Following last week’s bumpy starts over second bailout to Greece, Eurozone finance ministers are pressing ahead to give their final approval to the € 230 billion emergency fund. Time is of crucial factor as Greece has to make € 14.5 billion bond repayment before March 20th or face default. The final meeting that would decide the fate of Greece is scheduled to start at the EU headquarter 1430 GMT onwards on Monday.
Such is the desperation that Premier Lucas Papademos of Greece has already reached Brussels to hold talks with other European leaders. It is believed that the presence of the Greek Prime Minister would lend more weightage to the loan talk. Earlier, Germany had expressed its reluctance on the latest bail-out package to Greece.
The latest deal expects private sector government bond holders to swap their existing old bonds with new bonds. This would bring down the current bond value to about 30 percent. To make it compulsory, the government of Greece is set to pass a new bill this week which would force the bond holders to accept the rate cuts on bonds if they don’t agree volutarily to the new agreement. Besides, a string of other austerity cuts and reforms are waiting to be announced in Greece before the end of this month to appease the concern of its International financial backers.
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