Find below the full Eurogroup statement on the new Greek deal, which includes lowering interest rates and extending maturities on existing loans to European governments. That is, another default.
In return for this, Greece will receive the next disbursement of its EFSF for $43.7 billion euros in 3 tranches, the last being conditional on on-going MoU implementation under Troika supervision, and will supposedly charge forward to a sustainable public to GDP ration of 124% by 2022. Given previous miscalculations on the fiscal multiplier within the Greek economy I have to say I’m highly doubtful on that figure.
I will return with more tomorrow.
Advertisement