Greece given new deadline to hit bailout milestones - as it happened

Discussion in 'Market News' started by Lily, Nov 10, 2015.

  1. Lily

    Lily Forum Member

    Aug 29, 2015
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    Eurozone ministers have given Greece a few more days to deliver reforms, and unlock billions of euros of loans and new capital for its banks

    8.24pm GMT

    Here’s our latest news story on today’s developments:

    Related: Greece told to do more on reforms before it gets next bailout payment

    7.53pm GMT

    The eurozone’s finance ministers have now issued a statement following today’s meeting.

    It confirms that the Eurogroup called on the Greek authorities to finalise the financial sector measures, as well as the legislation agreed under the first set of milestones, in the course of the week.

    #Eurogroup main results on #Greece: #economy #banking

    7.27pm GMT

    One late development... Greece’s cabinet will meet on Tuesday at 10.30am (local time) at parliament, the prime minister’s office has announced.

    That’s via the ANA newswire.

    7.26pm GMT

    #Greece has until next Monday to agree on measures to unlock the disbursement of 2bn€ bailout funds and 10bn€ bank recap funds. #Eurogroup

    7.17pm GMT

    So, to recap...

    Greece has been given until the end of the week to deliver on the outstanding measures agreed with its creditors, so new bailout funds can be handed over.

    The next thing to do is have all the financial sector measures in place before the completion of the recapitalisation process.

    Our Greek colleague, Euclid Tsakalotos, gave his commitment that this will be done.

    6.52pm GMT

    And that’s the end of the press conference - all over quite quickly.

    1st time we have an Eurogroup on #Greece where the journalists have no needed to exhaust the time for questions t press conference #nodrama

    6.48pm GMT

    Onto questions: Why is the eurozone refusing to compromise and protect more less wealthy Greeks from the new laws on foreclosures?

    Pierre Moscovici explains that the Greek banking sector must take action on bad loans if it is to become healthy and credible.

    6.43pm GMT

    Jeroen Dijsselbloem’s media team have tweeted that Greece has until the end of the week to meet the remaining milestones:

    At presser#eurogroup: mandated EWG to reconvene not later than beginning next week to take stock regarding implementation #greece

    The #Eurogroup welcomes the commitment of the Greek authorities to fulfill the required measures in the course of the week. #Greece

    6.37pm GMT

    As expected, #ESM head says the actual funding to #Greece will be lower than the €86 bln initially foreseen. #economy #markets #ec #imf #ecb

    6.36pm GMT

    Klaus Regling, head of the ESM, speaks briefly - and confirms that Greece’s banking sector needs less fresh capital than previously feared.

    That means the final bailout bill will probably be less than 86bn euros.

    6.35pm GMT

    Reuters has seen a statement from the eurogroup, which confirms that money will not be handed over to recapitalise Greece’s banks until Athens has hit all the milestones agreed with its creditors.

    The statement also notes that Athens has pledged to meet the conditions this week.

    “We await the finalisation of all the measures in the first set of milestones and the financial sector measures which are essential for a successful recapitalisation process.”

    6.28pm GMT

    EU commissioner Pierre Moscovici is also attending the press conference -- he says four-fifths of Greece’s milestones have been achieved.

    .@pierremoscovici - We are 80% of the way there on #Greece milestones. @EEAthina

    6.27pm GMT

    Unresolved issues include: governance of banks and household insolvency, #Eurogroup President says on #Greece. #economy

    6.26pm GMT

    Reminder: you can watch the press conference here.

    6.26pm GMT

    On other issues, Dijsselbloem declares that the recovery in the eurozone is continuing.

    6.26pm GMT

    Dijsselbloem begins by telling reporters in Brussels that “a lot of progress has been” achieved by Greece, in a very cooperative process.

    He singles out the work towards recapitalising Greece’s banks, which is a key milestone in the bailout deal.

    Beyond the nice words, #Eurogroup gives #Greece 5 days to reach agreement with the Quadriga or else banks' recapitalization is in question.

    6.18pm GMT

    The press conference is getting underway now.

    We’re about to hear whether Greece has been handed its next aid tranche (unlikely), along with what progress was made on those other areas such as Spain, monetary union, and the euro economy.

