Poul Thomsen, the International Monetary Fund mission in Greece, met with Finance Minister Greek artist Evangelos Venizelos in Athens Greece, Friday. The European Union and the representatives of the International Monetary Fund began a new round of talks with officials in the capital of Greece in the austerity program and course Greece promised reforms.
Despite the long-awaited agreement between Greece and the investor might buy Athens some time, it will do much to fix the problem the Government financially challenged.
Representatives to the bond holders Greece is reported to have made progress Thursday toward a deal that would cut the value of their holdings by as much as 70 percent as part of a “voluntary” debt swap intended to avoid chaotic defaults.
The deal reportedly involves swapping existing bonds for a new package and paper is worth about half the value of outstanding debts. Bondholders are also being asked to accept lower interest rates on new bonds, may be tied to future economic growth in Greece, which would cut the value of the bid further.
The pressure to complete the agreement increased with each passing day. The European Union and the International Monetary Fund are insisting bondholder “hair” before releasing the next round of payments from the Fund’s bailout rescue 130 billion euros ($ 167 billion) set in October. Without these funds, Greece would not have enough money to meet bond payments 14.5 billion euros ($ 11.6 billion) since March 20.