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

UN Watchdog Urges Israel to Probe Possible Gaza War Crimes

More than 2,100 Palestinians, most of them civilians, were killed in a 51-day war in Gaza, along with 67 Israeli soldiers and six civilians in Israel More

New Kenyan 'Thin SIMs' Poised to Transform African Mobile Money

Equity's new technology is approved in African nation for one-year trial, though industry leader Safaricom says thin SIMs could lead to data theft and fraud More

Solar's Future Looks Brighter

New technology and dropping prices are contributing to a surge in solar power 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.
Talks to Resume on Winter Gas for Ukrainei
X
Al Pessin
October 25, 2014 4:21 PM
Ukrainian and Russian officials will meet again next week in an effort to settle their dispute over natural gas supplies that threatens to leave Ukraine short of heating fuel for the coming winter. VOA’s Al Pessin reports from London the dispute is complex, and has both economic and geopolitical dimensions.
Video

Video Talks to Resume on Winter Gas for Ukraine

Ukrainian and Russian officials will meet again next week in an effort to settle their dispute over natural gas supplies that threatens to leave Ukraine short of heating fuel for the coming winter. VOA’s Al Pessin reports from London the dispute is complex, and has both economic and geopolitical dimensions.
Video

Video Smugglers Offer Cheap Passage From Turkey to Syria

Smugglers in Turkey offer a relatively cheap passage across the border into Syria. Ankara has stepped up efforts to stem the flow of foreign fighters who want to join Islamic State militants fighting for control of the Syrian border city of Kobani. But porous borders and border guards who can be bribed make illegal border crossings quite easy. Zlatica Hoke has more.
Video

Video China Political Meeting Seeks to Improve Rule of Law

China’s communist leaders will host a top level political meeting this week, called the Fourth Plenum, and for the first time in the party’s history, rule of law will be a key item on the agenda. Analysts and Chinese media reports say the meetings could see the approval of long-awaited measures aimed at giving courts more independence and include steps to enhance an already aggressive and high-reaching anti-corruption drive. VOA’s Bill Ide has more from Beijing.
Video

Video After Decades of Pressure, Luxembourg Drops Bank Secrecy Rules

European Union finance ministers have reached a breakthrough agreement that will make it more difficult for tax cheats to hide their money. The new legislation, which had been blocked for years by countries with a reputation as tax havens, was approved last week after Luxembourg and Austria agreed to lift their vetoes. But as Mil Arcega reports, it doesn’t mean tax cheats have run out of places to keep their money hidden.
Video

Video Kobani Refugees Welcome, Turkey Criticizes, US Airdrop

Residents of Kobani in northern Syria have welcomed the airdrop of weapons, ammunition and medicine to Kurdish militia who are resisting the seizure of their city by Islamic State militants. The Turkish government, however, has criticized the operation. VOA’s Scott Bobb reports from southeastern Turkey, across the border from Kobani.
Video

Video US ‘Death Cafes’ Put Focus on the Finale

In contemporary America, death usually is a topic to be avoided. But the growing “death café” movement encourages people to discuss their fears and desires about their final moments. VOA’s Jerome Socolovsky reports.
Video

Video Ebola Orphanage Opens in Sierra Leone

Sierra Leone's first Ebola orphanage has opened in the Kailahun district. Hundreds of children orphaned since the beginning of the Ebola outbreak face stigma and rejection with nobody to care for them. Adam Bailes reports for VOA about a new interim care center that's aimed at helping the growing number of children affected by Ebola.

All About America

AppleAndroid