Reax to eurozone loan offer to financially troubled Greece

(12 Apr 2010) SHOTLIST
1. Close up of European Union and Greek flags outside EU building
2. Mid exterior of EU building
3. Wide exterior of EU building
4. Mid of people in Syntagma square next to lottery kiosk that reads: (Greek) “(Lottery) draws tomorrow”
5. Wide of people in Syntagma square
6. Wide of Finance Ministry building
7. Various of people walking in street
8. Mid of newspaper kiosk
9. Close up of newspapers hanging in kiosk
10. Close up of newspaper TA NEA
11. Headling reading: (Greek) “The gun is a 45 one” (word game referring to gun”s calibre and EU – IMF loan being some 45 (b) billion Euros)
12. Wide of economist Vangelis Agapitos at his desk
13. Mid of Agapitos
14. SOUNDBITE (English) Vangelis Agapitos, Economist:
“Short term Greece needs lower interest rates. If the rates do not go down they will make use of the mechanism. I think it”s been a case of a domino. Greece promised, now Europe has promised. Now Greece has to take the gun and use it if the spreads do not go down.”
15. Wide of Financial newspaper “Imerisia” with headline reading: (Greek) “Critical hours for the country.”
16. SOUNDBITE (English) Vangelis Agapitos, Economist:
“At last there is a very specific solution because the markets were under the impression that in March there wasn”t really an agreement, it was just an understanding. Now we have an actual agreement which is very specific and which provides the necessary liquidity for the government to actually carry on in its measures because the Greek government does need time.”
17. Close up of newspaper headline reading: (Greek) “40 (b) billion on the table this year with interest rates between 4-5 per cent.”
18. SOUNDBITE (English) Vangelis Agapitos, Independent economist:
“Five per cent is certainly high at first reading however this is on a fixed interest not a variable interest, the variable is actually I understand around four. So four is a representative of the problems that Greece has to face compared to the other countries. It”s still one of the highest rates in the Eurozone, however it is a much more realistic level than you know the seven per cent we had to face recently.”
19. Mid of people walking along
20. SOUNDBITE (Greek) Costas Kyriakidis, vox pop:
“We are a family, if there isn”t any sort of help, then why be a family?”
21. SOUNDBITE (Greek) Athanassios Boukas, from prefecture of Argolidi, vox pop:
“I don”t know about marches. There will be poverty, there definitely will be. And Mr Papandreou should look at getting the money from those who”ve feasted on it. From everyone and not only from the poor people.”
22. Wide of Parliament building
Greece”s borrowing costs dipped Monday in positive early market reaction after eurozone countries filled in key details of their financial backstop aimed at quelling fears the heavily indebted country could default.
On Sunday, eurozone governments said they would make 30 (b) billion euro (40 (b) billion US Dollars) in loans available to Greece this year if Athens asks for the money, while the International Monetary Fund would contribute about another 10 (b) billion euros.
The finance ministers of the 16 eurozone nations also agreed on a three-year financing formula that would mean a fixed interest rate of “around 5 percent,” while the variable rate would be around 4 percent, officials said.
The rate is still above what IMF aid recipients usually pay.
But it is less than markets had been demanding in recent days.
But the downward trend in Greek borrowing costs as markets opened Monday will lead to relief in Athens, which has said it cannot go on paying the even higher interest rates demanded by jittery bond investors to loan the country money.

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