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.
TEXT SIZE - +

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

Multimedia Anti-Keystone XL Protests Continue

Demonstrators are worried about pipeline's effect on climate change, their traditional way of life, health and safety More

Thailand's Political Power Struggle Continues

Court gave Prime Minister Yingluck Shinawatra until May 2 to prepare her defense over abuse of power charges but uncertainty remains over election timing More

Malaysia Plane Search Tests Limits of Ocean Mapping Technology

Expert tells VOA existing equipment’s maximum operating depth is around 6 kilometers as operation continues on ocean bed for any trace of MH370 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.
Pet Kangaroo Helps Spread Environmental Messagei
X
Penelope Poulou
April 22, 2014 5:53 PM
Children’s author Julia Heckathorn travels the world to learn about different ecosystems and endangered animals. She pours her knowledge into children’s books, hoping the next generation will right the environmental wrongs of our times. As in many children's books, the main character in Heckathorn's stories is an animal. Unlike those other characters, though, this one is real - a kangaroo, that lives in the author’s backyard. VOA’s Penelope Poulou has more.
Video

Video Pet Kangaroo Helps Spread Environmental Message

Children’s author Julia Heckathorn travels the world to learn about different ecosystems and endangered animals. She pours her knowledge into children’s books, hoping the next generation will right the environmental wrongs of our times. As in many children's books, the main character in Heckathorn's stories is an animal. Unlike those other characters, though, this one is real - a kangaroo, that lives in the author’s backyard. VOA’s Penelope Poulou has more.
Video

Video Pro-Russian Separatists Plan 'Federalization Referendum' in Eastern Ukraine

Pro-Russian separatists in eastern Ukraine say they plan to move forward next month with a referendum vote for greater autonomy, despite the Geneva agreement reached with Russia, the U.S. and Ukraine to end the political conflict. VOA's Brian Padden reports from the city of Donetsk in Eastern Ukraine.
Video

Video Pope Francis Hopes Dual Canonizations Will Reconcile Church

On April 27, two popes - John the XXIII and John Paul II - will be made saints in a ceremony at St. Peter’s Square. VOA religion correspondent Jerome Socolovsky says the dual canonization is part of the current pope’s program to reconcile liberals and conservatives in the Roman Catholic Church.
Video

Video In Capturing Nature's Majesty, Film Makes Case for Its Survival

French filmmaker Luc Jacquet won worldwide acclaim for his 2005 Academy Award-winning documentary "March of the Penguins". Now Jacquet is back with a new film that takes movie-goers deep into the heart of a tropical rainforest - not only to celebrate its grandeur, but to make the case for its survival. VOA's Rosanne Skirble reports.
Video

Video Boston Marathon Bittersweet for Many Runners

Monday's running of the Boston Marathon was bittersweet for many of the 36,000 participants as they finished the run that was interrupted by a double bombing last year. Many gathered along the route paid respect to the four people killed as a result of two bombings near the finish line. VOA's Carolyn Presutti returned to Boston this year to follow two runners, forever changed because of the crimes.
Video

Video International Students Learn Film Production in World's Movie Capital

Hollywood - which is part of Los Angeles - is the movie capital of the world, and many aspiring filmmakers go there in hopes of breaking into the movie business. Mike O'Sullivan reports that regional universities are also a magnet for students who hope to become producers or directors.
Video

Video Pacific Rim Trade Deal Proves Elusive

With the U.S.-led war in Iraq ended and American military involvement in Afghanistan winding down, President Barack Obama has sought to pivot the country's foreign policy focus towards Asia. One aspect of that pivot is the negotiation of a free-trade agreement among 12 Pacific Rim nations. But as Obama leaves this week on a trip to four Asian countries he has found it very difficult to complete the trade pact. VOA's Ken Bredemeier has more from Washington.
Video

Video Autistic Adults Face Housing, Job Challenges

Many parents of children with disabilities fear for the future of their adult child. It can be difficult to find services to help adults with disabilities - physical, mental or emotional - find work or live on their own. The mother of an autistic boy set up a foundation to advocate for the estimated 1.2 million American adults with autism, a developmental disorder that causes communication difficulties and often social difficulties. VOA's Faiza Elmasry reports.
AppleAndroid