On the very day Germans voted for a new government last month, a team from Greece’s international creditors was visiting Athens amid the widespread expectation that a new aid package would be needed, including debt relief.
One can accuse Germany’s finance minister of many things, but not of hiding his views. By saying that a Greek default is possible because the rest of the euro area can now bear it, Wolfgang Schaeuble has simply admitted that the strategy adopted since late 2009 has been designed to protect Germany, not to help Greece. By further suggesting that elections be delayed in Greece and that technocrats replace the remaining politicians holding ministerial jobs, Herr Schaeuble has shown how little he cares about elementary democratic principles.
Charles Wyplosz , the director of the International Centre for Monetary and Banking Studies in Geneva, said political interference has undermined European bank stress tests and he doesn’t have faith in the results.
Private investors in Greek bonds will need to take losses ranging from 40 percent to 60 percent, according to Charles Wyplosz, director of the Geneva-based International Center for Money and Banking Studies.
Five days before Christmas, ex-Deputy Prime Minister Rodrigo Rato was asked by a prosecutor probing the collapse of Bankia SA whether he’d done business with Jaime Castellanos, chairman of Lazard Ltd.’s Spanish unit.