RBS and Santander opt for a 21% to 67% Haircut on their Greek Bonds
If you are curious as to how come the cost could be as much as 67%, please see the article linked earlier from The Market Oracle, repeated here. I quote:
Also from the same report, is this, on the bailout by Britain's taxpayers of the Bank of Ireland on which I posted last weekend:
Of course, from a British taxpayer's point of view, the extra interest is the premium always required for loans of a riskier nature. A point Greek PM Papandreou, missed when boasting yesterday, to his party faithful, that Greece was borrowing at rates just above those of Germany, the
This evening, as warned on this blog 24 hours ago, the Cyprus government has resigned and appears likely to be the next Euro Group member to require a bailout.
Meantime the warning from the IMF to France is now receiving coverage in Europe, read here, a quote:
"France cannot risk missing its medium-term fiscal targets, given the need to strengthen implementation of the Stability and Growth Pact and keep borrowing costs low by securing France's AAA rating," the IMF report stated.
With one of the highest overall tax rates in Europe, France's best solution would be to reduce government spending in areas of health care and pensions to meet its medium-term targets, the IMF recommended. They at the same time urged the government to lower the taxes on labour, in an attempt to elevate France's competitiveness and tackle structural unemployment.
Labels: France, Greek Bailout 2.0, IMF, RBS
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