Tonight's Headlines: Bloomberg - Europe Fails to Agree on Greek Aid Payout; Reuters - Euro Zone Agrees To Pursue Greek Debt Rollover Plan

Tyler Durden's picture

Good thing the media is in agreement...

From Bloomberg:

Europe Fails to Agree on Greek Aid Payout, Pressing Papandreou

European governments failed to agree on releasing a loan payout to spare Greece from default, ramping up pressure on Prime Minister George Papandreou to first deliver budget cuts in the face of domestic opposition.
On the eve of a confidence vote that may bring down Papandreou’s government, euro-area finance ministers pushed Greece to pass laws to cut the deficit and sell state assets, and left open whether the country will get the full 12 billion euros ($17.1 billion) promised for July.
“We forcefully reminded the Greek government that by the end of this month they have to see to it that we are all convinced that all the commitments they made are fulfilled,” Luxembourg Prime Minister Jean-Claude Juncker told reporters early today after chairing a seven-hour euro crisis meeting in Luxembourg.
Decisions on the next payout and a three-year follow-up package were put off until early July, prolonging Greece’s fiscal agony and heightening the brinksmanship that has marked Europe’s handling of the unprecedented debt crisis.

Meanwhile, over at Reuters:

Euro zone agrees to pursue Greek debt rollover plan

Euro zone finance ministers agreed on Monday that they would seek voluntary rollover of Greek debt by private bondholders to finance a substantial part of Greek funding needs in coming years.

The agreement means a German idea of Greek bond swaps has been dropped.

"Ministers agreed that the required additional funding will be financed through both official and private sources and welcome the pursuit of voluntary private sector involvement in the form of informal and voluntary roll-overs of existing Greek debt at maturity for a substantial reduction of the required year-by-year funding within the programme, while avoiding a selective default for Greece," the ministers said in a statement after a meeting in Luxembourg.

The ministers noted, however, that Greek debt would only be sustainable if Athens delivered on its fiscal consolidation plans, raised 50 billion euros ($72 billion) from privatisation until 2015, and implemented structural reforms.

At least we can all agree that the chaos is now absolutely complete.

Update: Reuters has since nudged their story as follows:

Europe delays decision on emergency loans to Greece

Euro zone finance ministers postponed a final decision on extending a further 12 billion euros ($17 billion) in emergency loans to Greece, saying Athens would first have to introduce harsh austerity measures.

The ministers said in a statement that they expected to pay the money by mid-July. Greece has said it needs the loans by then to avoid defaulting on its debt.

But keeping up the pressure on Athens, the ministers insisted that disbursement would depend on the Greek parliament first passing laws on fiscal reforms and selling off state assets.

The statement, issued after a seven-hour meeting in Luxembourg that ran into the early hours of Monday morning, also committed the ministers to putting together a second bailout plan for Greece, beyond an initial 110 billion euro rescue launched in May last year.

The ministers said that in addition to more official loans, the new bailout would include a voluntary rollover by private investors of their Greek debt holdings. The statement did not say how large the new plan would be or give details of the rollover..... etc


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Concentrated power has always been the enemy of liberty.'s picture

No, we will not raise the debt limit.  We are bankrupt already.

Yes, we will spend more so that we can agree to cut spending later.

Maybe we will just sell all the children of the voters so that we can eat bon-bons.

Wait, we did that already...

Beancounter's picture

lol exactly, they need a debt schedule that goes up to 11.

Highrev's picture


I like the way you say rollover.

Who else wants to say rollover?

Now, can you say ho-hum?

I like the way you say ho-hum.

Wall of worry?


phungus_mungus's picture

Actually these two news articles reflect perfectly the situation int he Euro Zone... No one really knows what the hell is going on, all we can really do is wait for a bright flash and loud noises...  

Founders Keeper's picture

I was thinking the same thing, phungus_mungus.


bob_dabolina's picture

eur/aud is stable at the moment

I see no imminent problems in the credit markets. 

Barb Dwire's picture

LOL! I can't wait to see which banks "volunteer"

oogs66's picture

hard to do anything but laugh and stay short

Cognitive Dissonance's picture

Speaking out of both sides of the mainstream media mouth. And here I thought only politicians did so.

Hedgetard55's picture

How do you say "kick the freaking can" in German?

