Greece Fine-Tunes PSI and New Loan Agreement

Posted by in Economy

Negotiations on the new loan agreement to Greece look as if they have not be concluded on Tuesday evening as it was planned. The meeting between PM Papademos with the coalition government parties leaders have been postponed again for Wednesday, sometime in the afternoon, Greek media reported.

The Troika will visit Papademos tonight to fine tune the final text of the loan deal. It looks as finding 3.3 billion euro to cut in the private and public sector is a Sisyphus work. How the wages cut in the private sector will help the state revenues is a puzzle that nobody cares to solve.

The final text of 150-160 pages will be handed out to the three party leaders and their approval is needed.

There is some rumors, the Troika might hold separate meeting with each of the political leaders.

Should the new loan agreement be approved, it will be submitted to the Parliament, the voting is expected to take place on Sunday, Feb 12, 2012.

Coalition party leader Samaras expressed his discontent about the delays, while Karatzaferis (LAOS) questioned the legality of the new loan agreement.

IIF head Charles Dallara is leaving Athens on Wednesday. The Greek bond swap (PSI) has been fine tuned too in a meeting between Finance Minister Venizelos, Dallara and Ackerman (Deutsche Bank). Unconfirmed information  speaks of an average interest rate of 3.4 percent.

German Finance Minister Wolfgang Schaeuble said the the Eurogroup meeting will take plac

PS Tomorrow Wednesday a new cold weather front will hit Greece with freezing temperatures and snowfalls. Coincidence?