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Handelsblatt Reports Second Greek Bailout Package To Be Delayed

Tyler Durden's picture




 


It seems that Europe once again shot its last bullet a few days too early (to use a more polite phrasing than the alternative) with the announcement from last week that the Greek bailout was a done deal. As we speculated, various complications will soon emerge for anyone who cares to read the fine print in the bond indentures which preclude the imposition of Collective Action Clauses, thereby making an enforcement of a "voluntary" maturity extension problematic if anything. Below we present an article that appeared in Handelsblatt in the last hour, which indicates that opposition to the rescue has emerged not only from Slovakia, but from the UK as well. The English is about as garbled as possible thanks to Google translate, but oddly enough far more understandable than the periodic soundbites of outright lies from the pathological troica of Rehn-Junker-Trichet.

From Handeslblatt (which still has to apologize for fooling millions into buying Greek bonds a year ago).

The Government of the Euro zone is likely to decide later than planned on the second aid package for Greece.There were so many unresolved problems that the finance ministers of the new loan package is expected but not yet on 20 could decide to June, said a senior EU official to the Handelsblatt.

Sun push the planned financing of the new loan package from the euro rescue fund EFSF unexpectedly big difficulties in the Euro-state, Slovakia. The country is not in the ongoing bilateral loans to the euro zone for Greece in the amount of 110 billion euros involved.

If the new loan program will be transferred to EFSF, Slovakia would continue it. Therefore refuse to run the government in Bratislava, loans for Greece over the EFSF leave. Germany is in turn seek to build on the EFSF for it. For then would the federal government the delicate vote in parliament over the next aid package to save Greece.

Resistance is also available from the UK. The new loan package is intended to be financed solely from the euro rescue fund EFSF. The remaining amount of eleven billion Euro in EFSM-fund of the EU Commission are to be mobilized. EFSM for the fund, all 27 EU countries now, including countries outside the euro zone as Great Britain.

The government in London wants the EFSM-pot but do not empty for Greece. The end of June pending credit tranche for Greece will be paid even if the new aid package for Hellas then not get up, it said in Brussels.

The IMF is now willing to pay its share in the amount of 3.3 billion € in any case. Only prerequisite is that the government and Parliament in Athens, the promised additional austerity measures and privatizations decide as agreed.

In the German Bundestag, the opposition is growing: SPD parliamentary leader Frank-Walter Steinmeier, Chancellor Angela Merkel (CDU) has been invited to make this Friday a government declaration on the further support of Greece and the euro in the Bundestag.

He hoped that the coalition knows that they need this package for a majority, Steinmeier said on Monday in front of a SPD party meeting in Berlin. The looming considerable resistance in the Union tends to suggest that many are apparently no longer prepared to support the need of European solidarity.

 

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Mon, 06/06/2011 - 16:28 | 1344341 jus_lite_reading
jus_lite_reading's picture

Is there any integrity in the EU?

Mon, 06/06/2011 - 16:37 | 1344383 duncecap rack
duncecap rack's picture

Sometimes it is necessary to lie to achieve important objectives apparently.

Mon, 06/06/2011 - 16:29 | 1344356 williambanzai7
williambanzai7's picture

How many Slovakians does it take to screw up a Greek bailout?

Mon, 06/06/2011 - 16:35 | 1344371 Ahmeexnal
Ahmeexnal's picture

Greece to ECB: honey, my period is delayed.

Mon, 06/06/2011 - 16:32 | 1344374 centerline
centerline's picture

premature capitulation

Mon, 06/06/2011 - 16:35 | 1344386 AldoHux_IV
AldoHux_IV's picture

English is about as garbled as possible thanks to Google translate, but oddly enough far more understandable than the periodic soundbites of outright lies from the pathological troica of Rehn-Junker-Trichet

Very nice. Do the bond indentures/legal roadblocks matter when the kleptocrats can change anything anytime to anyone?

