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Rreziku e krizës së borxhit  mund  të gëlltit ekonominë shumë të rënduar të 
Greqis që është plotësisht  e nënshtruar tashmë
 
 
 
 
 
Greece: European Leaders Set To Give Financial Rescue Fund  New Powers 
 
 
 
(http://www.huffingtonpost.com/2011/07/21/greek-bailout-private-sector_n_906147.html?view=print&comm_ref=false) 


 


 
 

Update: European leaders have agreed to a new Greek rescue plan that will  
temporarily cause the country to default on some of its debt, according to 
_The New York Times_ 
(http://www.nytimes.com/2011/07/22/business/global/European-Union-Summit-Meeting-on-Greek-Debt.html?hp) .  
BRUSSELS BELGIUM - Euro zone leaders were set to give their financial  
rescue fund sweeping new powers to prevent contagion and help Greece overcome  
its debt crisis, according to the draft conclusions of an emergency summit on 
 Thursday. 
The leaders met in Brussels after the European Central Bank signaled in a  
policy reversal that it was willing to let Greece default temporarily as 
part of  a plan involving longer official loans at cheaper rates, a debt swap, 
a bond  buyback but no new tax on banks. 
Minds have been concentrated by the danger that Europe's debt crisis could  
engulf the much bigger economies of Spain and Italy. Greece, Portugal and  
Ireland have already succumbed. 
The draft summit statement obtained by Reuters showed the EFSF rescue fund  
would be allowed for the first time to help states earlier with 
precautionary  loans, to recapitalize banks and to intervene in the secondary bond 
market. 
"To improve the effectiveness of the EFSF and address contagion, we agree 
to  increase the flexibility of the EFSF," it said, listing those three key 
steps,  all of which Germany had previously blocked. 
 
 



German Chancellor Angela Merkel and French President Nicolas Sarkozy 
crafted  a common position in late night talks in Berlin with ECB President 
Jean-Claude  Trichet. 
"I expect we will be able to seal a new Greece program. This is an 
important  signal. And with this program we want to grasp the problems by their 
root,"  Merkel told reporters on arrival in Brussels. 
Dutch Finance Minister Jan Kees de Jager said a short-term or selective  
default for Greece, long vehemently opposed by the ECB, was now a  
possibility. 
"The demand to prevent a selective default has been removed," he told the  
Dutch parliament. 
According to the draft, the maturities on euro zone rescue loans to all 
three  assisted countries would be extended to 15 years from 7.5 and the 
interest rate  cut to around 3.5 percent from between 4.5 and 5.8 percent now. 
The EFSF would be able to lend to states on a precautionary basis instead 
of  waiting until they are shut out of market funding, and to recapitalize 
banks via  loans to governments, even if they are not under an EU/IMF 
assistance  program. 
It would also be allowed for the first time to intervene in secondary bond  
markets, subject to an ECB analysis recognizing "exceptional circumstances" 
and  a unanimous decision. 
Germany blocked all these measures when the European Commission proposed 
them  back in February, at a time when the crisis was less acute, EU sources 
said. 
The wider EFSF powers could help deter or minimize any market contagion in  
case of a temporary Greek default. 
In an apparent trade-off for Merkel's new willingness to embrace such 
bolder  steps, Sarkozy dropped a French call for a tax on banks to help fund a 
second  Greek bailout. 
The leaders were also set to promise a "Marshall Plan" of European public  
investment to help revive the Greek economy, in a deep recession due to  
draconian EU/IMF-imposed austerity. 
The euro and European stocks, which had fallen on talk of a selective  
default, rallied sharply on news of the draft conclusions. The Stoxx European  
banking index was up 4.5 percent and the insurance index 3.4 percent. 
The risk premium investors demand to hold peripheral euro zone government  
bonds rather than benchmark German Bunds fell to two-week lows as 
expectations  of a bolder-than-expected Brussels deal took hold. 
"It really shows in the 11th hour leadership from the euro zone leaders,"  
said Niels From, chief analyst at Nordea. 
But JP Morgan economist David Mackie was more cautious, saying: "The key  
question is whether the measures in the package aimed at limiting contagion 
will  work. If they don't, more socialization (of euro zone debt) will be  
forthcoming." 
The 115 billion euro second Greek rescue package would involve both more  
official funding from the euro zone rescue fund and the IMF and a 
contribution  by private sector bondholders, as well as Greek privatization revenues. 
Senior bankers were present in the corridors of the summit but not at the  
table, officials said. They included Baudouin Prot of BNP Paribas, the 
foreign  bank with the biggest exposure to Greek debt, and Deutsche Bank chief 
executive  Josef Ackermann, chairman of the International Institute of 
Finance, which  drafted proposals for private sector involvement. Top Greek bankers 
were also  present. 
The IIF proposed a "voluntary" exchange of Greek debt maturing until the 
end  of 2019 for 30-year paper and forecast a 90 percent take-up rate. Euro 
zone and  banking sources said the resulting net contribution of 17 billion 
euros would  mean a write-down of about 20 percent on the value of banks' 
Greek bond  holdings. 
The new bailout would supplement a 110 billion euro ($156 billion) rescue  
plan for Greece launched in May last year. 
Worried about the impact on financial markets and wary of angering their 
own  taxpayers, euro zone governments have struggled for weeks to agree on 
major  aspects of the plan, especially a contribution by private sector 
investors. 
New IMF Managing Director Christine Lagarde also attended the summit. The  
global lender has urged euro zone leaders to put more money into their 440  
billion euro European Financial Stability Facility. 
The proposed expansion of the EFSF's role would have to be endorsed by  
national parliaments, but diplomats said critical lawmakers in Germany, the  
Netherlands and Finland were likely to back it since the private sector was  
sharing the burden. 
Even so, Thursday's summit is very unlikely to mark a complete resolution 
of  the crisis, as Merkel herself acknowledged earlier this week. 
A second bailout may simply keep Greece afloat for a number of months 
before  a tougher decision has to be made on writing off more of its debt. 
Many economists believe the only way out of the euro zone's debt crisis in  
the long run may be closer integration of national fiscal policies -- for  
example, a joint euro zone guarantee for countries' bonds, or issuance of a  
joint euro zone bond to finance all  countries.