A new meeting of the Eurogroup on March 21 is needed in order to resolve the disagreements between the European Union member states on the implementation of the European Summit decisions.
Finance ministers at the Eurogroup on Monday couldn’t agree on the fine print of the new role of the region’s rescue fund (EFSF) regarding to the terms of the loans, despite the initial agreement between state leaders.
The proposal to enhance the capacity of the Fund through increasing of the guarantees for nations with “AAA” rating is still facing opposition.
For Greece (and Portugal), it is really important what kind of guarantees should be deposited by the countries that need to resort to the fund until 2013, as it will determine the range of help facilitated by the fund either to help service the debt in 2012 or to proceed with an indirect restructuring of debt.
In any case, everything should be agreed in detail by March 25.
Later on Tuesday, Greek Finance Minister Giorgos Papakonstantinou will discuss at the Ecofin meeting the issue of rating agencies’ attitude. It is expected that his position will be supported by the Spanish Finance Minister.
Finance ministers at the Eurogroup on Monday couldn’t agree on the fine print of the new role of the region’s rescue fund (EFSF) regarding to the terms of the loans, despite the initial agreement between state leaders.
The proposal to enhance the capacity of the Fund through increasing of the guarantees for nations with “AAA” rating is still facing opposition.
For Greece (and Portugal), it is really important what kind of guarantees should be deposited by the countries that need to resort to the fund until 2013, as it will determine the range of help facilitated by the fund either to help service the debt in 2012 or to proceed with an indirect restructuring of debt.
In any case, everything should be agreed in detail by March 25.
Later on Tuesday, Greek Finance Minister Giorgos Papakonstantinou will discuss at the Ecofin meeting the issue of rating agencies’ attitude. It is expected that his position will be supported by the Spanish Finance Minister.
