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Saturday, February 18, 2012

A few key dates for the Greek Debt Deal

by Calculated Risk on 2/18/2012 10:51:00 PM

The debt deal needs to be finalized before March 20th when €14.4bn of Greek bonds mature. Without the debt deal, Greece would default on March 20th.

On Monday Feb 20th, euro-area finance ministers are expected to meet in Brussels and approve the deal. According to Reuters:

Some officials in the 17-nation currency union warn chances of a deal at a euro zone meeting on Monday are little higher than 50-50.
Obviously approval isn't assured.

Sometime next week the Greek parliament is expected to pass legislation to insert "collective action clauses" in bonds to force all private holders to accept the deal. The final details of the swap are expected to be set at the Monday finance minister meeting, and the swap is scheduled to take place between March 8th and March 11th (cutting it close!). See Financial Times: Greece sets date for €200bn debt swap

Even with all the austerity and severe recession, most Greeks still want to stay in the euro, from Reuters:
A survey by pollster MRB for Sunday's Realnews newspaper showed 72.7 percent of Greeks want the country to stay in the euro
Here is a list of key dates:

Feb 20th: Euro-area finance ministers meet in Brussels.
Week of Feb 20th: Greek parliament to vote on legislation to insert "collective action clauses" in bonds.

March 1st and 2nd: EU leaders meet in Brussels.
March 8th: ECB holds rate meeting
March 8th - 11th: €200bn private sector bond swap is scheduled.
March 12th: Euro-area finance ministers meet in Brussels
March 20th: €14.4bn of Greek bonds mature.

Summary for Week ending February 17th
Schedule for Week of February 19th