LONDON — Even as European taxpayers grimace at the escalating cost of bailing out Greece’s banking system, the banks’ top executives are poised to potentially strike it rich. The plan developed by the Greek government and its international creditors to recapitalize the country’s banks involves an unusual twist as stock offerings go: the new shares in the banks will give investors free and potentially lucrative warrants that will entitle them to buy many more shares in the future at a predetermined price.
By LANDON THOMAS Jr., The New York Times
(Reuters) - Former European Central Bank President Jean-Claude Trichet accused the International Monetary Fund on Tuesday of rewriting history by arguing that Greece should have been made to restructure its debt in a 2010 bailout.
The IMF said in a report this month that it lowered its own standards to join a flawed programme for Athens, saying: "An upfront debt restructuring would have been better for Greece although this was not acceptable to the euro partners."
Greece is back in the news Friday. A deadlock over whether to shut down the state broadcaster is eliciting fresh fears that the government coalition could fall apart.
Those fears have helped push bond yields up dramatically. The Wall Street Journal reports:
By Paul Vigna, Wall Street Journal
The last thing an already nosediving market needed was this: IMF to Suspend Greek Aid Unless Euro Zone Resolves Shortfall in Rescue Package – FT
The FT is reporting that the IMF warned it would suspend aid payments by the end of next month, unless a shortfall in Greece’s bailout program was filled by euro-zone leaders.
By Peter Spiegel in Luxembourg, Financial Times
The International Monetary Fund is preparing to suspend aid payments to Greece by the end of next month unless eurozone leaders plug a €3bn-€4bn shortfall that has opened up in Greece’s €172bn rescue programme, according to officials involved in management of the bailout. The gap emerged after eurozone central banks refused to roll over Greek bonds they hold, and comes amid signs that even the scaled-back privatisation plan Athens agreed to last year is falling behind schedule.