    At start of presser, both @J_Dijsselbloem and @pierremoscovici grinning goofily. Not sure why. #eurogroup

    6.07pm GMT

    Brussels is overwhelmed with press conferences tonight -- ministers are also discussing the refugee crisis in one room, and the problems of the steel industry in another one.

    #EU press conference train crash! @EUCouncilPress announces #eurogroup presser imminent, but @eu2015lu still briefing on #refugeecrisis

    6.03pm GMT

    Sounds like the press conference is starting soon!

    Eurogroup: Press conference in a few minutes (main press room), live on

    6.02pm GMT

    While we wait for tonight’s Eurogroup press conference, here are some photos from this afternoon’s meeting:

    5.52pm GMT

    Kathimerini’s reporter in Brussels, Eleni Varvitsiotis, has details from the eurogroup meeting.

    She’s heard that euro finance ministers will ask their deputies to resume talks with Greece over the remaining milestones needed before its bailout tranche can be paid.

    #Eurogroup stands ready support disbursement to #Greece provided conditionality is met & has given mandate to EWG to reconvene by Fri 13/11

    5.30pm GMT

    More from Greece:

    HCMC to extent short selling ban on #Greece bank stocks by one month (via @euro2day_gr) #economy #banking #markets

    5.03pm GMT

    A downbeat start to the week for European markets was made worse once Wall Street opened and US shares began a rapid slide. Poor Chinese trade data set the tone early on, along with reports that Greece would not get its latest tranche of bailout funds at today’s Eurogroup meeting. To add to the gloomy mood, the OECD cut its global growth forecasts.

    The prospect of a US rate rise in December, despite the continuing worries about a slowdown in global growth, sent American markets sharply lower and caused the falls in Europe to accelerate. The final scores showed:

    3.54pm GMT

    Despite the differences between Greece and its creditors over foreclosures, MNI is reporting that the country could present updated proposals at the europgroup meeting. MNI reports:

    The disagreements pushed [Greek prime minister Alexis] Tsipras to have a round of calls over the weekend with Germany’s Chancellor Angela Merkel, France’s President Francois Hollande and European Commission President Jean-Claude Juncker and asked them for a political solution on the issue.

    A Greek government official told MNI that Tsipras found “sympathetic ears” and that an updated proposal from the Greek side would be presented during the Eurogroup meeting and could bring a deal.

    3.47pm GMT

    Elsewhere Fitch has cut its rating on Volkswagen from A to BBB+ with a negative outlook, in the wake of the emissions scandal. The ratings agency said:

    The downgrade reflects the corporate governance, management and internal control issues highlighted by the ongoing emission test crisis related to up to 11 million diesel-powered vehicles.

    Fitch already incorporated the group’s relatively weak corporate governance in its ratings but we believe that the emergence of a fraud of this magnitude, going either unnoticed or uncorrected by top management for so long is not consistent with a rating in the ‘A’ category. Volkswagen’s recent admission that it understated carbon dioxide emissions on 800,000 vehicles reinforces this view and highlights the fundamental issue of internal control failure within the group.

    3.07pm GMT

    Here’s what finance ministers are due to discuss at today’s Eurogroup meeting, and it’s not just Greece on the agenda:

    There will be an update from the single resolution board, which will be in charge of preparing and carrying out the resolution of any euro area bank in trouble from next January.

    2.58pm GMT

    A fairly downbeat day for European markets has been echoed in early trading across the Atlantic.

    On Wall Street the Dow Jones Industrial Average is currently down 126 points or 0.7%, following the poor trade data from China earlier and news that the OECD had cut its global growth forecasts. The prospect of higher US interest rates in December, following Friday’s stronger than expected non-farm payroll numbers, is also a factor.

    2.35pm GMT

    Time for a quick recap.

    #Tsipras & creditors clash over foreclosures as #Eurogroup meets. Lingering sense of deja-vu but we're far away from #Greece crisis climax.

    2.13pm GMT

    Slovakia’s finance minister, Peter Kažimír, was one of Greece’s more vocal critics last summer.

    He sounds slightly more upbeat today, pointing out that last month’s stress tests showed Greek banks weren’t in as bad shape as feared.....

