Broadgate: Market News 15/2
15 February 2012
European officials would like Greece to be presently seen as a special case, to comfort global investor and lenders while the other weak economies in the euro currency union will not in the end require their own debt write down.
Officials are concerned that worries of additional debt renegotiations will extend the sense of doubt and disaster that has overwhelmed the euro zone fiscal system for nearly three years.
The European officials are increasing stress on Greece to deliver budget cuts and succeed a second rescue package worth of 130 billion Euros ($171 billion) all along with approximately 100 billion Euros of debt aid from their private bondholders.
Euro zone finance ministers yesterday increased the pressure on Greece to maintain its budgetary agreement, calling off a planned today’s meeting in Brussels and come to a decision as an alternative to organize it by teleconference.
The growth in the euro was limited prior to European finance ministers present a second rescue for Greece, also unresolved issue in addition is how the European Central Bank intends to handle its assets of 55 billion Euros in the Greek bonds.
China has offered remarks for an encouragement to European finance ministers, who are escalating pressure on Greece to bring budget cuts in exchange for a second rescue plan.
China can use 3 ways to help which are the central bank, China Investment Corp., the nation’s sovereign wealth fund, and banks including China Development Bank and Export-Import Bank of China.
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