Greece round up

19th June 2011

The paper also noted that pressure had been rising as former US Fed chief Alan Greenspan said a Greek default was almost inevitable.

Saturday's Guardian reported the Bank of England's new Financial Policy Committee, designed to warn of and help avoid future crises, is to consider the implications of a Greek default.

The article quoted Steven Major, global head of fixed income research at HSBC, on why it matters to the UK. "It matters to the UK economy. This is because a default by Greece or a renegotiation of a bailout could be taken as a signal by the Irish and Portuguese governments to alter their own bailout terms. This is why it starts to matter. The UK has very little exposure to Greece, tiny exposure to its bonds and the inter-bank market. But the UK has much larger exposure to Ireland and Spain."

By Sunday the Telegraph was also reporting that two UK banks had pulled billions out of the Eurozone.

 "Standard Chartered is understood to have withdrawn tens of billions of pounds from the eurozone inter-bank lending market in recent months and cut its overall exposure by two-thirds in the past few weeks as it has become increasingly worried about the finances of other European banks."

"Barclays has also cut its exposure in recent months as senior managers have become increasingly concerned about developments among banks with large exposures to the troubled European countries Greece, Ireland, Spain, Italy and Portugal."

Even China has voiced its opinions. Yahoo News Singapore reports the words of Chinese Minister vice foreign minister Fu Ying 

She said: "The capacity of certain European nations to overcome their difficulties and come out of the crisis is extremely important for us."

Greece has a new finance minister reported here in the Washington Post

"Evangelos Venizelos must convince his eurozone counterparts to release a loan installment his country needs to avoid defaulting on its massive debts next month, and to commit to billions in new loans to keep Greece afloat in the coming years," the paper says. 

Not much different from what the old finance minister had to do then.

Finally Arnold the Penguin thinks he's cracked why everyone is so worried. On the Telegraph message board, he writes:

To summarize a much quoted source

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