    Recently we had some positive news coming from #Greece – I mean the banks’ stress tests results #eurozone #Eurogroup

    However, we are, yet again, a bit behind the schedule #eurozone #Greece

    There are still issues holding up release of the 2 billion euro tranche and the review itself #Greece #eurozone #EU

    1.59pm GMT

    Schaeuble says conditions aren't "such that we can reach an agreement" today on #Greece. Ah, I miss these #Eurogroup meetings. Noooooooot.

    1.58pm GMT

    Valdis Dombrovskis, the EC vice-president in charge of the euro, is speaking to reporters outside the meeting.

    He says he visited Athens two weeks ago, and saw that the Greek government is committed to implementing its bailout programme.

    1.57pm GMT

    Wolfgang Schauble also flagged up that Greece has not yet implemented its new privatisation fund.

    This was a key part of July’s bailout deal, under which €50bn of Greek assets will be sold off to cover the cost of recapitalising its banking sector.

    FinMin #Schäuble bei #Eurogroup über #Griechenland: "Großteil der Reformen noch nicht erfüllt".Plan für Privatisierungsfonds liegt nicht vor

    1.49pm GMT

    Germany’s Wolfgang Schäuble has arrived at the meeting.

    Laconic Schäuble over #Greece: "I don't think we can have an agreement today but we'll hear what the Institutions have to say".

    1.40pm GMT

    Here’s the key quote from Eurogroup chief Dijsselbloem, confirming that Greece won’t get its €2bn today:

    “The 2 billion will only be paid out once the institutions give the green light and say that all agreed actions have been carried out and have been implemented. That still has not happened.”

    1.38pm GMT

    Some reaction to Jeroen Dijsselbloem’s comments as he arrived at the eurogroup meeting:

    Dijsselbloem used the word 'optimistic'!!

    Dijsselbloem did not sound negative on #Greece and did not mention foreclosures specifically. (smart)

    1.28pm GMT

    An official limo has just deposited Eurogroup president Jeroen Dijsselbloem at today’s meeting.

    Eurogroup's Dijsselbloem: Does not see Greek disbursement today

    'time is limited, we need to finish the 1st set of milestones as soon as possible' says #Eurogroup @J_Dijsselbloem for #Greece

    1.01pm GMT

    Ministers are starting to arrive at today’s Eurogroup meeting in Brussels.

    The moves are positive. Most of the milestones are already adopted or decided. There is still a way to go.

    We are not yet completely there, but I am hopeful and confident that with the spirit of compromise, with good co-operation with the authorities we can make it... if not today then in the days to come.

    I'll update #Eurogroup on the state of play on #Greece. Dynamic remains positive. Agreement can be reached in the coming days @EU_Commission

    12.37pm GMT

    Shares are falling sharply on the Lisbon stock market, as investors react to the latest political upheaval in Portugal.

    The main stock index, the PSI 20, has shed more than 2%, as the country’s socialist parties prepare to oust the centre-right administration sworn in two weeks ago.

    Tired of following #Greece? Here you go: #Portugal's Socialists forge alliance to oust govt & reverse spending cuts.

    12.15pm GMT

    Now here’s a thing. Greece is apparently hoping to return to the financial markets next year.

    Government insiders have told the Financial Times that plans are afoot to sell debt in the capital markets in 2016.

    It won’t be in the first quarter but summer has been talked about,” said a person familiar with the situation.

    “It depends on a positive chain reaction of events but discussions have been held.”

    Jesus wept. Will people never learn? RT @FGoria: Greece plans a return to capital markets

    If you held 2017 bond since issue in July 2014, seems you've had a 6%ish return. Plus several heart attacks

    12.05pm GMT

    European Commissioner president Jean-Claude Juncker has just welcomed eurogroup president Jeroen Dijsselbloem to his office, for talks ahead of this afternoon’s meeting of finance chiefs.

    Dijsselbloem got the tradition greeting:

    They're baaack #Junckerkiss #Dijsselbloem #Greece

    11.48am GMT

    Peter Rosenstreich, head of market strategy at Swissquote Bank, says investors need to pay attention to Greece again:

    Rosenstreich is worried that Athens and its eurozone neighbours couldn’t reach agreement on how to handle the repossession of houses from people who are in default on their mortgages.

    Left-wing Syriza is concerned that the high threshold will expose too many Greece citizens to the loss of their primary properties. In addition, Athens is balking at a 23% take rate on private schools.

