The International Swaps and Derivatives Association ruled yesterday that the Greek debt restructuring deal will trigger about $3 billion in credit default swaps, a tiny fraction of the total CDS insurance on the loans. This makes the debt swap a partial “credit event,” or default. Billions of dollars are to be paid out in insurance-like [...]
|By: David Dayen Saturday March 10, 2012 11:30 am|
|By: David Dayen Sunday July 3, 2011 4:00 pm|
European finance ministers agreed to extend more money to Greece yesterday, after the Greeks fulfilled their end of the bargain by passing a severe austerity and privatization package amid mass protests. The finance ministers extended the 8.7 billion euro ($12.6 billion) loan, which added to the 3.3 billion euro loan from the IMF will get Greece through borrowing and debt service for the rest of the summer. This money essentially passes through Greece on the way to European banks, who are the main creditors.