The debate on the extension of the lending capacity of the European rescue facilities and widening of the scope of the facilities continues with high momentum. In interview in the weekend press, Eurogroup Chairman Jean-Claude Juncker said in Der Spiegel that it would be important to increase the lending capacity to the initially planned value. Regarding the proposal to give the facilities the right to fund bond buy-backs, Mr. Juncker said that it would be wrong to create any taboos in the debate, but also warned against overstretching the strong countries. Mr. Juncker was also confident that Germany would support the extension of the European facilities, however, he was concerned about the recent Europe-critical statements from the FDP, the junior coalition party in Germany. Note, that after being against any change of the existing rescue facilities, Economics Minister Rainer Brüderle from the FDP said Germany was seeking an increase in the lending capacities of the rescue facility, saying the facilities could charge different interest rates. At the same time, Mr. Brüderle asked for tighter fiscal rules in Europe.
Juergen Michels, Econom
ics Daily, Citigroup
para além do tempo (timing, speed), convém recordar a artimética da dívida (a rapaziada mais solene chama-lhe dinâmica): com um crescimento nominal perto de zero, ao custo médio da dívida que conhecemos, a experiência grega, irlandesa (e, já agora, luso-espanhola) aponta para haircuts relevantes (ainda que a figura do buyback possa iludir a hipótese do haircut formal). Relembremos o caso boliviano e a velha polémica Rogoff-Sachs: não são formalmente haircuts mas os uncovered senior lenders ficam a arder....