    This feels like a repeat of 8-months ago. The whole world understood that the third bailout agreement made was unsustainable. It was only a matter of time before it unraveled.

    11.35am GMT

    Getting back to Greece...

    AFP’s man in Brussels, Danny Kemp, has heard that the outstanding issues between Greece ands its creditors *might* be resolved in a few days.

    No Greek bailout payment today but approval likely* at Euro Working Group level this week, sources saying. *conditions apply

    11.09am GMT

    The OECD has also cut its forecast for global growth this year to 2.9%, down from 3%, due to the sharp slide in trade.

    It also predicts growth of 3.3% in 2016, down from 3.6% previously.

    OECD cuts global growth forecast (again) to 2.9% on unusually weak global trade.

    OECD cuts global growth f'cast to 2.9 for 2015, 3.3% for 2016, from 3.0 and 3.6 in Sept. Sept (left) and Nov tables

    10.56am GMT

    The two demonstrators who disrupted David Cameron’s speech have revealed they created a fictitious company to get into the CBI’s flagship event:

    Student protesters who heckled David Cameron boast it was 'easy' to get into #CBI by setting up fake company

    Exclusive Interview with the students who interrupted Cameron coming soon on Sky. They got CBI accreditation by setting up a fake company.

    10.44am GMT

    The OECD’s latest economic outlook is online here.

    All the new OECD material here: with a link to previous forecasts too:

    10.38am GMT

    The OECD has just released its latest economic projections.

    And the Paris-based thinktank has warned that global growth is threatened by the impact of China’s slowdown on world trade, but raised its forecast for US growth.

    “The slowdown in global trade and the continuing weakness in investment are deeply concerning. Robust trade and investment and stronger global growth should go hand in hand.”

    OECD worried abt trade: "Growth rates of global trade observed so far in 2015 have, in the past, been associated with global recession."

    New OECD fcasts vs June f'casts: UK little changed, US stronger this yr, weaker next, OECD countries weakr in 2016

    10.32am GMT

    Greece’s economy minister, George Stathakis, has suggested that eurozone governments might have to take a ‘political decision’ on whether Greece should get its €2bn aid tranche.

    Stathakis told Real FM radio that talks with officials over how to enforce foreclosure laws have run their course:

    The thorny issue is the distance that separates us on the issue of protecting primary residences.

    “I think the negotiations we conducted with the institutions has closed its cycle .. so it’s a political decision which must be taken.

    10.10am GMT

    Two eurozone officials have told the Wall Street Journal that there’s no chance that Greece will get its €2bn bailout loan at today’s eurogroup meeting.

    That won’t please Michel Sapin, given his optimistic comments earlier. But it appears that Greece simply hasn’t done enough to satisfy lenders....

    Senior officials from the currency union’s finance ministries were updated on Greece’s implementation of around 50 promised overhauls, known as milestones, during a conference call Sunday afternoon. While progress has been made on some issues—including measures to substitute a tax on private education, the governance of the country’s bailed-out banks and the treatment of overdue loans—Athens and its creditors will need more time to sign off on all overhauls, the officials said.

    Greece needs the fresh loans to pay salaries and bills and settle domestic arrears. However, the government faces no immediate major payments to its international creditors, reducing the sense of urgency.

    It'll b 1 exciting #Eurogroup 2day:Eurozone finance ministers won’t release EUR2 billion loan to Greece @v_dendrinou

    10.05am GMT

    Drama at the CBI conference!

    David Cameron’s speech has been briefly disrupted by protesters, chanting that the CBI is the “voice of Brussels”.

    'CBI - voice of Brussels' say protestors who stand up in middle of audience interrupting PM speech

    hecklers from anti-EU group hold up and interrupt PM's CbI speech saying "CBI voice of Brussels"... PM says "c'mon ask a question"

    10.01am GMT

    Another important meeting is taking place in Brussels today.

    UK business secretary Sajid Javid will discuss the crisis in Britain’s steel works with EU economy and industry ministers this afternoon.

    Related: Steel crisis: UK business secretary to meet EU ministers

    9.57am GMT

    David Cameron is telling the CBI that he’s met business concerns, by cutting red tape and corporate taxes.

