You will never guess from where and with what:
"more money from taxpayer coffers"
"S&P sees one plan to ease Greek debt as a default" July 05, 2011|By Jack Ewing and Landon Thomas Jr., New York Times
FRANKFURT - As Europe turns from its latest short-term fix for Greece to planning a longer-term bailout for the debt-plagued country, the ratings agency Standard & Poor’s indicated yesterday how difficult it would be to off-load some of the cost of rescuing Greece onto creditors without also provoking a default that could shock the global economy....
European leaders are trapped between domestic political demands for banks to share the cost of a Greek bailout, and the dire consequences of a default. These would include the collapse of Greek banks, probably followed by the collapse of the Greek economy, and Greece’s exit from the euro zone.
A crisis in Greece could quickly spread to European banks, particularly in France and Germany, which own government bonds or have lent money to Greek individuals and businesses. Ratings of French banks have suffered because of their vulnerability to the Greek economy.
As a result, officials predicted, European governments may have little choice but to abandon or modify the voluntary plan and fill the gap with more money from taxpayer coffers....
--more--"
"Banks discuss new a Greek bailout" July 07, 2011|Associated Press
PARIS - The biggest banks in the eurozone met yesterday to hash out ways to contribute to any new financial rescue package for Greece, as trouble in Portugal revived worries about Europe’s financial health and hit stock markets in Spain and Italy.
The meeting of senior executives from top European banks in Paris ended with no public disclosure of a deal, but plans for further discussions in the weeks ahead.
European governments are trying to seal a new bailout package for Greece by September to help the government pay its bills and avoid a default whose effects could ripple worldwide.
Even before a new package is in place, concerns about Greece could cause investors to pull money out of other vulnerable eurozone states, such as already bailed-out Portugal and Ireland and much larger Spain and Italy.
Portugal’s financial plight deepened yesterday as the interest it pays on loans jumped higher and its stock market slumped, a day after its government bonds were downgraded to junk status. Stocks fell all round Europe, but especially in Spain and Italy.
The bankers’ private talks in Paris, under the auspices of the Institute of International Finance, ended in the early afternoon, spokesman Frank Vogl said, without revealing what if anything was decided....
Eurozone governments want substantial private sector contributions to a new rescue deal for Greece, so the whole burden doesn’t fall on taxpayers, many of whom are angry at having to bail out a country long seen as sloppy with its finances.
--more--"
Related: IMF signs off on loan payment to Greece
