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Posts Tagged ‘Christine Lagarde’

Germany, France press for rapid Greek debt deal

Posted by Admin on January 24, 2012

http://news.yahoo.com/euro-zone-finmins-rule-glacial-greek-debt-talks-083938401.html

By Daniel Flynn and Gernot Heller | Reuters – 2 hrs 8 mins ago

PARIS/BERLIN (Reuters) – Germany and France pressed on Monday for a rapid deal between Greece and its private creditors that cuts its soaring debt to sustainable levels and said they were committed to a sealing a new bailout for Athens by March to avert a disastrous default.

Euro zone finance ministers met in Brussels to discuss the terms of a Greek debt restructuring and new treaties that will pave the way for tighter fiscal discipline and a new rescue fund the bloc wants in place by mid-year.

Ahead of that meeting, French Finance Minister Francois Baroinsaid an elusive deal to convince the banks and investment funds that own Greek debt to accept deep losses on their holdings appeared to be “taking shape.”

But his German counterpart Wolfgang Schaeuble warned that any deal must help Greece cut its debt mountain to “not much more than 120 percent of GDP” by the end of the decade, from roughly 160 percent today, something many economists believe will not be achieved by the existing plan.

“The negotiations will be difficult, but we want the second program for Greece to be implemented in March so that the second (bailout) tranche can be released,” Schaeuble told a news conference in Paris with Baroin and the heads of the German and French central banks.

“Greece must fulfill its commitments, it is difficult and there is already a lot of delay,” Schaeuble said.

After several rounds of talks, Greece and its private creditors are converging on a deal in which private bondholders would take a real loss of 65 to 70 percent on their Greek bonds, officials close to the negotiations say.

But some details of the debt restructuring, which will involve swapping existing Greek bonds for new, longer-term bonds are unresolved.

Charles Dallara, the Institute of International Finance chief who is negotiating on behalf of the private debt holders, left Athens over the weekend saying banks had no room to improve their offer.

Sources close to the talks told Reuters on Monday that the impasse centered on questions of whether the deal would return Greece’s debt mountain, currently over 350 billion euros, to levels that European governments believe are sustainable.

“There will likely be an updated debt sustainability analysis that will be discussed at the Eurogroup,” a banking source in Athens said, requesting anonymity. “Talks will continue this week. The aim is to have an agreement by late next Monday.”

In Brussels, European Economic and Monetary Affairs Commissioner Olli Rehn said talks had been “moving well” and expressed confidence a deal could be sealed this week.

German Chancellor Angela Merkel said there was no question of extending Greece a bridging loan if talks with the private sector dragged on further.

The euro pushed up to its highest level against the dollar in nearly three weeks on hopes Greece and the banks could overcome differences and seal a successful debt swap.

LAGARDE DEMANDS

Speaking in Berlin not far from Merkel’s Chancellery, IMF chief Christine Lagarde urged European governments to increase their financial firewall to prevent Greece’s troubles from ensnaring bigger countries like Italy and Spain.

She also called on European leaders to complement the “fiscal compact” they agreed last month with some form of financial risk-sharing, mentioning euro zone bonds or bills, or a debt redemption fund as possible options.

Berlin opposes those steps and Merkel told a news conference with the Belgian prime minister that it was not the time to debate an increase in the euro zone’s bailout funds — the European Financial Stability Facility (EFSF) and its successor, the 500 billion euro European Stability Mechanism (ESM).

“I don’t think it is right to do one new thing then do another, let’s get the ESM working,” Merkel said, reiterating that Germany was prepared to accelerate the flow of capital into the ESM ahead of its planned introduction in mid-2012.

Italian Prime Minister Mario Monti, who has complained openly that his reform efforts have not been recognized by the markets, is reportedly pushing for the rescue fund to be doubled to 1 trillion euros. Lagarde stopped short of advocating that, saying: “I am not saying double it.”

But she did speak out in favor of folding funds from the EFSF into the ESM to give it more firepower.

The more immediate worry is Greece. Without the second bailout from the euro zone and the International Monetary Fund, Athens will not be able to pay back 14.5 billion euros in maturing bonds in March, triggering a messy default that would hurt the entire euro zone and send tremors beyond the 13-year old single currency bloc.

DETERIORATION

Euro zone leaders agreed in October that the second bailout would total 130 billion euros, if private bondholders forgave half of what Greece owes them in nominal terms.

But Greek economic prospects have deteriorated since then, which means either euro zone governments or investors will have to contribute more than thought.

A key sticking point is the coupon, or interest rate, the new Greek bonds would carry. Officials said the new bonds are likely to be 30 years in maturity and carry a progressively higher coupon, which would average out at around 4 percent.

Progress will be presented to the Eurogroup, the euro zone ministers, by Greek Finance Minister Evangelos Venizelos.

