Greece bail-out agreed; default avoided for now, says De Jager
Tuesday 21 February 2012
Eurozone finance ministers have reached a deal on a second Greece bail-out after all-night talks, including Dutch finance minister Jan Kees de Jager's demand for strengthened monitoring of Greece's compliance.
De Jager entered the meeting at 4 pm on Monday afternoon, calling for the troika of the European Union, the European Central Bank and the International Monetary Fund to be given a 'permanent position' within Greece to ensure economic reforms are made, according to press reports.
That demand was accepted by the time the meeting ended early on Tuesday morning. 'Monitoring will be stronger than is normally the case with the IMF,' De Jager told the press.
Blocked account
The loan of €130bn will be paid into a blocked account to ensure that after the imminent general election, a new Greek government cannot go back on the deal.
Under the deal, Greece's debt pile will drop to 120.5% of its GDP by 2020. Its private creditors have agreed to take deeper losses on their Greek debts. They have been asked to increase their 'haircut' to 53.5% of the nominal value of their bonds, an increase on their previous maximum of 50%.
'If Greece keeps to this agreement and the parliaments of the eurozone countries ratify it, a Greek default has been avoided for the time being,' De Jager said.
The Dutch parliament is due to vote on the agreement next week.
Eurozone ministers back new bail-out for Greece
© DutchNews.nl
Get the DutchNews.nl newsletter in your mailbox: Click here to subscribe
|
"The loan of €130bn will be paid into a blocked account to ensure that after the imminent general election, a new Greek government cannot go back on the deal."
So essentially, the EU commission is blackmailing the Greek citizen and dictating how they have to vote in their upcoming election. Bye bye sovereignty and choice...who's next?
By AW | February 21, 2012 8:42 AM
'a Greek default has been avoided for the time being' - and nothing more than that. All temporary, very short term thinking and temporary - looks very desperate to me. To be continued.
I feel sorry for the Greek people, really. But I am also a firm believer in controlling your own future and destiny. I sincerely hope we all learn something from this. Money that comes from our governments is generated by legitimate taxes that are paid; it does not fall from the sky and there are no magical treasure chests full of gold.
By Bill | February 21, 2012 9:55 AM
I can not understand anymore the effort for Greece. I have never experienced such a difficult stubbern mentality then the Greeks!! Have you worked with the Greeks not easy to get along with ? Any experience?? The news papers tell a lot for sure they do but burning flags and doing all the propaganda it's not a minority a people!! I will never ever put my foot into Greece if they act like that! They will get even more nasy with the tourists this summer better off in Turkey.
By minnie | February 21, 2012 11:52 AM
What a total disaster to freedom and democracy. The EU are dangerous dangerous people.
By Phil | February 21, 2012 12:41 PM
To make ANY European country undergo such draconian measures to re-finance a debt--this after NO European country in the Euro zone was even given the choice ie. hold a referendum asking if we actually wanted the unified currency to begin with. Am I the only one missing something here? Would the Greeks have defaulted on payments had they still remained with the Drachma? I don't know but billions of Euros needed to be spent to initiate the currency/make all those changes necessary in every Eurozone country. That cost money big time!! I actually hold the politians in Brussels far more responsible for this entire mess than any particular country.
By Michael K | February 21, 2012 3:19 PM
Minnie, contact PVV, they may have a website for your comments.
Bill, very well said. I too feel very sorry for the Greek people caught up in this mess, hopefully the EU will stand by them and with luck and good management they will come out of it stronger and wiser.
By jaycee | February 21, 2012 4:05 PM
A New D-mark-guilder-core Euro would kill the Dutch export industry.
The Dutch and German export industry has over the Euro years earned a lot on the cheap Euro. The key is now shall they pay or shall they pay?? Either bailout the PIIGS etc or kick them out and get higher currency resulting in lower export with even high unemployment. Hard choice, enjoy!!!
By the thinker | February 21, 2012 6:12 PM
Only for now?? A year of agony so that they don't bankrupt for the time?? No political will at all. They just want to prepare themselves better and then on the next occasion kick Greece out withouthuge consequences.
By Foti | February 21, 2012 8:21 PM
What a joke, I hope the Greek people overthrow the government & leave the EU.
This is the USSR all over again, it's a total lack of freedom and democracy.
By Phil | February 22, 2012 1:37 AM
Hi,
Greece bail-out agreed; default avoided for now, says De Jager. May be Mr. De Jager should go to my doctor. My doctor thinks I’m “nuts”. This costs around 500 euro per family, as long as the family exist.
Regards Terence Hale
By Terence Hale | February 22, 2012 7:31 AM
Yes minnie, let's play the racist game once again, that led us to 2 World Wars. Let's fall victims again to this fear mongering mentality and enjoy the fruits of it. Yeah, you doing a good job remaining ignorant exactly as the big money people want you to do and commit to the same mistakes as they have secured their future lives and 3 generations ahead (or they think so).
By alienboy | February 22, 2012 7:56 AM
I sense some double standards. When it comes to decisions made by the Dutch government most commenters here agree that it was the Dutch who voted for these people, so the Dutch are the ones responsible.
Why isn't that same logic applied to Greece? Greece is a democracy. The Greek voted for their government. So in my opinion there is nothing wrong with holding the Greek responsible for the years of mismanagement by their government.
By pepe | February 22, 2012 9:30 AM
For pepe-You have to realize that this government was elected based on the fake promises (the elected prime minister said before the elections that "there are money for everyone"). Since then there were no elections and not even a referendum about all those bailouts and all this austerity. As we speak there are children that are fainting because of the hunger in their classrooms!
So do not "swallow" eveything that the mass media offer you.
By nextone | February 23, 2012 12:08 AM
'a Greek default has been avoided for the time being' - An old saying comes to mind - treat the cause of the problem, not the symptom.
By Dan | February 26, 2012 11:53 PM
Comments have been closed for this article.
|
|
This is not a bailout. This is a conviction to poverty and starvation of the middle and working class, and the un-democratization of a country. The crime against the people of Greece (both greeks and immigrants) is unprecedented. People of Europe should realize this, because more cuts and austerity is coming for everyone. Holland is official in recursion also, just because they made it so through unnecessary cuts.
By Savas | February 21, 2012 8:26 AM