    Related: Cameron speaks to the CBI - Politics live

    9.52am GMT

    Heads-up: prime minister David Cameron is addressing the CBI’s annual conference in London. There’s a live feed here.

    He’s expected to warn that he could consider campaigning to leave the EU, if his attempts to reform Britain’s relationship with Brussels is met with a ‘deaf ear’.

    WATCH LIVE: David Cameron to address CBI's annual conference in London

    9.34am GMT

    The prospect of yet another tussle over Greece’s bailout programme is casting a pall over Europe’s stock markets this morning.

    The main indices are mainly in the red, as investors prepare to hear the dreaded phrase ‘eurogroup deadlock’ again.

    The country’s next €2 billion tranche, which should be signed off at today’s Eurogroup meeting, is currently being withheld by Greece’s creditors, who are dissatisfied with the way the region’s hot potato has (or hasn’t) implemented the required reforms.

    9.15am GMT

    It’ Déjà vu all over again, as China’s stock market is pushed up by stimulus hopes, and Greece’s bailout hits a snag.

    Shanghai Comp continues its recent positive trend and the Eurogroup are meeting to discuss Greece - welcome to 8 months ago

    9.08am GMT

    Open Europe analyst Raoul Ruparel points out that today’s dispute is small potatoes, compared to the big challenge of cutting Greece’s debt pile.

    Sigh. And all this before we even get into discussions on debt relief which are infinitely harder

    9.03am GMT

    Greece is also clashing with its creditors over plans to hike the tax rate for private education, as the Telegraph’s Mehreen Khan explains:

    Greeks already stumbling at first hurdle. No bail-out cash today - here's why

    8.54am GMT

    France is playing its traditional role as Greece’s ally, ahead of today’s meeting of eurozone finance chiefs.

    Greece is making considerable efforts. They are scrupulously respecting the July agreement.

    One thorny issue remains: the seizure of homes for households who can’t pay their debts. I want an agreement to be reached today. France wants an agreement today.

    France Finmin Sapin: Greece has made "considerable efforts." Wants deal at Eurogroup meeting today.

    8.47am GMT

    Greek journalist Nick Malkoutzis of Kathimerini tweets that the gloss is coming off Alexis Tsipras’s new administration:

    No tranche for #Greece at today's Eurogroup. This govt's limitations are already starting to show at home & abroad

    8.37am GMT

    The prospect of a new anti-austerity government taking power in Portugal is hitting its government debt this morning.

    The yield (or interest rate) on 10-year Portuguese bonds has risen from 2.67% to 2.77%, a ten-week high.

    8.27am GMT

    This new dispute over Greece’s bailout comes three days before unions hold a general strike that could bring Athens to a standstill.

    The main public and private sector unions have both called 24-hour walkouts for Thursday, to protest against the pension cuts and tax rises contained in its third bailout deal.

    8.15am GMT

    The Dow Jones newswire is reporting that eurozone finance ministers definitely won’t agree to release Greece’s next aid tranche at today’s meeting, due to the lack of progress over its bailout measures:

    8.15am GMT

    #Eurozone Finance Ministers Won't Release €2bn Loans Slice for #Greece at Monday #Eurogroup Meeting ~Officials via DJ

    8.11am GMT

    Greek officials have already warned that the argument over legislation covering bad loans won’t be resolved easily.

    One told Reuters that:

    There is a distance with lenders on that [foreclosure] issue, and I don’t think that we will have an agreement soon.

    7.53am GMT

    After a couple of quiet months, Greece’s debt crisis has loomed back into the spotlight today.

    The key stumbling block is primary residence foreclosures.

    Greece has put forward stricter criteria that protects 60 percent of homeowners, while suggesting that this is then gradually reduced over the next years.

    7.26am GMT

    Good morning, and welcome to our rolling coverage of the world economy, the financial markets, the eurozone and business.

    Across the globe, investors are finally facing the prospect that the long run of record low interest rates is ending, at least in America.

    Market now thinks there is a 70% chance of a Fed hike in December

    Our European opening calls: $FTSE 6368 up 14 $DAX 11037 up 49 $CAC 5009 up 25 $IBEX 10480 up 27 $MIB 22613 up 83

    Portuguese Socialist party to vote to oust minority government

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