Greece belatedly looks at homework –

BERLIN, GERMANY - JUNE 21:  In this photo illu...

BERLIN, GERMANY – JUNE 21: In this photo illustration a one Euro coin stands on Euro currency bills on June 21, 2011 in Berlin, Germany. Eurozone finance ministers are currently seeking to find a solution to Greece’s pressing debt problems, including the prospect of the country’s inability to meet its financial obligations unless it gets a fresh, multi-billion Euro loan by July 1. Greece’s increasing tilt towards bankruptcy is rattling worldwide financial markets, and leading economists warn that bankruptcy would endanger the stability of the Euro and have dire global consequences. (Image credit: Getty Images via @daylife)

Academy of Athens (modern)

Academy of Athens (modern) (Photo credit: Wikipedia)

Financial Times

Financial Times (Photo credit: henry…)

Coat of arms of Greece since 7 June 1975.

Coat of arms of Greece since 7 June 1975. (Photo credit: Wikipedia)

…………………………………………………………..This is an excellent editorial article from the FT. Check it out!

Greece belatedly looks at homework –

After two years of the Greek Governments making promises, taking the money and not delivering, here is perhaps an honorable Government with a credible plan to look for a two-year austerity extension? The questions are:

  1. Is it too little, too late for Greece’s creditors?
  2. Will the creditors play “hard-ball” precipitating a Greek exit from the Euro. and a larger “haircut” on their loan capital?

This is a really tough call, given the political hardening in Germany but if I were a betting man (which I’m not), I do not believe that Germany is yet ready to “take a big hit” with contingent risks of contagion to other Mediterranean countries.

What do you think?

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Greek banks bid for Crédit Agricole unit –


Crédit Agricole (cycling team)

Crédit Agricole headquarters : 91-93 boulevard...
Crédit Agricole headquarters : 91-93 boulevard Pasteur, Paris 15th arr., France (Photo credit: Wikipedia)

This is a very interesting story reported in the FT. Check it out!

Greek banks bid for Crédit Agricole unit –

What really caught my attention was the following comment in the FT article:

Crédit Agricole’s €23bn of Greek loans make the French lender the foreign bank with most at risk should Greece leave the euro.

Personally, I was encouraged that three major Greek banks are ready to go head-to-head to buy Credit Agricole’s Greek subsidiary. Clearly the Greek banks think that it’s a good investment, so perhaps they can see better times ahead in Greece?

Clearly for Credit Agricole and the French Government, the $23bn of dodgy Greek loans are a major embarrassment.

What do you think of this story?


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