Thursday, June 30, 2011

Dangers lurk beyond Greek parliament vote

June 30, 2011

The Greek parliament was set to approve detailed austerity and privatization bills on Thursday to secure emergency funds and avert imminent bankruptcy, but longer-term dangers still lurk.

The euro and global stocks rose after Wednesday's first vote to adopt a five-year austerity plan despite fierce public opposition to more pay and spending cuts, as investors expressed relief an immediate meltdown had been avoided.

Belgian Finance Minister Didier Reynders said, as a result, euro zone finance ministers were likely to agree to release a next tranche of loans to Greece at a meeting Sunday.

That 12 billion euro loan will prevent Greece defaulting in mid-July or at the latest on August 20, when it must honor a big bond redemption, and shift the focus to a second assistance package likely to be about the same size as last year's 110 billion euro bailout.


No comments: