This page has been archived and commenting is disabled.

Timeline For Greece Following Today's FinMin Meeting

Submitted by Tyler Durden on 02/20/2012 08:23 -0400

Today's FinMin meeting in Brussels is supposed to be "the one", as Greece's fate is finally decided, and Belgian caterers are forced to apply to the EFSF for a bailout (or maybe China will roll them up?) as prospects for further local summits, meetings, shindigs, tete-a-tetes, teleconferences and what nots are severely curtailed. Maybe - maybe not. We will reserve judgment until the end of the day, because, as shocking as it may sound, Europe is not the best when it comes to making decisions on short notice. Or any decisions for that matter. Especially ones which leave Greece in the same predicament as before, and when the country will certainly need more bailouts down the road, because "cutting" debt down to only 129% of GDP does leave some things lacking. In the meantime, assuming everything goes according to status quo plan, here is a timeline and breakdown of events in the aftermath of today's meeting.

Via Reuters

Euro zone finance ministers are expected to approve a second financing package for Greece on Monday, which aims at reducing Greek debt towards 120 percent of gross domestic product by 2020 from 160 percent now.

Approval of the new, 130-billion-euro ($170 bln) financing package, which will come on top of a 110-billion-euro bailout granted in May 2010, will set in motion a debt restructuring that aims to halve Greece's privately held debt.

Below are some of the critical dates and key events coming up that policymakers hope will draw a line under the more than two-year European sovereign debt crisis, which began in Greece.

Feb 20

- Euro zone finance ministers (the Eurogroup) to take a decision whether to grant Greece the second financing programme.

- This decision will open the way for euro zone countries to approve higher guarantees for the euro zone's temporary bailout fund, the European Financial Stability Facility (EFSF), which will need to raise money on the market to finance the bailout.

- Preliminary Eurogroup discussion of whether to allow the 440-billion-euro EFSF and the 500-billion-euro permanent bailout fund, the European Stability Mechanism, to run in parallel, nearly doubling the euro zone's bailout capabilities.

Feb 21-22

- If the Eurogroup gives its go-ahead on Monday, Greece will be able to launch a debt restructuring offer, inviting private investors to swap around 200 billion euros of Greek government bonds they hold for new ones worth around half as much.

Feb 23-24

- Finnish parliament likely to debate package in order to approve higher EFSF guarantees.

Feb 24-26

- Finance ministers and central bank governors from the world's 20 biggest economies, meeting in Mexico, to discuss providing more funds for the International Monetary Fund. G20 countries have signalled that they will only agree to increase IMF funds if euro zone countries allow the ESM and the EFSF to run alongside to boost the euro zone's bailout capacity.

Feb 27

- German parliament to vote on bailout package and use of the EFSF to secure new Greek bonds.

March 1-2

- EU summit, which will decide, among other things, whether to allow the ESM and EFSF to run in parallel, boosting the bailout capacity of the euro zone. Leaders may also be give their imprimatur to the second Greek package.

March 8

- The last day to sign up for Greek bond swap offer.

March 9

- Responses from investors concerning the bond swap offer are processed.

March 10-11

- The actual swapping of Greek bonds for new, longer-dated securities with a lower coupon takes place.

March 12-13

- Euro zone and EU finance ministers meet.

March 20

- Greece is due to repay 14.5 billion euros of debt. If the bond swap goes ahead, this would be covered, meaning Athens will avoid defaulting on this payment.

March 30-31

- Informal meeting of euro zone and EU finance ministers and central bank governors in Copenhagen.

April 20-22

- IMF meeting in Washington on bigger IMF resources

- advertisements -

Mon, 02/20/2012 - 08:26 | 2177075 GeneMarchbanks

Slowly they're getting everyone to pay less and less attention. Which is the desired goal in fact.

