Cyprus Bailout Shockwaves Travel Beyond Eurozone
A deal that “broke the rules” has struck fear in depositors’ hearts—and not just in Cyprus
Greece Gets Two More Years to Hit Deficit Targets
International Monetary Fund Director Christine Lagarde protested the extension of the deadline for Greece to cut its debt to a “sustainable” level to 2022, saying that the target date “has to be 2020.”
Spain in Mind as Eurozone Brings ESM Online
The European Stability Mechanism, the permanent rescue fund of the eurozone, goes into operation on Monday in anticipation of Spain’s potential need for a bailout.
Spain Hesitates on Aid as European Finance Ministers Meet
Prime Minister Mariano Rajoy of Spain continued to hold off in requesting a bailout for the country’s banks, citing lower interest rates in the wake of the ECB's decision to commit to unlimited bond purchases.
Greek Opposition Holds Out on Spending Cuts
Prime Minister Antonis Samaras ound the going tough over the weekend as he failed to convince all members of his coalition that additional austerity measures must be enacted to obtain the next tranche of rescue funding.
Greece Progresses on Rescue
The ECB’s Governing Council has decided to raise the upper limit for the amount of Greek short-term loans the Bank of Greece can accept in exchange for emergency loans.
Draghi, With Credibility at Stake, Ups Ante in Debt Fight
ECB President Mario Draghi is upping the ante after saying last week he would do "whatever it takes" to preserve the euro.
Spain Faces Tough Haul
Already mired in debt and unemployment, Spain has been told that the target deficit rate of 5.8% of GDP that new Prime Minister Mariano Rajoy declared only 10 days ago is inadequate, and Madrid must seek a faster reduction in its deficit.
ECB Plans to Surrender Greek Bond Profits
ECB officials Joerg Asmussen and Luc Coene support the idea, and discussions are under way to determine how to book such profits up front so that they can be provided to Greece as an early lump sum.
Deadline for Greek Bailout Agreement Set for Monday
Eurozone finance ministers intend to polish up an agreement to grant Greece a second bailout package in the hope that it will forestall the debt crisis and reassure markets.