GREECE: Prime Minister Lucas Papademos says he is satisfied with the conclusion of the 130-billion rescue deal agreed with the European Union and IMF

Record ID: 859243

  • Title: GREECE: Prime Minister Lucas Papademos says he is satisfied with the conclusion of the 130-billion rescue deal agreed with the European Union and IMF
  • Date: 23rd February 2012
  • Summary: ATHENS, GREECE (FEBRUARY 22, 2012) (REUTERS) PAPADEMOS LEAVING PAPOULIAS' OFFICE (SOUNDBITE) (Greek) GREEK PRIME MINISTER LUCAS PAPADEMOS SAYING: "In the next few weeks there is much to be done. So that firstly, the required actions for the completion of the final agreement for the loan agreement of the country. Secondly, for the completion of the PSI procedure and third for the final decision to be taken for the financial support and bailout agreement. What I would like to stress on, with the decisions that were already taken and those that will be taken, conditions will be created that will contribute to growth and recovery of the Greek economy." PAPADEMOS' CAR LEAVING PRESIDENTIAL HOUSE PAPADEMOS ARRIVING AT HIS OFFICE/ ENTERING BUILDING
  • Embargoed: 9th March 2012 12:00
  • Keywords:
  • Location: Greece, Greece
  • City:
  • Country: Greece
  • Topics: Economy,Politics
  • Reuters ID: LVALP6PW7ZMNQ3DJQH83I59W5WE
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  • Story Text: Greek Prime Minister Lucas Papademos said on Wednesday (February 22) he was satisfied with final agreement reached over the 130-billion-euro (172 billion U.S. dollar) rescue deal with the European Union and International Monetary Fund.
    Euro zone finance ministers agreed a rescue deal for Greece on Tuesday (February 21) to avert an imminent chaotic default after forcing Athens to commit to unpopular cuts and private bondholders to take bigger losses.
    The complex deal wrought in overnight negotiations buys time to stabilise the 17-nation currency bloc and strengthen its financial firewalls, but it leaves deep doubts about Greece's ability to recover and avoid default in the longer term.
    "They were marathon negotiations, both with private investors and with the eurogroup. The final result was very satisfactory," said Papademos at a meeting with Greek President Karolos Papoulias.
    After 13 hours of talks, ministers finalised measures to cut Athens' debt to 120.5 percent of gross domestic product by 2020, a fraction above the target, securing a second rescue in less than two years in time for a major bond repayment due in March.
    Credit ratings agency Fitch downgraded Greece for a planned bond swap under which it may enforce sharp losses on private holders as part of a rescue package needed to save it from a messy default.
    Greek lawmakers set to work on a flurry of measures demanded by euro zone states in exchange for a 130 billion euro bailout, beset by fresh protests from Greeks exasperated with austerity and a deepening recession.
    "In the next few weeks there is much to be done. So that firstly, the required actions for the completion of the final agreement for the loan agreement of the country. Secondly, for the completion of the PSI procedure and third for the final decision to be taken for the financial support and bailout agreement. What I would like to stress on, with the decisions that were already taken and those that will be taken, conditions will be created that will contribute to growth and recovery of the Greek economy," Papademos told journalists after meeting the President.
    The Fitch downgrade was the first of widely expected cuts from all rating agencies and reflects the fact that Greece will pass into technical default of its liabilities after the transaction is completed, which Finance Minister Evangelos Venizelos said must take place by March 12.
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