Mon, 02/20/2012 - 08:26 | 2177076 Mongo

Ponzi calendar 2012

Mon, 02/20/2012 - 09:04 | 2177118 Silver Alert

2 dates missing from the article:

- LTRO 2

- Greece's next bond deadline

Mon, 02/20/2012 - 08:28 | 2177077 delbutler

I think the phrase "Coriolis effect" has significance here........

Mon, 02/20/2012 - 08:30 | 2177081 valley chick

now what could possibly go wrong?

Mon, 02/20/2012 - 08:34 | 2177083 ebworthen

"You owe me $14 but you don't have it so I'll give you $140 so you can pay me $14; everything is solved, right?"

A global cabal of fools.

Mon, 02/20/2012 - 08:45 | 2177096 agent default

You owe me $14 but you don't have it so I'll give you $140 so you can pay me $14, if you pledge your first born as guarantee, is more like it.

Mon, 02/20/2012 - 09:05 | 2177122 FMR Bankster

You owe $14 due in March to a bunch of hedge funds and banks and $400 of which $200 is owed to me and $200 to other private sector investors. I'll advance you $14 to allow you to pay off the hedge funds and banks if you promise to abuse your citizens for ever and ever to make sure I get paid back. While your at it see if you can't get the other guys to write their $200 down to $100. Wait a minute, that means your banks will all fail, won't they. We'll, then I'll advance you another $40 to recapitalize the banks. Sh*t, this is getting confusing. You can have the money this time but why don't you just drop the euro and go back to the drachma.

Mon, 02/20/2012 - 08:34 | 2177086 Coldfire

F-U-C-K-A-R-O-W.

http://www.urbandictionary.com/define.php?term=fuckarow

Mon, 02/20/2012 - 08:38 | 2177088 djudy003

Sounds straight forward in the way it is laid out.

Mon, 02/20/2012 - 08:40 | 2177091 kralizec

Cue the Three Wise Monkeys...

Mon, 02/20/2012 - 08:43 | 2177094 El Gordo

It's Monopoly money anyway, so what difference does it make if they give it away or piss it down a rat hole. There's plenty more where that came from, until they run out of forest to make the paper or they run out of digits to act like someone is actually keeping score.

Mon, 02/20/2012 - 08:53 | 2177107 machineh

Corollary: what difference does it make whether the Troika channels funds to European banks indirectly via the Greek conduit, or directly if Greece flakes out?

From a bankster POV, the cash flow result is the same, with or without the Greek middleman.

The same logic applies to Greek citizens -- no benefit for them; the bailout is just a roundtrip passthrough.

Mon, 02/20/2012 - 09:10 | 2177130 brewing

you mean coronary...

Mon, 02/20/2012 - 08:44 | 2177095 rupeshpatel

bottom line is that markets dont seem to care if greece will be in need of a bailout down the line (or even for the rest of eternity). the market is rallying as it believes nothing of any siginificance is going to happen in the forseeable future .. no default & no exit from the eurozone. if politicians keep greece muddling through for another couple of years the markets are happy to keep going buying (perhaps not with conviction but then maybe we are entering a period with generally low volumes in equity markets?).

Mon, 02/20/2012 - 09:23 | 2177150 slewie the pi-rat

and welcome

you speak of "conviction"-type equity buying, or rather the lack of it

if we think of a P/E ratio, you can know the price, but how do you know what the "earnings" really are? from the published "income statement" accoring to "generally accepted" accounting rules?

do you "believe" the BalanceSheet?

let's say for BAC bank0fAmerica

how much do you think a share of its stock is worth based on its financial statements?

or is all "P/E" value now simply dependent of fiat printing and what the banks and the buffets are up to, behind the scenes?

is that what make a "market" happy?

Mon, 02/20/2012 - 08:48 | 2177099 reutersanalyst

http://capital3x.com/think-tank/risk-trades-elongates-key-fx-analysis/

risk trades in vogue

Mon, 02/20/2012 - 08:48 | 2177100 machineh

Spot the missing step in this sequence:

March 12-13 -- Euro zone and EU finance ministers meet.

