Greece has agreed a package of bail-out measures worth €110 billion ($1 from the International Monetary Fund (IMF) and the European Central Bank (ECB).The rescue fund, which will be donated to the ailing state over the course of the next three years, will receive €80 billion from the ECB with the IMF providing the rest of the money.Before the terms of the bail-out were agreed, George Papandreou, Greek prime minister, said that the state needed to reach an agreement with the two bodies over a bail-out package to rescue the beleaguered state.The politician was quoted by Reuters as saying: “Today the top priority is the survival of the nation.
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Goldman Sachs analyst: Greece may need $198bn bailout
April 28th, 2010
Before You Invest An analyst at Goldman Sachs has forecast that Greece may require a total of €150 billion ($198 billion) in bailout funding for its economy to remain operational.Earlier this month, a provisional deal was agreed between the country, the International Monetary Fund (IMF) and other eurozone member states to provide Greece with €45 billion.But Erik Nielsen, chief European economist for Goldman Sachs, has warned this figure is nowhere near high enough to tackle Greece’s economic woes, reports the Guardian.”On my numbers, a one-year fully funded program needs to provide a minimum €50-55 billion, an 18-month program will require some €75 billion, and a three-year program a minimum €150 billion,” he said in a note to investors.”I reckon the latter number is out of reach even for the present political environment of generosity, so the debate is between €55 billion and €75 billion.”Mr Nielsen added that he believes that representatives from the IMF and the eurozone will already be debating how they will share the burden of delivering more financial aid.He said he does not reckon it likely the eurozone countries will be able to come up with much more cash than the €30 billion they have already pledged to hand over to Greece.Mr Nielsen went on to speculate that the IMF may be able to place together an additional funding program based on either providing €55 billion over the course of a year or €80 billion across an 18-month period.Earlier this week, German finance minister Wolfgang Schauble warned that it is not yet certain the eurozone will provide the initial €30 billion of funding Greece is expecting.He said that the provision of aid is dependent on Greece coming up with a detailed plot on how it intends to cut its budget deficit in the next few years.
International Monetary Fund now estimates global bank losses at $3.4 trillion
November 8th, 2009
Before You Invest The International Monetary Fund (IMF) has reduced its estimate of global bank losses by $600 billion – but warned the new figure of $3.4 trillion could rise further due to high unemployment rates across the world pushing up loan losses.Rising security values combined with a new way of calculating losses are to thank for the improvement on the original $4 trillion deficit calculated in April.But the IMF says that around another $1.5 trillion worth of loan writedowns will hit banks by the end of 2010.
This Day in Wall Street History 1944: Farewell to Bretton Woods
July 23rd, 2009
Before You Invest During the summer of 1944, representatives from 44 nations gathered at a resort hotel in Bretton Woods, N.H., to hash out the global finances for the remaining half of the 20th century.Cast against the backdrop of World War II, the three-week conference was a striking show of the United States’ swelling political and fiscal might.
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