Greek private television ALTER named 8 points from the plan currently under discussion at the Eurozone Summit for the solution of the Greek debt crisis. ALTER cited a Greek high rank official from the banking sector, who spoke under conditions of anonymity. The rescue plan for Greece includes among others:
1) Ensuring Greek loan needs until 2020
2) Doubles the repayment period
3) Loan costs interest rates under 5% for 40 years
4) Buyback from EFSF
5) Debt reduction 12% – 26 billion euro – and option to find other capital sources, for example Chinese
6) Participation of private sector until 2020, with possible extension for 30 years
7) Securing the Greek banking sector with ECB liquidity and EFSF guarantees; there is talk about 25-35 billion euro. Banks will be forced to go on capital increase.
No danger for the bank deposits of the households.
8) Reduced interest rates until 2016
The correspondent of ALTER TV in Brussels reported that the ‘selective default’ will last for a couple of hours or days, and that the appropriate decision will be taken within the next weeks.
Pantelis Oikonomou, alternate Finance Minister, told the TV that with the EU package, there will be no suspension of payments.
So far there is no word about how this rescue plan will affect the society and whether there will be adsitional austerity measures. But I see austerity until I reach my grave lol