Titoli di Stato area Euro GRECIA Operativo titoli di stato - Cap. 1

[tommy271]

UPDATE 1-Greece to sell 1.25 bln eur 6-month T-bills May 10

2011-05-06 11:54:26 GMT (Reuters)





* PDMA needs to roll over 480 mln eur of T-bills on May 13
* Settlement date May 13

(Adds details, background)


ATHENS, May 6 (Reuters) - Greece will auction 1.25 billion euros ($1.81 billion) of 26-week T-bills on May 10, continuing its monthly short-term debt sales amid record high bond yield spreads, the country's debt agency (PDMA) said on Friday.
Greece switched to monthly issues of short-term debt from quarterly sales in September last year to improve cash management as it struggles to emerge from a debt crisis.
Up until March, the heavily indebted country was funding itself on short durations at a lower cost than the 5.2 percent rate on its EU/IMF bailout loans. A summit of euro zone leaders in March agreed to cut the rate by one percentage point and stretch out the repayment period.

PDMA needs to roll over 480 million of six-month paper maturing on May 13 and another 480 million of three-month T-bills on May 20.
Last month, Greece sold 1.625 billion euros of six-month T-bills at 4.80 percent, with the yield rising by five basis points from a March sale.

Foreign investors bought about 41 percent of the issue.
PDMA said the settlement date for the 26-week T-bill auction will be May 13. Only primary dealers will be allowed to participate and no commission will be paid.
The agency said non-competitive bids up to 30 percent of the auctioned amount may be submitted during the auction. Additionally, non-competitive bids up to another 30 percent of the auctioned amount may be submitted until May 12.

 

[tommy271]

UBS: Second Greek Aid Plan Possible



UBS doubts that Greece will undergo a forced debt restructuring prior to 2013, according to a report.

“It is becoming increasingly apparent that the choice for policy-makers over the question of Greek government financing in the medium term is a simple one between bond market debt restructuring and further EU/IMF-sponsored aid, as Greece is likely to run out of funds in 2012”, said UBS.

It notes that low-key approaches to restructuring are now more difficult given the intensity of recent polemic and many policy-makers appear keen to avoid any form of restructuring.

A second aid plan might be challenging to justify on a political level, since in a sense it proves Greece’s insolvency. However, the consequences of coercive debt restructuring are extreme and unpredictable. As a result, Greek bond prices likely will remain very volatile for some time, but forced restructuring probably will be at least delayed, said UBS.

According to the firm, a voluntary rescheduling is possible this year, as policy-makers have been vocal on this subject recently, but “even a voluntary rescheduling would fail to provide the necessary boost to Greek sustainability. Nonetheless, it could carry weight as a necessary first step toward deciding on further aid to Greece.”

UBS believes that the Greek debt stock will need to be reduced significantly in the long run. “The fiscal situation appears to be unsustainable in the long term. However, this move could take place much later than 2012 and could conceivably be applied to debt owed to public sector institutions instead of private ones”, concluded UBS.

(capital.gr)

 

[tommy271]

Former IMF Official Calls Europe's Bailout Program A Pyramid Scheme

Gregory White | May 6, 2011, 8:26 AM | 1 |





Former IMF official and governor of Argentina's central bank Mario Blejer says Europe resembles a "Ponzi Scheme" in the way it's funding bailouts. From The Financial Times:
Here is where this situation resembles a pyramid or a Ponzi scheme. Some of the original bondholders are being paid with the official loans that also finance the remaining primary deficits. When it turns out that countries cannot meet the austerity and structural conditions imposed on them, and therefore cannot return to the voluntary market, these loans will eventually be rolled over and enhanced by eurozone members and international organisations.
Blejer argues that, because Greece is Greece and not Chad, it will not be punished for missing its austerity goals outlined by the EU and IMF. Instead, because this plan is funded by public rather than private investors, it could go on forever, that is until it is opposed by domestic political constituencies.
But in the end, Blejer argues it will be taxpayer who is at the bottom of the pyramid, left with the losses, while many of the original bondholders will already be paid off.


Read more: Former IMF Official Calls Europe's Bailout Program A Pyramid Scheme

 

[tommy271]

“Diaspora Bonds” on their way for Greek Americans!

