Eurogroup details sizeable aid mechanism for Greece

Authors: Gikas Hardouvelis, Platon Monokroussos
Publication: Focus – Greece, Eurobank Research, April 12, 2010

In this report, we present an analysis on Greece’s sovereign debt crisis, focusing, primarily, on the likely characteristics of a Euro Area/IMF rescue package, provided that the country will apply for such aid. We also provide specific examples of effective borrowing costs for various maturity loans Our analysis is based on
I. what has become publically known following a Eurogroup teleconference held on April 11
II. the modalities and cost structure of existing IMF lending instruments, particularly those applied to the Stand-By Arrangement (SBA), which currently appears the most suitable lending facility for Greece and
III. various comments made so far on the issue by high-level EU and IMF officials.

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