The European Commission says it’s standing ready to give Greece whatever support it needs and that it doesn’t want a hasty end to the bailout program, according to Reuters.
“Europe will continue to assist Greece in whatever way is necessary,” a spokesman for the Commission said.
He added: “We will work to ensure a smooth evolution of support for Greece after the end of the current program.”
The Financial Times also reports that the European Central Bank will extend another €10 billion in liquidity to Greece’s banks, which have been hit hard as the Athens Stock Exchange crashes — it’s down 1.74% Thursday and more than 25% since the start of the year.
Just days ago, the Greek government planned to exit its bailout a year early. Not only does that now seem completely impossible, but it looks as if the existing level of support might not even be enough.
And now the cost of Greece’s bonds is going through the roof:
The cost of servicing Greek government debt is rapidly rising, with 10-year bond yields hovering just below 9% Thursday morning. Greece’s plans to fund itself from 2015 onward seemed like a long shot when yields were 6%, and they’re now looking absolutely ridiculous.