Eurozone finance ministers will decide on Monday what terms of a Greek debt restructuring they are ready to accept as part of a second bailout package for Athens after negotiators for private creditors said they could not improve their offer.
Angela Merkel and Nicolas Sarkozy, racing to stamp out the euro debt crisis threatening to engulf the financial system, gave themselves three weeks to devise a plan to recapitalize banks, get Greece on the right track and fix Europe’s economic governance.
The consequences of a Greek debt restructuring on Europe's markets are unforeseeable and could eclipse the Lehman Brothers insolvency that precipitated the global financial crisis, a top ECB policymaker said on Monday.
Martin W Hennecke, Associate Director of Tyche Group, in an interview with CNBC-TV18’s Reema Tendulkar and Sonia Shenoy, discusses on what the Greek situation mean for our own markets and global equities.
Raoul Ruparel, co-author of the Open Europe Report on the ECB, in an interview with CNBC-TV18's Menaka Joshi, gives his outlook on Greek debt restructuring and Europe.
Euro zone interbank markets are showing little stress at the prospect of a Greek debt restructuring but expectations the ECB will keep providing cash to banks are masking growing worries about the systemic impact of such a move.
The rupee gave up all intraday gains on Tuesday due to strong demand for the US unit from importers, but euro's rise and positive local stocks limited the retracement.
Europe's shares advanced on Friday, led higher by banks after a media report that stringent capital requirements for European banks could be relaxed, and helping power world stocks up for the fourth straight day.
A restructuring of Greek public debt would likely have widespread repercussions for the eurozone's banking system, including a new round of banking recapitalisations, a Reuters poll showed on Wednesday.
Moody's has raised the red flag on implications of Greece's debt woes. Moody's investors service said that a Greek debt restructuring could affect the credit ratings of other European sovereigns. Moody's also warns that a restructuring of Greek government debt will lead to rating downgrades for Greek banks.
The IMF warned Greece on Wednesday it must redouble reform efforts to avoid derailing its fiscal programme, key to dealing with a huge debt mountain.
The German finance ministry on Saturday denied it was drawing up contingency plans for a Greek debt restructuring after the Financial Times reported the ministry was studying various options if Athens fails to meet its fiscal targets.