When Greece is trying to reach a deal with private sector creditors that would pave the way for additional bailout funding. S&P confirming even after the deal Greece “in all likelihood” qualify as a default.
IMF warned yesterday and reduced its forecast growth for the world 2012 amid concerns with the European Crisis and the IMF chairman confirmed that the debt crisis in Europe is the biggest threat, Christine Lagarde also pointed to the challenges facing the U.S. economy.
Yesterday the talks fall apart and Greece is stuck with Troika (EU/ECB/IMF) on the one hand and Bondholders on the other.So here Greece acting as an intermediary( reference entity) where the Bond holders demanding 4% coupon on the restructured debt that is not acceptable by the Troika.
Things falling apart from the last days turning deja vu of Argentina, . Where I had a lot of optimism that we were not going the way of Argentina, we seem to be going that way.
It seems the difficult negotiating process could be a “reflection of the advisers,” referring to Cleary Gottlieb, the same law firm that represented Argentina during its 2002 default and continues to defend the country against investors who still seek payment on their debt
Everybody involved in this (need to) do a serious gut check – the Greeks, the Europeans, the banks and the funds.