“We will listen to the Greek finance minister to hear what models there are,” said Austrian Finance Minister Maria Fekter as the talks got under way. “It is important to have a long-term model so that Greece has time … We know that the banks are not overly happy, but a crash is far more expensive than such a long-term plan.”

After dealing with Greece, euro zone ministers will choose a replacement for European Central Bank Board member Jose Manuel Gonzales Paramo, whose term ends in May.

The 17 ministers of the euro zone will then be joined by 10 ministers from the other European Union countries to finalize a treaty setting up the euro zone’s permanent bailout fund, the

ESM.

The 27 EU finance ministers will also prepare the final draft of another treaty to sharply tighten fiscal discipline in the euro zone, called the “fiscal compact,” that is designed to ensure another sovereign debt crisis cannot happen in future.

EU leaders are to sign off on both treaties at a summit on January 30, allowing the ESM to become operational in July.

(Additional reporting by Stephen Brown and Alexandra Hudson in Berlin, Leigh Thomas in Paris, Lefteris Papadimas and Ingrid Melander in Athens; Writing by Noah Barkin and Jan Strupczewski, editing by Mike Peacock/Jeremy Gaunt)

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BREAKING NEWS: Mounting Evidence that Dominique Strauss Kahn was Framed

Posted by Admin on July 10, 2011

http://www.globalresearch.ca/index.php?context=va&aid=25533

Global Research, July 7, 2011
While the media has gone to arms length to obfuscate the matter, there is mounting evidence that Dominique Strauss Kahnwas framed.

According to media reports, the 32-year-old Guinean Sofitel housemaid received the modest sum of 100,000 dollars paid into her bank account. The New York Times acknowledges the payment but fails to analyze the source of these payments. In an utterly confused statement, the NYT suggests that the money was deposited in the housemaid’s account by her Guinean boy friend who is serving time in a high security prison:

According to the two officials, the woman had a phone conversation with an incarcerated man within a day of her encounter with Mr. Strauss-Kahn in which she discussed the possible benefits of pursuing the charges against him. The conversation was recorded.

That man, the investigators learned, had been arrested on charges of possessing 400 pounds of marijuana. He is among a number of individuals who made multiple cash deposits, totaling around $100,000, into the woman’s bank account over the last two years. The deposits were made in Arizona, Georgia, New York and Pennsylvania.

The investigators also learned that she was paying hundreds of dollars every month in phone charges to five companies. The woman had insisted she had only one phone and said she knew nothing about the deposits except that they were made by a man she described as her fiancé and his friends. (NYT, July 1, 2011, emphasis added)

The bank records of the housemaid, not to mention the record of her telephone calls, are known to police investigators, yet both the media and the prosecutors have failed to reveal the identity of the persons who instigated these money transfers.

The reports suggest that they may be “drug related”, thereby casually dismissing the likelihood that the money could have been part of the framing of DSK. The reports also mention that the money deposits were made “over the last two years”, thereby conveying  the impression that they bear no relationship to the DSK affair.

The exact timing of these money transfers including the identity of  senders are known to police investigators. Why has this information not been released?

If the 100,000 dollars had indeed been deposited into her bank account in the course of the last two years, why on earth would she be working as a housemaid?

Regime change at the IMF

Why was the substance of the housemaid’s false accusations not released at an earlier stage?  Who was protecting her?

Why did the media wait to reveal information which confirms DSK’s innocence.

This information was known to the prosecutors at an early stage of the investigation, yet it was only released after the appointment of France’s Finance Minister Christine Lagarde as Managing Director of the IMF.

Lagarde’s candidacy was confirmed and accepted on June 26th. Her mandate was confirmed on June 28th following a decision of the IMF’s 24 member executive board.

Lagarde is an appointee of Wall Street and the US banking establishment. Her candidacy had been approved by U.S. Treasury Secretary Timothy Geithner on the 28th of June:

“I am pleased to announce our decision to support Christine Lagarde to head the IMF,” Geithner said in a statement hours before the 24-member IMF executive board was expected to select her as its managing director.

Careful timing. In a bitter irony, the report from the prosecutor proving DSK’s innocence was released on the day following the IMF’s executive board decision instating Lagarde as Managing Director of IMF for a five year term.

The frame-up has visibly succeeded. Who instructed prosecutors not to release this information until after the appointment of Lagarde as IMF Chief?

If this information had been revealed a few days earlier, Lagarde’s candidacy as IMF chief might have been questioned.

Regime change at the IMF has been speedily implemented, not to mention the implications of the DSK affair in relation to the French presidential elections.

Christine Lagarde commenced her five year term as IMF Managing Director on July 5th at the height of Greece’s debt crisis.

Sofar, the likely hypothesis of a frame-up directed against DSK is not being touched upon by the mainstream media.

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