Mon, 06/06/2011 - 16:42 | 1344429 THE DORK OF CORK
THE DORK OF CORK's picture

I remember the time when the Euro was introduced - people were complaining about price increases.

The Euro masters tut tutted the peasants claiming that we have very tight fiscal rules blah blah blah.

But this fiscal tightness was a mere cover for their credit hyperinflation games.

Euro base money has to expand to re stabilise the system and that means buying gold to flood the system with M0 and M1.

The credit of the EMU ,Euro era of 10 maybe 15 to 20 years is going to turn into cash - if they do not the Euro is doomed.

Consumer inflation through wage deflation is here..............

PS - Irish consumption of crude oil was 200+ thousand barrels a day in 2005/6s credit explosion , now it is 160 thousand barrels a day and still falling I guess - thats austerity bitches , at least on a relative scale.

 

Mon, 06/06/2011 - 17:09 | 1344578 Gunther
Gunther's picture

That is the increase in M3 over time from the Bundesbank, numbers are seasonally adjusted.

Prices in Germany are up too, like a ticket for 10 km public transportation from 2,60 DM (=1,30 Euro) to 4,50 Euro today. Average wages are not up since then.

http://www.bundesbank.de/statistik/statistik_zeitreihen.php?first=1&open...

 

Mon, 06/06/2011 - 18:14 | 1344861 THE DORK OF CORK
THE DORK OF CORK's picture

Yes Gunther - the sign of a "responsible" Central bank with irresponsible clients.

Same  monetarist shit everywhere , just burn that oil as quick as possible baby.

Central Banks should hold the entire M1 or their books at all times but they just pretend , shhhhhh and hold M0 and a bit........until reality creeps in.

 

Mon, 06/06/2011 - 16:43 | 1344436 simonsito
simonsito's picture

handelsblatt is garbage - i can tell you based on daily experience. its more like CNBC....with some appearance of reason, only to be used as a cover for the usual brainwash.....they have to apologize for not doin any journalism whatsoever.....

Mon, 06/06/2011 - 17:20 | 1344478 Herman Strandsc...
Herman Strandschnecke's picture

I make a love the sentence there last:

The looming considerable resistance in the Union tends to suggest that many are apparently no longer prepared to support the need of European solidarity.'

I hope this sentiment it is includes politicians yes and the people not only them too.

Mon, 06/06/2011 - 20:50 | 1345407 trav7777
trav7777's picture

everyone wants their own handout to go along with it

Mon, 06/06/2011 - 17:02 | 1344525 slewie the pi-rat
slewie the pi-rat's picture

the version i got reads like it's from yoda via taiwan...

Mon, 06/06/2011 - 17:32 | 1344668 Nicholaz
Nicholaz's picture


The Government of the Euro zone is likely to decide later than planned on the second aid package for Greece.There were so many unresolved problems, that the finance ministers will not be able to decide the new loan package on 20  June, said a senior EU official to the Handelsblatt.

The planned financing of the new loan package from the euro rescue fund EFSF is experiencing unexpectedly big difficulties in the Euro-state, Slovakia. The country is not involved in the ongoing bilateral loans to the euro zone for Greece in the amount of 110 billion euros.

If the new loan program will be transferred to EFSF, Slovakia would (need to)  participate. Therefore the government in Bratislava refuses to run loans for Greece over the EFSF. Germany is in turn seek to use the EFSF for them, because then the federal government would be saved a delicate vote in parliament over the next aid package to save Greece.

Resistance is also coming from the UK, (because) the new loan package is not intended to be financed solely from the euro rescue fund EFSF. The remaining amount of eleven billion Euro in EFSM-fund of the EU Commission are to be mobilized. Money for EFSM will have to come from all 27 EU countries now, including countries outside the euro zone as Great Britain.

The government in London does not want to use the whole EFSM-pot for Greece alone. The end of June pending credit tranche for Greece will be paid even if the new aid package for Hellas is not aggreed on by then, it said in Brussels.

