22 July 2011

Statement of the Council of the European Union on Greece and related matters

The full declaration can be accessed in full here. The relevant stuff boils down to this:


'Could be worse':
"We agree to support a new programme for Greece and, together with the IMF and the voluntary contribution of the private sector, to fully cover the financing gap. The total official financing will amount to an estimated 109 billion euro."
...
"We have decided to lengthen the maturity of future EFSF loans to Greece to the maximum extent possible from the current 7.5 years to a minimum of 15 years and up to 30 years with a grace period of 10 years."
...
"The financial sector has indicated its willingness to support Greece on a voluntary basis through a menu of options further strengthening overall sustainability. The net contribution of the private sector is estimated at 37 billion euro"

'Goes in the right':
"We agree that reliance on external credit ratings in the EU regulatory framework should be reduced, taking into account the Commission's recent proposals in that direction, and we look forward to the Commission proposals on credit ratings agencies."

'Not so good':
"Public deficits in all countries except those under a programme will be brought below 3% by 2013 at the latest."

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