March 20 -- Greece is due to repay 14.5 billion euros of debt.

Answer: nowhere is the EFSF bond issue to 'raise money on the market to finance the bailout' [see Feb 20th entry above] shown.

As discussed previously at ZH, the gross amount EFSF needs to raise is far higher than just the 14.5 billion coupon payment. And EFSF has never floated that large an issue before.

Unless there is some corrupt secret plan for the ECB to provide a monster backstop bid at the auction (i.e., 'print money'), then EFSF has got a problem. 'Big hat, no cattle' is my diagnosis, and I'm stickin' to it.

Mon, 02/20/2012 - 08:49 | 2177101 Flying Dutchman

All growing pains. This 10 years old system will be mature after a short, but heavy, time. It reminds me of my own youth. Spending and party! Ahum, that’s over now. There is no eternal youth. US citizens, thank about it! The financial situation in the US is much more lousy then it is in the EU. We use Greece as a sledgehammer to hit larger countries like Spain and Italy. (And I feel no sorry for the Greek people. They elected useless people for more the ten years.) Despite the information sprinkled to you, these countries make progress to improve their financial situation. It goes slowly, yes it does. But what do you expect from an addict. Therapy always takes a long time From now have fun with boozing, smoking and sniffing. Your government cannot use EU as a distraction for ever. Wait till you have to visit AA. At least I hope you’ll do that once.

Mon, 02/20/2012 - 08:54 | 2177109 Sandmann

Can see why you were never allowed to set foot on dry land. Greece is corrupt to the core, Papandreou Sr. created a lot of the pork barrel and log-rolling to build his party machine. It is typical Balkans with public payroll as rewards for clan votes. You have obviously never witnessed Greek corruption inside European institutions first-hand. You clearly have no grasp of the issues, but you could explain to the rest of us how The Netherlands intends to pay off Greek Debt

Mon, 02/20/2012 - 11:26 | 2177119 Flying Dutchman

We're not.

At the end Greece = exit. But not for now.

Btw. Greece is cheaper the Iraq. Greece is not the problem. US debt. tháts the problem

Mon, 02/20/2012 - 14:56 | 2178139 Panafrican Funk...

More specifically, it isn't whether the US can pay off the debt, but rather the persistently declining value of said debt.

Mon, 02/20/2012 - 09:10 | 2177129 whirlybird rules

Herr Sandmann, you are as delicate as Godzilla upon Tokyo ;) Let us hope that Athens eventually can see the Troika monster descend into the sea!

Mon, 02/20/2012 - 09:02 | 2177117 machineh

Erm, maybe a better analogy is that we're all in a crackhaus together with rubber tubing tournaquets round our forearms and veins bulging.

Greece has passed out; Portugal and Ireland snorted some bailout coke to counteract the opiate coma; Spain and Italy are glassy-eyed.

But Nordeuropa and Nordamerika are still enjoying the heroin rush from a fresh injection. No money, no prospects, our health is failing. But we're feeling fine ...

Mon, 02/20/2012 - 08:50 | 2177102 sumo

John Ward thinks this is just Kabuki with Bouzouki:

http://hat4uk.wordpress.com/2012/02/20/greek-deal-it-might-be-agreed-tod...

The plan to eject Greece is intact.

Mon, 02/20/2012 - 08:50 | 2177103 jmcadg

It will all go through swimmingly.

I don't tend to bet as when I choose black it always comes up red.

Fingers crossed.

Mon, 02/20/2012 - 09:19 | 2177144 Sudden Debt

You forgot that time in 2008 when you actually put that bet on black and it actually turned out black...

Mon, 02/20/2012 - 08:56 | 2177110 youngman

APRIL 23rd

- Greece begins negociations for another 170 billion bailout

Mon, 02/20/2012 - 09:18 | 2177132 Sudden Debt

APRIL 24rd

- A unexpected rounding error on deficit calculations have brought to light that the current quarter deficit is another 400% of GPD bringing the debt levels to 520% of GPD, slightly above acceptable accorting to the EU councel.

