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| Date: June 28, 2010 | Source: Europa Press |
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Loading ... Greece is preparing to return to financial markets the next July to try to get around 4,000 million euros, which would be its first operation since last May resort to the help of the European Union (EU) and the International Monetary Fund (IMF) said on Monday according to Financial Times.
The Greek agency responsible for debt management, Petros Christodoulou said that the intention is to issue in July-bills with maturities of three, six and twelve months.
The EU and the IMF had approved the refinancing of short-term debt in both July and October this year, as set out the terms of the loan of 110,000 million euros agreed with the Government of the Hellenic country.
However, investors warn that the decision of Greece is risky, because a poor auction could affect the general hard on the situation of the country. Therefore consider that the big test will be the interest rate have to pay to attract buyers, pointing out that some unsustainably high premiums could worry investors and undermine confidence.
"If the auction goes badly for Greece could affect other countries like Portugal and Spain, which could end up having to use payday loans as Greece," says an expert.
The Hellenic Executive believes that market confidence will improve before bond auctions 13 and July 20, because the pension system reform, the centerpiece of its plan of fiscal consolidation in three years, is expected to be approved next week in the Greek Parliament.
Nevertheless, government sources Hellenic accept that they have to pay a high premium in the auction, as it will take time to convince investors that fiscal consolidation is underway. In addition, they stress that this short-term debt does not have great weight in the overall scheme and emphasize that there is "sufficient time" before returning to the markets by a significant amount.
| Date: June 5, 2010 | Source: Sources |
Go ahead and rate this post Loading ... The fragile financial situation of Hungary, alarm bells ringing does not rule out another crisis to the Greek. Problems of Hungary raised the risk of investing in Spain, the differential with the long-term German debt approached 200 basis points - and the Spanish bond yields exceeded 4.5% at closing.
The collapse of the value of the euro to $ 1.2, its lowest level in five years, and the fall of Wall Street by the poor reception given to U.S. unemployment data May encouraged the punishment suffered yesterday in the Spanish stock market a very black day, driving down the Dow to its lowest level in 12 months down to 8,923 points with a 5.32% weekly.
A renewed fears of a European debacle did not help the reduction of recommendation from HSBC for the stock on the continent.
One must go back to May 2009 to see the Ibex 35 below 9,000 points. Gone is the brilliant recovery experienced by the Spanish stock market in the second half he pulled himself to 12,000.
| Date: May 8, 2010 | Source: Sources |
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The fear that the crisis in Greece spread to other neighboring countries and thereby hinder the global economic recovery punished the Spanish stock market this week, which recorded the second largest fall in its history, losing 13.78% and back levels of a year ago.
Specifically yesterday, the stock market fell 3.28% , the fourth largest annual decline, and recorded a new yearly low near 9,000 points, affected by the decline of international markets for fear of the spread of Greek debt crisis to other countries.
The last day was the trigger for a week, "black" in which investors opted to sell in bulk.
In fact, to find a larger drop than this week must go back to October 2008, when the stock lost 21.20% of its value in just five trading days.
The main setback was suffered earlier this week, when the false rumor that Spain had requested assistance Interncional Monetary Fund (IMF) to finance its debt caused panic in the Spanish market, where the Ibex-35 is deflated a 5, 41%.
The international agency denied this request, but this did nothing to calm the markets, since a day after he urged Spain and Ireland and Portugal, to apply "promptly" fiscal adjustment measures. Perhaps for that reason, the negotiation of the so-called CDS, insurance to cover the default risk of debt of these three countries, like those of Greece, marked highs for much of the week.
Like the Spanish stock market, other European markets fell yesterday to force the withdrawal of capital from European investors estadoundenses and dragged by the Wall Street downtrend in share trading hours.
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| Date: May 5, 2010 | Source: AlertNet |
Go ahead and rate this post Loading ... The "pandemic" Greek is already on the table, rising country risk more generally throughout the euro area and with the stock falling block. The start of Portugal on negative watch by Moody's was now the main trigger investor panic that led to the Dow losing 2.27%, in a highly volatile session. In addition, serious riots in Greece have raised fears that the government can not implement the adjustments, which would mean the suspension of payments of the Hellenic country.
