Brand New Greek Bailout rumours Hit, Government Denies, Markets Rally


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Chaos and rumours continue to swirl around Greece.The latest comes from the newspaper Kathimirini, which says the IMF is considering disbursing another 30 billion euros in aid to the stricken nation. In return, Greece would have more aggressively with austerity, a combination that’s been horrible for the country so far.

The market likes the news. Greece yields are lower, and the Athens Composite is rallying 1.1%.

But the government is denying the news.

More from Kathimrini:

Sources told Kathimerini that the IMF foresees the pledging of between 80 and 100 billion euros in loans to Greece by 2013 — that is some 30 billion euros more than the loans Greece was promised in the original memorandum. Of the 110 billion euros pledged in this original pact, Greece has received 38 billion euros so far.

A new memorandum would set out new goals and a time frame for the implementation of reforms and of a privatization drive that aims to raise 50 billion euros by 2015. It is expected that the government will be asked to announce another 6 to 7 billion euros’ worth of austerity measures.

Meanwhile, markets are rallying around the world as noted here.