by Calculated Risk on 6/17/2011 08:39:00 AM
Friday, June 17, 2011
Morning Greece: Merkel Agrees to "voluntary participation of private creditors"
From the NY Times: Germany Backs Down From Confrontation With E.C.B. Over Greece
Germany backed away Friday from a confrontation with the European Central Bank over a new bailout package for Greece, agreeing under pressure from France not to force private investors to shoulder some of the burden.I wonder how much pressure there will be on the private creditors? And how long will "voluntary" remain "voluntary"?
...
“We would like to have a participation of private creditors on a voluntary basis,” Mrs. Merkel said at joint news conference with Mr. Sarkozy.
“This should be worked out jointly with the E.C.B.,” she added. “There shouldn't be any dispute with the E.C.B. on this.”
The Greek 2 year yield is off sharply to 28.2%. Seems strange to say the yields have fallen to 28.2%!
The ten year yields are down to 17.1%.
From the WSJ: Greece Reshuffles Cabinet
Greece's embattled Socialist government announced a sweeping cabinet reshuffle Friday, replacing the country's finance minister in an effort to shore up support for unpopular economic reforms.I think being "unpopular" is part of Greek finance minister's job.
In a statement, spokesman George Petalotis said the government had appointed Evangelos Venizelos as finance minister, replacing George Papaconstantinou.