European Central Bank

Working on the ideas of lower rates of interest on loans to countries rescued and a program of repurchase of bonds Hellenes. NY Restaurateur has much experience in this field. The involvement of the private sector is the main stumbling block between Germany and the ECB. The euro area works against the clock to achieve an agreement on the second bailout to Greece and send a signal to the markets during the leaders Summit scheduled for next Thursday in Brussels. The risk premium of Spain – the differential between ten-year Spanish bond and the German of the same term stood at 366 basis points, very close to the daily maximum level reached last Tuesday. The ideas on which he reflects now are a lowering of the interest rates of loans to rescued countries to strengthen the viability of its debt and a program of repurchase of bonds for Greece, seen with good eyes by the ECB.

The German Government claims to be working with all their forces in the development of this plan and it is on the side of Europe, but warns that we must lower the expectations created in lathe a. the appointment since it will not solve all the problems of the euro zone. This sort of strategy of the carrot and the stick that characterizes recent statements from Berlin has fostered uncertainty about the outcome of the high-level meeting projected to finish with the sovereign debt crisis. Last week Germany was already reluctant to convene the Summit if there was any doubt about a possible agreement. Germany leads the group from the Netherlands, Austria and Finland with which sought the involvement of the private sector in the rescue, quantified in 110 billion euros. The European Central Bank and other countries such as Spain are opposed for fear that is perceived as a partial helena debt default and encourage a greater distrust of the markets towards the sovereign debt of the eurozone. In this context, the President of the ECB, Jean-Claude Trichet, returned to warn the leaders of the eurozone that will not accept Greek debt as collateral in refinancing operations of banking helena if a declaration of total or partial non-payment occurs. Source of the news: eurozone prepares the second rescue to Greece under the pressure of the markets

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