News / Europe

Europe Wavers on Terms of Second Greek Bailout

Greek Finance Minister Evangelos Venizelos said there have been no discussion of Greece defaulting on its debts during a news conference in Athens, October 4, 2011.
Greek Finance Minister Evangelos Venizelos said there have been no discussion of Greece defaulting on its debts during a news conference in Athens, October 4, 2011.

European leaders are wavering on the terms of their planned second international bailout of debt-ridden Greece because of the country's worsening financial condition.

One key European financial leader, Luxembourg Prime Minister Jean-Claude Juncker, suggested Tuesday that private creditors will have to take bigger losses on the Greek loans they hold, part of the $211 billion bailout approved in July, on top of last year's $159 billion in international assistance. The private Greek bond holders were originally targeted for 21 percent losses on their investments, but some analysts say the figure could rise to 50 percent.

Juncker said Greece's financial plight had worsened since mid-summer, but declined to elaborate exactly how the bailout terms might be altered. Meanwhile, European finance ministers put off a decision on whether to hand Greece another $11 billion segment of last year's bailout after the Athens government conceded this week that it would not meet deficit targets it agreed to with its international creditors.

For weeks, Greece has said that without a cash infusion it could default this month. But Greece said Tuesday the country can survive financially until mid-November.

Greece's finances have roiled world financial markets for weeks, as investors worry about the effects of a possible Greek default. International investment banker Goldman Sachs cut its estimate of global economic growth and predicted recessions in Europe's two largest economies, Germany and France.

Asian and European stock markets plunged for the second straight day Tuesday, with indexes in London, Paris and Frankfurt all falling about 3 percent or more.

Some countries in the 17-nation bloc of countries that use the common euro currency, especially in northern Europe, have voiced increasing discontent with providing more aid for Greece. One of them, Finland, won a small concession from the continent's finance ministers, allowing it to require Greece to post collateral before Helsinki would agree to hand the Greek government more money.

Finland will get Greek bonds as collateral, but may not be able to collect proceeds from them for as much as 30 years.

Greece has imposed a series of austerity measures, including spending cuts and tax hikes. Many Greeks are weary of the new measures, however, that have eliminated government jobs and cost them more money.

The government's proposed 2012 budget includes elimination of 30,000 more government jobs by the end of next year.

Some information for this report was provided by AP, AFP and Reuters.

You May Like

Video Miami Cubans Divided on New US Policy

While older, more conservative Cuban Americans have promoted anti-Castro political movement for years, younger generations say economically, it is time for change More

2014 Sees Dramatic Uptick in Boko Haram Abductions

Militants suspected in latest mass kidnapping of over 100 people in Gumsuri, Nigeria on Sunday More

Video Cuba Deal Is Major Victory for Pope

Role of Francis hailed throughout US, Latin America - though some Cuban-American Catholics have mixed feelings More

This forum has been closed.
Comments
     
There are no comments in this forum. Be first and add one

Featured Videos

Your JavaScript is turned off or you have an old version of Adobe's Flash Player. Get the latest Flash player.
Sudan School Becomes Target of Aerial Attacksi
X
December 19, 2014 12:45 AM
The school dropout rate is at an all-time high in Sudan's South Kordofan state because many schools have been destroyed during the three-year civil war between the government and SPLA-N rebel forces. Adam Bailes visited Sudan's Nuba Mountains' region and reports many children are simply too scared to go to school
Video

Video Sudan School Becomes Target of Aerial Attacks

The school dropout rate is at an all-time high in Sudan's South Kordofan state because many schools have been destroyed during the three-year civil war between the government and SPLA-N rebel forces. Adam Bailes visited Sudan's Nuba Mountains' region and reports many children are simply too scared to go to school
Video

Video VOA Reporter Tours Devastated Peshawar School

Islamist militants wearing military uniforms and strapped with explosives attacked a military run school Tuesday in the northwestern Pakistani city of Peshawar. At least 141 people were killed in the horrific attack, most of them young students. VOA reporter Ayaz Gul visited the devastated school and attended the funeral of the principal who courageously tried to save her students from the deadly attack.
Video

Video Nigerians Fleeing Boko Haram Languish in Camp Near Capital

In its five-year effort to impose Islamic law in northeastern Nigeria, the Boko Haram extremist group has killed thousands of people and forced hundreds of thousands to flee. Some of those who ran for their lives now live in squalor on the edges of the capital, Abuja. Chris Stein reports for VOA.
Video

Video Putin Says Russian Economy Will Emerge Stronger

Russian President Vladimir Putin has said his country's sinking economy will not only recover but also become stronger, despite falling oil prices and Western sanctions over Ukraine. VOA's Daniel Schearf reports.
Video

Video Detained Turkish Journalists Follow Teachings of US-Based Preacher

The Turkish government’s jailing of critical journalists has sparked international condemnation and is being seen as an effort to undermine the followers of an ailing Turkish preacher based in the United States. VOA religion reporter Jerome Socolovsky has more.
Video

Video ‘Anti-Islamization’ Marches Increase Tensions In Germany

Anti-immigrant rallies in Germany have been building in recent weeks, peaking Monday night in the city of Dresden where tens of thousands of people turned out to demonstrate against what they call the ‘Islamization’ of the West. Germany has offered asylum to more Syrian refugees than any other country, and this appears to have set off the protests. Henry Ridgwell reports from London.
Video

Video Aceh Rebuilt Decade After Tsunami, But Scars Remain

On December 26, 2004 there was an earthquake in the Indian Ocean so powerful it caused the Earth’s axis to wobble a few centimeters. Onshore on the island of Sumatra, the resulting tsunami was devastating. A decade later, VOA Correspondent Steve Herman reports from Banda Aceh, Indonesia, where although there is little remaining evidence of the physical devastation, the psychological scars among survivors remain.
Video

Video Refugees Living in Kenya Long for Peace in the Home Countries

Kenya is host to numerous refugees seeking safe haven from conflict. Immigrants from Somalia face challenges in their new lives in Kenya. Ahead of International Migrants Day (December 18) Lenny Ruvaga has more for VOA News from the Kenyan capital.

All About America

AppleAndroid