We have highlighted in bold the important bits.
Note that while the statement says in point 12 that the notional discount is 50%, the way that the discount functions really equates to a 30% haircut (not touching the Troika or ECB debt haircuts under the "invite" to take haircuts). This will be seen as inadequate by markets.
Also note the contradiction inherent in points three and four. Plus note that point 8 implicitly means more cuts will be necessary if the present austerity makes Portugal and Ireland miss their fiscal targets.
Point 19 shows that the EFSF is to be leveraged. The ECB will not be a factor.
Brussels, 26 October 2011
source : link
Note that while the statement says in point 12 that the notional discount is 50%, the way that the discount functions really equates to a 30% haircut (not touching the Troika or ECB debt haircuts under the "invite" to take haircuts). This will be seen as inadequate by markets.
Also note the contradiction inherent in points three and four. Plus note that point 8 implicitly means more cuts will be necessary if the present austerity makes Portugal and Ireland miss their fiscal targets.
Point 19 shows that the EFSF is to be leveraged. The ECB will not be a factor.
Brussels, 26 October 2011
source : link
not euphoria follower
