Monday, May 30, 2011

Reports: Next Greek bailout to include external supervision

by Bill McBride on 5/30/2011 08:50:00 AM

From the Financial Times: Greece set for severe bail-out conditions

European leaders are negotiating a deal that would lead to unprecedented outside intervention in the Greek economy, including international involvement in tax collection and privatisation of state assets ... the package would also include incentives for private holders of Greek debt voluntarily to extend Athens’ repayment schedule, as well as another round of austerity measures
excerpts with permission
From Reuters: EU racing to draft second Greek bailout: sources
The European Union is working on a second bailout package for Greece in a race to release vital loans next month and avert the risk of the euro zone country defaulting ... a new 65 billion euro package could involve a mixture of collateralized loans from the EU and IMF, and additional revenue measures, with unprecedented intrusive external supervision of Greece's privatisation program.
...
The next scheduled meeting of euro zone finance ministers is on June 20 in Luxembourg
The bond yields in Europe are fairly stable this morning. Here are the links for bond yields for several countries (source: Bloomberg):
Greece2 Year5 Year10 Year
Portugal2 Year5 Year10 Year
Ireland2 Year5 Year10 Year
Spain2 Year5 Year10 Year
Italy2 Year5 Year10 Year
Belgium2 Year5 Year10 Year
France2 Year5 Year10 Year
Germany2 Year5 Year10 Year

Weekend ...
Summary for Week Ending May 27th
Schedule for Week of May 29th