Posted on 06 May 2011 by Anastasia Miskedaki


At the end of the month or early June it is estimated that the Ministry of Finance will have everything ready for the first bond issue of the Greek Community in the USA, which will be addressed to the U.S.A Greek Americans and not to institutional investors.
A few days ago, came the response from the U.S. Securities and Exchange Commission (SEC) after the request of the Ministry of Finance to issue special bonds for U.S. Greek Americans. According to reports, the U.S. authorities asked for details and the updated financial information of Greece, which were also disclosed on April 26 by EUROSTAT.
The file with their response is expected to be in the hands of the U.S. authorities in the coming days and (if there are no delays by the U.S. authorities because of the distrust that exists for Greek elements) the first bond of the Greek American community will be ready by late May or early June.
As a first step, Greece will attempt a «soft» borrowing, mainly with funds that could be trusted (or deposed) by Greeks who are living abroad.
The scheme is expected to be launched by the Greek Americans in the United States, possibly in May or June and will follow Canada, Australia and then Europe. Already the Ministry of Finance has submitted a preliminary application to the U.S. Securities Commission (SEC) to provide the so-called “Bonds of the Diaspora”.
Greece has requested approval to allocate up to $ 3 billion in total (2.15 billion Euros) over the next two or three years, to investors from the U.S.A.
Depending on the progress of the project, there will be future issues to meet the threshold (which can be lower or higher) that will ultimately be approved by the SEC.

(usa.greekreporter.com)

 

[tommy271]

Bce,occhio a prezzi, aumento rischio effetti second round-Mersch

venerdì 6 maggio 2011 15:05






FRANCOFORTE, 6 maggio (Reuters) - I pericoli inflazionistici derivanti dai cosiddetti effetti di second round sono aumentati, mentre una ristrutturazione del debito greco spazzerebbe via le banche del paese, ha detto il membro dell'Esecutivo Bce, Yves Mersch.
"Il pericolo di effetti di secondo round - un aumento del tasso di inflazione risultante da accordi su salari eccessivi - è aumentato", ha detto il banchiere, governatore della Banca del Lussemburgo, in una intervista al settimanale WirtschaftsWoche.

 

[tommy271]

ECB Mersch: Danger Of 2nd Round Effects Has Risen - Report




FRANKFURT -(Dow Jones)- The danger of second round effects has risen, European Central Bank Governing Council member Yves Mersch said in an interview published Friday.
"The danger of second-round effects, i.e. an increase of the rate of inflation through excessive wage deals, has risen," he said.
The central banker told Germany's WirtschaftsWoche magazine that the strong economic development from emerging countries is putting "massive pressure" on worldwide raw materials prices.
Mersch said he sees the ECB's program for buying the government bonds of crisis-ridden euro-zone states as finished. "We have fulfilled this mission," he said.
Mersch said that a restructuring of Greece's sovereign debt could "cause a bank run and obliterate the entire banking sector of the country," he said. " That would hurt not only the Greeks, but rather all citizens of Europe, that via insurance and savings, are invested in Greek debt."
"The Greeks should continue their reform program. That is at present the best option for all," he said.
Website: www.wiwo.de

 

[tommy271]

Un pò di grafici:

http://www.marketoracle.co.uk/Article27976.html

 

[tommy271]

La Borsa chiude la settimana con un bilancio in negativo. Siamo intorno ai minimi storici a 1370 punti con un calo giornaliero del 0,58%, i volumi rimangono bassi a 77 MLN.
Sulla scia l'andamento dei nostri titoli, in correlazione all'andamento borsistico. Attualmente a 1278 pb. L'appuntamento è ormai per la prossima settimana. Vedremo se sarà possibile un inizio di recupero, per ritornare alle abituali quote intorno ai 900 pb. o se saremo destinati a rimanere in mezzo alla palude.

 

[tommy271]

EU Wieser: "5 Or 6" Banks May Need To Act After Stress Tests



-- Stress tests to show "five or six" banks still need to bolster balance sheets
-- EU's Wieser says there will "never, ever" be a Greek debt restructuring
(Adds comments on Portugal's bailout in the 8th to 11th paragraphs, on the possibility of Greek debt restructuring in the 12th to 15th paragraphs.)



