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Greek debt deal: enough for now

Tuesday, November 27, 2012 - 01:58

Nov. 27 - Protests on the streets of Athens deride a deal struck by euro zone finance ministers and the IMF to reduce Greek debt by 40 billion euros but financial markets were cheered. Joel Flynn reports.

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More protests in Athens over job losses and reforms. Greece's international lenders may have finally agreed a deal to keep the country afloat. But these protesters aren't impressed - despite encouraging words from the Eurogroup President. SOUNDBITE: Eurogroup President, Jean-Claude Juncker, saying (English): "This is the promise of a better future for the Greek people and for the euro area as a whole." Greece will receive almost 44 billion euros in stages, as long as it fulfils certain conditions. The first instalment will be paid next next month for its banks and budget assistance. Ministers will also hand back profits from Greek bond holdings at the ECB. All of these measures should cut Greek debt to 124% of GDP by 2020. But how this deal will solve the larger issues faced by the Greek economy is unclear. Richard Hunter is from Hargreaves Lansdown. SOUNDBITE: Hargreaves Lansdown Head of Equities, Richard Hunter, saying (English): "The underlying problems still remain; as we know, debt of course is one issue in the euro zone, but the other issue is growth, and it's the former that policy makers have been concentrating on at the moment.What this does do for Greece of course is just effectively keeps it going." Greece could be renegotiating another deal in as little as six months time. But some say there's now no threat of Greece leaving the single currency until September 2013. Tom Elliott is from JPMorgan. SOUNDBITE: JPMorgan Global Strategist, Tom Elliott, saying (English): "We're waiting for Angela Merkel to be re-elected next autumn and from that point onwards the indications are that we can expect German, or we can hope for German backing for official sector involvement in writing off debt." The current deal is being seen by some as a mere sticking plaster. And many in Greece still feel far too wounded to believe recovery is on the way any time soon.

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Greek debt deal: enough for now

Tuesday, November 27, 2012 - 01:58

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