The IMF is now willing to pay its share in the amount of 3.3 billion € in any case. Only prerequisite is that the government and Parliament in Athens passes the promised additional austerity measures and privatizations as agreed.

In the German Bundestag, the opposition is growing: SPD parliamentary leader Frank-Walter Steinmeier, Chancellor Angela Merkel (CDU) has been invited to make a government declaration on the further support of Greece and the euro in the Bundestag this Friday.

He hoped that the coalition knows that they need a majority for this package, Steinmeier said on Monday in front of a SPD party meeting in Berlin. The looming considerable resistance in the Union tends to suggest that many are apparently no longer prepared to support the need of European solidarity.

Mon, 06/06/2011 - 17:18 | 1344604 max2205
max2205's picture

How on gods earth do they keep up with all this. They need to hire ACORN.... oh forgot they are busy working Obamarama's reelection campaign

Mon, 06/06/2011 - 17:29 | 1344608 max2205
max2205's picture

..

Mon, 06/06/2011 - 17:45 | 1344709 oogs66
oogs66's picture

I continue to believe that restructuring is in the works, but the EU, IMF and ECB only realized it too late, so they passed Greece for their next installment so they have a couple of months to sort out the details and strong arm banks into restructuring along with the ECB, EU, and IMF.

Mon, 06/06/2011 - 18:06 | 1344814 shortus cynicus
shortus cynicus's picture

One issue is a pending decision from German supreme court.

It is possible, that all this help and guaranties are constitutionally illegal.

Decision should be made within this year, but exact date is unknown.

 

http://www.bundesverfassungsgericht.de/organisation/erledigungen_2011.html , second position nr. 18

 

Just to make the situation more dramatic: the same court decided in year 1998 that Euro may be legal currency for Germany.

 

http://www.bundesverfassungsgericht.de/entscheidungen/rs19980331_2bvr187...

 

From today's point of view, this ruling is one big joke. We find there sentences like

  • except from Greece ( ..Mit Ausnahme Griechenlands...)
  • NO BAIL-OUT CLAUSEL ( ...schließe der Vertrag (Art. 104b) eine Schuldenübernahme zwischen Mitgliedstaaten oder durch die Gemeinschaft aus... ) 
  • creative accounting may be used to manipulate BIP [Goldman Sachs clause?]  (..."kreative Buchführungsmethoden" oder sonstige stabilitätswidrige Manipulationen zur Berechnung des Bruttoinlandsprodukts vorgenommen werden)

History has shown, that all fears were confirmed and judge's decision has been totally invalid.

 

Mon, 06/06/2011 - 18:05 | 1344816 cranky-old-geezer
cranky-old-geezer's picture

Second Greek Bailout Package To Be Delayed

Good, default, tell those damn bankers and bondholders fuck off.

Mon, 06/06/2011 - 19:05 | 1345037 Natasha
Natasha's picture

Sounds like someone is holding out for a bigger piece of the privatization pie.

Mon, 06/06/2011 - 21:40 | 1345592 Vampyroteuthis ...
Vampyroteuthis infernalis's picture

Even if Greece defaults screwing the bondholders, some bankster will make a killing off the CDS. F*ck banksters, they rob us coming and going.

Greece save what little you have and default ASAP!

Tue, 06/07/2011 - 01:48 | 1346060 skistroni
skistroni's picture

It's funny that the Greek Communist Party has always supported a default, nationalization of the banks, exit from the EU and only ever gets like 10% in the elections or polls. 

They do extend their plan to providing free housing, jobs, education, healthcare and LCD TVs for everyone, with the money printed by the Central (and only) bank.

If PM Papandreou or Samaras (the opposition leader), or maybe both together ( a scenario which is possible), would proclaim such a position (okay maybe without the LCD TVs) they would get more than 80% in an election. 

They won't however, which only goes to show that they obviously get their orders from elsewhere.

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