Another dark day for European equity markets, the day the ECB council member warned of the risk of contagion of the Greek crisis. But that contagion is a reality, as demonstrated by the general fall in European equity markets and Wall Street, he could not abstract the problem of the Eurozone, although corporate earnings and relatively positive economic data.
The Dow, who came to threaten 9,500 points, finally closing with a drop of 2.27% to 9,635 points, surpassing the falls of its main European counterparts. Paris was down 1.44%, down 0.78% Fracfort and London, 1.28%. The Eurostoxx subtracted 0.91%. Trading volume soared continued: 9.849 million euros.
"While it is true that in many markets 'speculators' who 'fish in troubled waters' and even spread false rumors to profit from their positions in this case of short-positions, so is that these rumors would fall on deaf ears if there is no basis for their success. And that basis is that the markets, after all who will lend the money, consider some of the fiscally weaker countries of the Eurozone, including Spain, are not doing their homework. Investors demand, playing with the equation risk / profitability, higher returns to countries that provide means assuming more risk, "he commented at Link Securities.
__continúa reading the news in invertia__
| Date: April 23, 2010 | Source: Sergio Jesus |
Go ahead and rate this post Loading ... The Greek Prime Minister Giorgos Papandreou, has confirmed the request by the Hellenic country mercanismo activation of aid designed by the Eurogroup and the International Monetary Fund (IMF).
"It is a national imperative request activation of the mechanism (rescue)," Papandreou said in statements to the media during a visit to the Greek island of Kastellorizo, the Aegean Sea.
Papandreou also confirmed that it has instructed the Minister of Finance of the Hellenic country, George Papaconstantinou, that performs all necessary measures for the implementation of the rescue plan.
Also, the Greek prime minister stressed that in this way, your "friends" contribute "decisively to the construction of the new Greece". "Our colleagues will do the necessary to offer a port where we can keep our ship afloat," he added.
Thus, Papandreou believes that the European Union sends the "strong" message to the markets that can "protect common interests and common currency."
GREEK DEBT RELIEF
The risk premium investors demand to buy Greek debt immediately reflected by Papandreou confirmation of the request for aid to its European partners and the Greek bond spread to ten years for his German counterpart ('bund') down to the 530 basis points, 609 points away from Thursday's close, when it reached a maximum score of 611 integers.
For its part, the cost of insuring against defaults Greek bonds also eased its pressure, backing up 584.9 points from 634 basis points on Thursday. Also in the foreign exchange market the euro recovered some lost ground against the 'greenback' and came to trade at $ 1.3346, up from 1.3283 opening.
Ministers of Economy and Finance of the euro area two weeks ago agreed to make available financial resources of Greece worth at least 30,000 million in bilateral loans, which will be supplemented with another 15,000 million from the IMF.
The latest known on Thursday could have prompted Greece to request activation of the support mechanism. The EU statistical office, Eurostat, yesterday revised upward again Greece's public deficit to place it in 13.6% of gross domestic product (GDP) in 2009, instead of 12.7% initially estimated that the Government of Athens.
Meanwhile, the credit rating agency Moody's Investors Service downgraded the rating of the debt of Greece to 'A3' from 'A2', placing it well under review in the face of possible further cuts to the "significant risk" of debt only may stabilize at a higher cost than expected.
| Date: April 23, 2010 | Source: Sources |
Go ahead and rate this post Loading ... The start of talks with the EU and the IMF does not prevent a new record in the risk premium and default insurance in Greece. Fears are growing worse to the point of shooting the 8.28% interest on its debt to ten years, with a spread of over 500 basis points against Germany. That of Spain is extended to 80 points.
Investors in debt again clearly choose to reduce their risk profile. German debt out of a trend favored returning to punish the peripheral markets.
The risk premium in Greece than today a new historical barrier, that of the 500 basis points. In his rise, bond yields up girego adiez years more than 40 basis points to reach a record, 8.28%.