By Natasha Brereton
Of DOW JONES NEWSWIRES



HANOI (Dow Jones)--The next round of European stress tests this summer may show that "five or six" financial institutions still need to take action to bolster their balance sheets, while the majority of banks have already "done their homework," a senior European official said Friday.
Speaking to Dow Jones Newswires on the sidelines of the Asian Development Bank's annual meeting in Hanoi, Thomas Wieser, chairman of the European Union's Economic and Financial Committee, also insisted there would "never, ever" be a restructuring of Greek debt, noting there is still a year before the nation needs to return to the market.
He argued that it makes no sense to compare the bailout terms for Greece, Ireland and Portugal, saying that the terms recently given to Portugal were different but "by no means any more lenient," and noting that structural reforms--which are a crucial part of the country's program--can be harder to implement than fiscal reforms.
Asked whether the Portugal support package would finally allow confidence in the euro zone to recover, Wieser--who is also director general for economic policy and financial markets at Austria's Federal Ministry of Finance--said it was all a matter of market confidence.
"If we look at the objectively weak links in the chain, then I think in terms of the countries, we've got now the three weak countries covered," Wieser said.
In terms of the European financial sector, "a very large part...has done its homework" and bolstered balance sheets. But in a few cases, governments and supervisors will need to force institutions to take further action, and that--rather than transparency or whether or not the banks "pass"--is the most important part of the upcoming stress tests.
"It is about five or six European banks where the stress test helps the supervisor to order them--the banks--to do something. That's what it's about," he said.
As part of the EUR78 billion bailout package agreed with the European Union and the International Monetary Fund late Tuesday, Portugal will have to slash its budget deficit over the next three years, mostly by cutting expenses and boosting tax revenue through a restructuring of the country's fiscal policy. It also requires reforms in the country's housing and labor markets.
Portugal's caretaker Prime Minister Jose Socrates has described the terms of the plan as more gentle than Greece's and Ireland's, but Wieser said it is nonsense to compare three things that are completely different from each other, and which address different weaknesses.
Whereas in Greece the fiscal and debt problem outweighed other factors, and in Ireland the financial sector was the major issue, in Portugal it is threefold, involving relatively high public debt and household indebtedness and, in particular, low competitiveness.
"A very important plank of the program is the structural reform measures that have been agreed upon," Wieser said. "In terms of implementation, structural reforms sometimes are considerably more difficult than fiscal [ones]."
Speculation among financial investors is growing that Greece-the first euro-zone nation to receive assistance during the present crisis-will have to restructure its debts, but Wieser adamantly rejected that suggestion.
"There will be no restructuring. There is no need for restructuring," he said.
Quizzed on what would happen if Greece still hadn't won the trust of investors by 2012, when it is meant to return to the bond markets to meet nearly EUR30 billion of its funding needs, Wieser said: "We've got another year to go."
Some officials and analysts have suggested that Greece could lengthen the maturity of its debts, allowing it more time to repay the principal, rather than opting for an outright restructuring.

 

[tommy271]

L'intervista completa a Trichet la trovate qui:News Headlines


STEVE LIESMAN: There's some observers, economists, analysts who criticize the approach of the European Central Bank and the European governments to the financial crises, the sovereign debt crisis in Greece in Portugal in the following the way. They say the mistake you make is that it is not a liquidity problem, it is a solvency problem. Do you agree that that's a potential mistake you could be making? JEAN-CLAUDE TRICHET: I would say the following, which is very, very clear. We have an absolute need for the countries concerned. And, by the way, it's a message for all countries. And we were, I think very-- I would say constant in our message for all countries that the fiscal policies were absolutely decisive. Even at the time where benign neglect was practiced.
But we are telling them, and particularly those of course who have the greatest difficulty that it relies upon them that they have the capability to surmount their difficulty as other countries did in the past. We have the example in Europe of Belgium, for instance, going down from a very, very high level of debt outstanding to-- very significantly-- below 100 percent and closer and closer to 60 percent, which is, as you know, some kind of benchmark.
But that depends on you. That depends on your decisions. I mean, the government decision depends on restraining spendings, augmenting the receipts in particular by-- proper measures. Of course, some taxation. Also, overall, the structural reform that would permit to elevate your gross potential.
And that's the strong message. Nothing is impossible. When you look at what the votes we recently have done, you see that everything is possible when you have the will, and I trust that, it is an extremely important to concentrate on what they should do in the present circumstances. We have programs now that have been negotiated, at the time negotiated, that are being processed. In particular in Portugal. Those programs are comprehending those adjustment measures. We call to internal the adjustment measures as I would say-- as possible.
STEVE LIESMAN: So you're saying it's a solvency problem if they make it into one, and they have the power to make it--
JEAN-CLAUDE TRICHET: Absolutely.