50% of Greece's Debt written off

Freddie59 wrote: »

Have NO debt written off......?

They aren't getting debt written off because they are such nice people. They are getting debt written off because the alternative is disastrous. Writing off debt is a risky thing. The banks have only agreed to it because they agree that the alternative would be much worse.

We're in a far better position then Greece.

What does grind my gears though is the recapitalization fund for European banks. I wonder is there any chance of us getting some of that money since we have pumped money into ours out of our own back pocket. Unlikely but could be worth a shot if we shout enough.

Whatever way you look at this the Euro zone is fooked.

To the man on the street it looks like the Greeks have gotten off scott free.

However,

There was no HOPE of recovering this debt. It was structured around money owed that was not substantiated by collateral. i.e Greek property and valuation collapse. So basically once the collateral is gone, its not forgiveness, its a write down to accept the basic fact that you owe us X- they were never going to get that from a defunct Greece so they have said you owe us a more manageable X that we might actually be able to milk out of you.

They'll be lucky to get half imo.

Same with Ireland- you can bandy about figures all you want but they underlying assets are not there to support the loans that were taken out from Germany. The Germans and the Politicians want to go on believing that they will make some sort of return but they won't. They will have to write down a whole chunk of debts in every Euro zone country and take the hit to the Euro which will destroy German export values but will make Euro able to compete for international manufacturing.

The problem is, ultimately we owe all this Money to China ........... **** gonna hit the fan me thinks.

A lot of people moan about the current government but in fairness they reduced the EU-IMF loans from 5.83% to 3.4% saving 1 billion a year in interest repayments and burned 5 billion euro of bondholders. Fianna Fail could do no such thing when they were in office cause they're absolutely useless.

black francis wrote: »

Nope, they just happened to be in Government at the time the decision was taken - nothing to do with the superior negotiating powers of Mr Kenny and friends - everything to do with the situation in Greece.

Agreed, they had nowt to do with it.

Before the election it was all bravado on how they were going to demand a reduction in the bail out interest rate.

Once they got in they didn't raise it at at a European level.

Wondering why Ireland won't get a write off? Easy, Noonan has told them we will pay back every penny.

Just like Fianna Fail, this current government have only words. They are in the backseat looking out as the current takes them along.

If it goes well they'll take the credit and pat themselves on the back.

Anglo will be paying out €1 billion to bondholders shortly even though the bondholders themselves paid around 50 cent on the Euro in the secondary markets. Craziness.