More details of this publication in the post expansion .
| Date: February 11, 2010 | Source: Sources |
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Yesterday was published in Expansion this article that we found important enough to echo, and in Spain the thing looks ugly, but not Greece ::
In recent weeks there have been many comparisons between the situation of the Spanish economy and the Greek. Economic gurus Nouriel Roubini and Paul Krugman , Joaquin Almunia stated recently as Commissioner of Economic Affairs and the Financial Times , among others, have put both countries in the same bag. But the main economic magnitudes can draw a conclusion: they are not comparable.
True, both states have a large deficit (in the case of Greece 12.7% of GDP in 2009 and in Spain by 11.7% over the same period). This ingredient makes these two economies are now dependent on international funding, but that does not mean their problems and challenges are the same. Now that the European Commission is about to approve the rescue of Greece, is the time to explain the differences between our economy and helena.
1. DEFICIT
The public deficit problem in Greece is not new. According to Jose Luis Martinez Campuzano, a strategist at Citi in Spain, "it is a structural burden the Greek economy has been dragging in the last decade. Since 2000 has maintained an average above 5%. However, in Spain is more cyclical and therefore more manageable. " Remember that Spain met the requirements of the Stability Plan and has even recorded surpluses in the last ten years.
2. DEBT
First, Greek debt doubles the Spanish (113% of GDP from l to 55.2%, respectively). But is that also "the volume of debt in Greece has exceeded the average in the last ten years, 100% of GDP," says Martinez Campuzano. And this is reflected in the markets. The Spanish bond differential with Germany ten years (the reference in Europe) exceeded last week, at its worst, the 100 basis points, while the Greek reached 296 points. Last critical moment, this week both spreads have fallen to 80 and 271 basis points, respectively. Furthermore, the different perception of the markets between a debt and other is also evident in the credit default swaps (CDS) or insurance against the risk of default. According to Citi, the Greek CDS triple the Spanish (the cost of insuring Greek debt stands at 417 basis points to 130 points in Spain). Moody's today said that "Spain's triple A is the strongest of the three" (in reference to Greece, Spain and Portugal). In addition to Juan Ignacio Crespo, director of Thomson Reuters, "the great Greek debt problem is that between April and May due almost half of its outstanding debt. Not planned financial calendar and that is a fundamental error" .
3. ACCESS TO FINANCE
For Martinez Campuzano, "Greece can have a problem accessing finance because markets do not want to buy its debt, but in Spain only a matter of price."
4. UNEMPLOYMENT
It is true that at this point the Spanish economy goes wrong stop on the Helena. Here the unemployment rate exceed 18% in 2009, while in Greece it is only 9%. However, experts do not consider that this represents a major problem for financial markets. "They care less or a more indirect way. They are affected in that it can be a pressure on public spending, institutional instability and a possible breach of the austerity plan. But it is an indirect component, in the end the concern is solvency, "said Jose Antonio Alonso director of the Instituto Complutense de Estudios Internacionales. Although there is no unanimity here. The Financial Times editorializes today about Spain and says the government should worry less about the deficit and unemployment .
5. SIZE
This section is worth recalling the words of the chairman of Santander, Emilio Botin , last week, "comparing Spain and Greece is like comparing Real Madrid to Alcoyano." In fact, Spanish GDP is four times the Greek. This has a double face. "As a larger economy problems can also have consequences far more expensive. This explains why the markets look so intently what happens in Spain," says Alonso. However, at the same time, "this dimension makes it a much stronger economy and a more stable political situation," he adds.
6. CREDIBILITY OF STATISTICS
"No one questions the Spanish statistics, while Europe does not believe the Greek," says Martinez Campuzano. In fact, Brussels has opened a new infringement procedure against the government in Athens on the grounds that "has not fulfilled its obligations to collect and send to the European Commission statistics are accurate." Remember that after coming to power, the Socialists reviewed last October's forecast deficit for 2009 from 3.7% of GDP was estimated at 12,5% spring (finally seems to be 12 , 7%). This triggered the fear of bankruptcy in the markets.
7. Austerity Plan
Furthermore, "the Spanish adjustment plan gives more confidence because it is much more detailed than the Greek," said Alonso. In addition, the credit rating agency Moody's has described as "credible" austerity plan set by the Government . At the same time, said that the rating of Greece can be cut from the current A3 to Baa1. In this sense, today pronounced the Financial Times in an editorial, in which he called the Spanish austerity plan as "serious" .
