only from a "source" nobody is named so I dont believe it until I get a name

TruthInSunshine's picture

Saganaki-San is the only reference thus far.

Corduroy's picture

Thought it was Kefalograviera Saganaki .. good call

slaughterer's picture

Bizarro European Zombie Banks, bitchez.  (BEZB)

centerline's picture

Details, details, need details.

The math is so unsustainable that I doubt anything can be kicked that far down the road.  Last time it bought less than 12 months - and turned out to be a joke.  Just like everything else that swinging with shorter and shorter cycles, I give this 6 to 9 months before it implodes again.  That is if the Greek people dont outright burn the place down before then.

Oh, and then there is the rest of the PIIGS that will be next in line.  

StychoKiller's picture

Who keeps buying drinks for these lushes??

Josh Randall's picture

Greek assets will still be served up on a platter in backdoor deals to international investors, just at not all at once now to shock anyone

jmac2013's picture

This would be my speculation too.  Perhaps the private participation revolves around Greek assets as collateral in case Greece fails to live up to certain conditions, a way of legalizing theft of Greece property and assets.  We'll see but this is my suspicion. 

Josh Randall's picture

That approach coupled with quiet Gold shipmets being sent to the vampires, will be the quiet looting that takes place if this report does in fact appear to be the case

PaperBear's picture

ah so the looting will soon begin.

6 String's picture

And scene: stocks headed higher. Jesus. What a Circus Show.

Translational Lift's picture

Was there ever any doubt that this would happen??

max2205's picture

GS can now up there SPX forecast to 1600...yeah baby

Seasmoke's picture

you cannot ever kill Zombies

Translational Lift's picture

Yea....but it would be fun watching them burn at the stake!!

PaperBear's picture

Any selling of real assets for 20% fair value ?

Mr. Poon's picture

Quick question, how many times have we heard about an "agreement being reached" among "senior officials", only to have German or Finnish officials express surprise at being told of it, and declaring in fairly clear terms that they are not on board?

slaughterer's picture

The program has to be passed in Greek congress.  No sweat.  / sarc

Problem Is's picture

Answer: Infinitely many times...

x -> BS, as n -> infinity...

The Fonz's picture

If greece is brains and the banks are zombies I'd say starvation is imminent.

ebworthen's picture


So the five year deal of last year is now a three year deal with "details to be worked out" like the details of last year's deal that were not yet worked out and scheduled payments that were not made or delayed so that now we have a new schedule of payments delayed that will be delayed and "worked out" with "assurances" while the money still flows from the IMF via taxpayers worldwide instead of from the banks and governments that gambled and gamboled their way into this manure pit?


A_MacLaren's picture

And cut to Talking Head Spin on Debt Limit and Budget Deficit in 3, 2, 1...

A_MacLaren's picture

Ding, Ding, Ding - Winner

Moody's says if is no progress on increasing debt limit in coming weeks, it expects to place US rating under review for downgrade

oogs66's picture

unless this involves real debt forgiveness and significant maturity extensions and dropping criteria for any additional money it will largely be a 'yawn' for the market

slaughterer's picture

Better yet, it involves tax reform in Greece.  No talk of enforcement however.  Hum... 

Overflow-admin's picture

How are they going to implement that program? I bet on more riots soon.

slaughterer's picture

I can see an army of German tax accountants from the Finanzamt moving to Greece and ads for European rent-a-thugs appearing on Monster soon: "No Greek language ability necessary, just good door breaking technique and the ability to use a work in association with our new European collect-taxes-from-the-unwilling-Greeks office"

The Axe's picture

Tune into into your nearest riot channel

mayhem_korner's picture

DXY should take a shot to the jowls.  Makes the QE3 skid-greasing effort a little dicier...


scratch_and_sniff's picture

You short the Euro, and you short political stupidity. Can kicked, Ireland & Portugal up next.