Crucial week for PSI, CDS and measures

In order to agree to exchange their Greek bonds with others, which will be paid in 2042, the government calls on big private investors to rush and make their purchases.

March 9 is the key date and everything should be finished in one weekend, as the Finance minister explains from Brussels: "Friday noon will see the deadline for the completion of the market response to a formal offer made by the Greek government. We must evaluate the response of the markets. This must be done before the markets open again on Monday."

To lure the bondholders, Venizelos grabs at each chance he gets to offer English law and some cash "here and now. The markets should understand how good and interesting this offer is. Well, they cannot expect anything better. And especially the more skeptical players, they should not expect anything better." However, he doesn’t seem worried about the risk of triggering the CDS, since even the bond trading platform says the Greek haircut does not entail any risks.

What comes after the PSI?

From Brussels, Evangelos Venizelos says that if and when we finish with the borrowing problems, the battle of development will seem much easier.

"Everyone asks: When will I get back part of my income that was removed? When will I have an increase in my pension or salary again instead of more cuts?"

"Once we achieve fiscal correction. Once we fiscally release the country, since from there on it will be able to run with higher growth rates."

But he avoids talking about the harsh measures of 2013-2015. While admitting that we have committed to a primary surplus of 4.5% of GDP in the coming years, he says that if we receive new revenues and a good PSI course, combined with less annual charges for interest, we may not need very tough measures, but ignoring along the way that if we return to growth rates, the deficit will grow as a percentage of the GDP that will be shrinking.

Regarding the new loans, the amounts included in the contracts signed yesterday with Olli Rehn exceed 93 billion euros. Of these, 35 billion are intended to meet the temporary liquidity of the Greek banking system, while separate contracts will cover outstanding government debts to individuals which, with the relevant interest, reach 10 billion euros.