On 21 February, Eurozone finance ministers approved the new EUR 130 billion (USD 172 billion) rescue package to shore up Greece against the risk of bankruptcy. Prior to the approval, Greece had reached a deal with private investors to accept a voluntary bond exchange with nominal losses of 53.5% on the debt, which is above the 50% haircut agreed in October 2011. Greece will also pay lower interest rates, with the debt coupon at 2% until 2015 and 3% over the following five years, before finally rising to 4.3%. According to the terms of the agreement which seeks to reduce public debt from its current 160% to 120.5% of GDP by 2020 the European Commission will station a permanent team in Greece to monitor the plan's implementation. In addition, a part of state revenue will be directed into a segregated account, which will be used to fund debt repayment. The Greek government also committed itself to implementing yet another set of austerity measures. Accordingly, on 28 February, the parliament approved further budget cuts, totalling around EUR 3.2 billion and including, among other measures, pension cuts, a reduction in the minimum wage, a public sector wage freeze and defence budget cuts. On 2 March, owing to the deteriorating situation of the Greek economy, international rating agency Moody's downgraded Greece's long-term credit rating to C (default) from CC, following Standard & Poor's reduction from CC to selective default (SD) on 27 February. The downgrades raised concerns that pay-out on Greek credit-default swaps (CDS) could be triggered. Against this backdrop, on 1 March, the International Swaps and Derivatives association stated that a restructuring credit event has not occurred yet and that pay-out on Greek CDS will not be activated. However, the committee noted that the situation in Greece is still evolving and that new developments may well trigger CDS pay-outs at a later date.
Greece secures its second multi-billion bailout
March 2, 2012
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Greece Economic News
October 10, 2016
In August, industrial production fell a working-day adjusted 0.3% compared to the same month last year, which contrasted the revised 4.7% expansion in July (previously reported: +4.1% year-on-year).
October 6, 2016
The number of unemployed fell by 5,357 in July, according to the Hellenic Statistical Authority (EL.STAT.).
October 3, 2016
The IHS Markit manufacturing Purchasing Managers’ Index (PMI) deteriorated in September, erasing most of the gains made in August.
September 9, 2016
In July, industrial production rose a working-day adjusted 4.1% compared to the same month last year, which came in below the revised 7.9% expansion in June (previously reported: +7.5% year-on-year).
September 8, 2016
The number of unemployed fell by 6,800 in June, according to the Hellenic Statistical Authority (EL.STAT.).