The first negatiation for the bondholders to take a 1% haircut which should be enough will start in 6 months from now....

Mon, 02/20/2012 - 08:57 | 2177111 sumo

Gold and Silver should get slammed today: "good" news from EU + illiquid markets with US closed = perfect conditions for that not-for-profit seller.

Mon, 02/20/2012 - 09:27 | 2177157 youngman

And the USA is selling 95 billion this week...so TPTB will keep gold and silver down...but watch those Chinese markets....they seem to be doing quite well

Mon, 02/20/2012 - 09:00 | 2177114 tim73

"Europe is not the best when it comes to making decisions on short notice. Or any decisions for that matter"

The American decision making process aka "Fire, Ready, Aim!" is sooooo much better. Although, having spare toes available is recommended.

Mon, 02/20/2012 - 09:15 | 2177135 Sudden Debt

That drone killed 200 people at that party because of a software problem when the operating software started a update from Windows 8 beta 1.0 to Windows 8 beta 1.000001....

Mon, 02/20/2012 - 09:08 | 2177115 Global Hunter

somebody else has probably said this, but they're using the same strategy with Greece as they used and are using with Fukushima, stretch it out and hope everybody loses interest in the issue when the really bad stuff happens. This is what modern western style "leadership" has come to

edit: very first comment on the thread I see...

Mon, 02/20/2012 - 09:10 | 2177128 TradingJoe

I am totally relaxed, have made my "peace" with these leeches a long time ago AND planned accordingly! Whatever the fuck they are doing I'm SAFE, will stay safe and come out if not on top, at least ready and ABLE to start over!! (Got PHYZZZZZZ ?!?!?)

Mon, 02/20/2012 - 09:31 | 2177161 Martin W

This calendar is pretty bullish, isn't?

Mon, 02/20/2012 - 09:31 | 2177163 tim73

2055: Greece bailout package negotiations still not competed. Iran insists all their 12145 nuclear tipped missiles are only for peaceful purposes. Muslim Israelis vote Jews out of Israel. Greenland Eskimos revolt violently againts New Israel.

Mon, 02/20/2012 - 09:41 | 2177183 LawsofPhysics

March 20; Precisely how in the hell does a bankrupt country that is negociating a bailout "pay" of 14 billion? At what point do we call these bailout talks precisely what they are, a fucking farce and the meeting to decide the terms of extortion by the central banks.

Mon, 02/20/2012 - 09:48 | 2177197 adr

Bank A takes out a $100 million loan from Bank B to use for whatever it needs. Bank B takes out a $100 million loan from Bank A to use for whatever it needs. $200 million is put into the system inflating the bubble. Bank A and Bank B's debt cancel each other out and they keep the millions made from juicing the market. Ponzi continues.

It is never mentioned how both banks got the $200 million to lend.

Mon, 02/20/2012 - 09:42 | 2177186 adr

Was the Euro finance meeting to bail out Greece again purposely scheduled on a US holiday? Perhaps the Eurocrats wanted to build up some nice positions in US equities depending on the progress of the negotiations. One hell of a lot of inside info there.

Mon, 02/20/2012 - 10:09 | 2177236 tom a taxpayer

Feb 20- Euro zone finance ministers (the Eurogroup) to take a decision whether to grant Greece the second financing programme.

March 1-2- EU summit, which will decide, among other things, whether to allow the ESM and EFSF to run in parallel, boosting the bailout capacity of the euro zone. Leaders may also be give their imprimatur to the second Greek package.

Does this mean the Euro zone finance ministers decision on Feb 20 is not the final decision, and that it must be approved by the EU summit on March 1-2? Or is the "imprimatur" merely a rubber stamp?

Mon, 02/20/2012 - 11:51 | 2177553 DutchR