Anyway, who cares. Did you all see Rory crush it this week at Congressional?


DonutBoy's picture

Bullish for stocks, either way

ThisIsBob's picture



Forgiven's picture

I predict that tonight will pass, tomorrow will come, and Greeks will be throwing stones, but little will change.

Hearst's picture

Throwing Stones

"Heartless powers try to tell us what to think.  If the spirit's sleeping, then the flesh is ink.  History's page, it is thusly carved in stone.  The future's here, we are it, we are on our own."


Debt Rolling's picture

"Voluntary contribution": so those who voluntarily contribue sacrifice themselves for those who don't? 

Few chances to work. 

chump666's picture

EU has two choices, let the banks lose or more riots...and if the German taxpayer has to keep supporting the bond market for the Greeks (PIIGS) to then flow-money to senior bond holders.  There will be riots in Germany!


takeaction's picture

How do I send new stories that I think are worthy of ZH? to Tyler? This one demands front page news IMO. Fukushima type disaster possible here. I don't like to cross post, but this is very serious.......Thanks


Scisco's picture

ctrl+v from front page.

The Zero Hedge Team
tips [ at ] zerohedge [ dot ] org - Our Reader Tips Mailbox

This does not bode well for due diligence.

Re-Discovery's picture

Used to be sell first, ask questions later. 

But when it's taxpayer money, hell, why not buy first, ask questions later.

Infinite QE's picture

Reuters is Rothschild owned so I'd say they are right on this one.

jmc8888's picture

The Greeks have to see to it to convince them? Looks more like they didn't convince the Greeks that this all wasn't a scam and back door bailouts back to their own banks.

Reminds me of the newspapers from Back to the Future that would change.  Emmitt Brown Committed turns to Emmitt Brown Commended.  Which to believe? Neither?


koot's picture

Yep, the Bilderberg Group is a big Kumbaya of agreement, almost as much unity as the Obama adminstration. 

Ned Zeppelin's picture

A "voluntary rollover" is a joke.   

oogs66's picture

yes, will take about 2 days for the hedge funds to game the system and own the right bonds, and the banks and governments will be in worse shape than ever, but hey, they avoided defaulting today - a joke

janus's picture

blow back derelict wind/ lay my soul in the fallow field

Joebloinvestor's picture

I guess you can call it "voluntary", but it is with a gun to the head.

Default and take a haircut.

Extend maturity and take a kicking.

And Greece is gonna default anyway.

CrashisOptimistic's picture

This can be finessed.  The banks can be persuaded to re-lend money to Greece at 5% (by having the ECB pay the bank the other 25%/yr to get to market rates).


sasebo's picture

I predict that until we force our incompenent asshole politicians to take the right to print money away from a small group of greedy, psychopathetic, billionaire assholes who print the money & loan it out at interest or gamble with it, nothing will change. Especially if they print more money to cover their gambling losses.

djsmps's picture

I got a kitten 9 weeks ago (who I love), and I'm allergic to him.

Barb Dwire's picture

I'm allergic to cats too and have had 4. Your body gets used to it - but lots of Benadry/qntihistamines work wonders too


Everyone needs a kitten

Alea Iacta Est's picture

Reuters is beyond worthless.

How many times has a reuters source "confirmed" a Greece deal was done now?

Coldfire's picture

Empty words for public consumption. Clearly it is ass-covering time, big time, for the hapless Euro politicians. But it's too late. I love the smell of state default in the morning. Smells like freedom.

Itsalie's picture

Chaos? More bad economic news as Japan posted another $10b trade deficit (no, its not a mistake, the Japanese export robot has died another death), Fitch just commented China's easy money policy has fueld unprecedented housing bubble and inflation.

BUT it is time to ramp the euro, ramp up stocks, all risks are somehow off at this time. Maybe the weary eyed hedgies left their machines in risk-on mode during opex last Friday and gone missing in action somewhere in squid-organzed outing to patpong over the weekend.

Bansters-in-my- feces's picture


Let the Banksters "Eat Shit"....!!!!!

bullet357's picture

+10  rope & pichforks

Clowns on Acid's picture

Roll over Beethoven.....Roll Over Beethoven and tell Tschaikowsky the news.


Xibalba's picture

who's paying whom here? 

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Yen Cross's picture

 Well come to salt water.