Spiegel Reports Greek Bailout #2 To Surpass €100 Billion

Tyler Durden's picture

It's the weekend, which means another Spiegel hit piece over the solvency and stability of the Eurozone is overdue. Sure enough, the publication comes through admirably with "New Greek aid to cost more than one hundred billion euros." As a reminder, until as recently as 24 hours ago it was expected that the bailout would be at most €80 billion, with half coming from Greek privatization efforts. Naturally, this means that even more money will be transferred from taxpayer pockets to bank capital deficiency accounts. Next up: Greek bailouts 3, 4, 5, by which point Goldman will have hopefully achieved its life long ambition of opening a Goldman Sachs-branded ATM at the main entrance to the Acropolis, which GS will have LBOed using discount window capital.

As for the photo from a May 30 protest which accompanies the Spiegel piece, it is sadly amusing that the Greek lady next to the EU Swastika flag is wearing designer glasses and a gold watch.

Google translated from Der Spiegel, although the gist is clear: the bailout, which has to be ratified by Greece, may be that more problematic now that even more Greek assets will have to be pledged to facilitate the ongoing colonization of Greece by its temporarily solvent Eurozone brethren.

A new aid program to Greece cost a lot more money than previously thought. Experts from the Federal Treasury and the so-called Troika of the European Commission, European Central Bank (ECB) and International Monetary Fund (IMF) hold after SPIEGEL information a magnitude of more than one hundred billion euros for possible when the Greeks in 2013 and 2014, foreign aid also depends should be. Cause of cost increases, the Greek government bonds, for the 2014 follow-up financing is required.

Hamburg - It is once again really expensive: a new aid program to Greece cost a lot more money than previously thought. Experts from the Federal Treasury and the so-called Troika of the European Commission, European Central Bank (ECB) and International Monetary Fund (IMF) hold after SPIEGEL information a magnitude of more than one hundred billion euros for possible when the Greeks in 2013 and 2014, foreign aid also depends should be. Cause of cost increases, the Greek government bonds, for the 2014 follow-up financing is required.

At a meeting of senior officials from the Euro-zone last Wednesday rejected Financial Secretary Jörg Asmussen details of a new program participants after, if present investors in some of their claims on Greece to give private, too. It is not enough that private investors their money more freely in the country were, as suggesting the ECB.

He stood alone against the rest of the euro zone. Asmussen indirectly threatened at the meeting with a state bankruptcy Greece . His colleagues, he explained that the private sector is not the consent of the Bundestag's participation will be without - and without any new program. Without new tools but the country was soon face bankruptcy.

Asmussen had strict instructions to get away from Finance Minister Wolfgang Schäuble (CDU) to agree to any solution, unscathed by the private investors. not the money for the new program must come solely from public funds, Schäuble announced before the meeting as a line of travel. The State went three clock on Thursday morning apart without result. Now the Finance Minister should, at their meeting on 20th June come to a conclusion.

Discussions in Berlin, protest in Athens

At the conclusion of the Troika talks Schäuble made this Saturday once again that he wants the government in Athens, but also private creditors to accept strict liability to remediate Greece. It was "clear that further measures in the fiscal area and in the privatization by the Greek government will be required. The private creditors will have to make a voluntary contribution."

Such a move, however, is tricky because it could trigger a disastrous chain reaction in the balance sheets of the creditors. Thus, the rating agency Standard & Poor's warned in a Reuters news agency this report when creditors de facto to a voluntary waiver would forced to claims because they were at risk otherwise even higher losses, would the government bonds with the default status of "default" is provided. As a result, such as credit default swaps could be due.

The joint expert report by the International Monetary Fund, European Central Bank and European Commission should officially presented next week. Schäuble: "Then we will evaluate it carefully and circle the euro-zone countries will decide on further steps as soon as the report is available, we will also inform the German Bundestag immediately.."

On Friday the troika had been in talks with the Greek government the way cleared for the next installment from the first aid package , the total volume of 110 billion €, and has one year to the way well before had been brought. Now, additional 12 billion flow to Athens. The fact that it solved the problems are not, at this stage was already clear. Therefore, additional financial help in sight.

FDP chairman Rainer Brüderle announced that the Bundestag would not be waving another utility easily. He has already made conditions for approval of the planned Euro-emergency funds. The "Hamburger Abendblatt" he said, not aid from the bailout fund for €-countries are expected to be decided, against the will of the primary financers of Germany. "The federal budget is no self-service store for countries that get into difficulties."

Brüderle also said that in the Greek crisis debt restructuring "makes sense at a time X may be" could. "But Greece is not a protectorate." The decision falls in Athens. The country must decide whether to stay in the monetary union, according to former Federal Minister of Economics. "A withdrawal may be technically possible, but the Greeks would have significantly more difficult for a return to drachma."

In Greece, more resistance to the planned austerity measures and privatizations. The two most influential Greek unions Saturday in Athens against the privatization of state enterprises at the protest. Despite a call for a mass demonstration took part but only about 1,000 people at the protest. Most of them are employees of the state electricity utility PPC, port workers and teachers. Only on Friday demonstrators had occupied the Ministry of Finance .