Greece Update

Greece has just delayed its bond sale, as it negotiates with the EU on budget targets a Bloomberg report stated. The nation is likely holding out to garner some concessions regarding the proposed spending cuts its neighbors are trying to enforce. Greece intends to reduce its budget deficit by 4 percentage points this year, and return it to the 3 percent limit set by the EU sometime in 2012. It is anticipated the nation will sell $6.8 Billion in bonds as early as next month.


Greece is struggling under its current debt, and is making every attempt to borrow at reasonable levels to meet its current needs. 20 Billion of redemptions are anticipated by the end of May, and the country is estimated to need at least 53 Billion more Euros through the course of the year. If no progress is made, Greece may have to seek funding from the IMF in mid-March. Without a guarantee from the EU, it is estimated that Greece will have to offer a premium of over 400 basis points to German bunds.



http://www.bloomberg.com/apps/news?pid=20601087&sid=aEyJBXEF0zjw


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