FRANKFURT (MNI) – A total credit volume of E90 billion to Greece
cannot be excluded, German business daily Handelsblatt reported
Wednesday, citing sources close to the European Commission.
A member of Germany’s federal cabinet also confirmed to the paper
that the E30 billion package for aid to Greece, agreed on over the
weekend, is only a first step.
The total amount could turn out to be “at least twice as high” as
previously established, the cabinet member told the paper.
The story sparked a 17-point widening between Greek and German
10-year bond spreads since the start of trading today. The gap now
stands at +384 bps.
Spreads had been widening since the initial positive reaction to
the news of the agreement, as markets question the aid package, given it
could face delays and legal challenges.
–Frankfurt bureau; +49-69-720142; frankfurt@marketnews.com
[TOPICS: MT$$$$,M$G$$$,M$X$$$,M$$CR$,MFGBU$,MFX$$$,MGX$$$,M$$FX$]