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ATHENS, Greece -- The latest on Greece's financial crisis (all times local):
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12:35 p.m.
Credit
ratings agency Moody's says Greece's approval of austerity measures
"averts an immediate disorderly default and potential exit from the
euro" but warns that "risks remain elevated" given substantial
skepticism within the country on the bailout conditions.
The
Greek parliament's approval of the economic measures paves the way for
eurozone finance ministers to open talks on a third rescue package for
the country worth some 85 billion euros ($93 billion) over three years.
Moody's
notes, however, that "judging by recent events and the deep economic
problems and social divisions within society, it is highly uncertain
whether the Greek authorities have the capacity to achieve agreed
objectives and to abide by its creditor's conditions."
---
12:25 p.m.
European
stock markets are up after the Greek parliament voted through a bill of
budget savings needed to start official negotiations on a new bailout.
The
Stoxx 50 index of top European companies was up 1.4 percent in late
morning trading. Germany's DAX and France's CAC-40 were up by the same
rate. Greece's stock market has been closed since late June, when banks
were shut.
The Greek parliament's approval of
the economic measures paves the way for eurozone finance ministers to
open talks on a third rescue package for the country worth some 85
billion euros over three years.
---
12:00 p.m.
The
head of the eurozone's rescue fund says failure to conclude a bailout
deal for Greece would lead to the collapse of the country's major banks,
which he says would affect the rest of the eurozone.
Greece
wants to tap the European Stability Mechanism. To use the fund,
officials must establish the existence of a risk to the financial
stability of the entire eurozone, which many question.
ESM
chief Klaus Regling told Germany's ARD television Thursday that failure
to reach a final agreement would mean the collapse of Greece's banking
system.
He said the four biggest Greek banks
are "system-relevant," code for significant to the international
financial system, and that if they fail that would have "severe effects
not just for Greece itself ... but for the eurozone as a whole."
---
10:15 a.m.
Germany's
finance minister says the eurozone must keep to its rules as it
negotiates a new bailout with Greece, which Berlin says rules out an
outright debt cut for Athens in the eurozone.
Wolfgang
Schaeuble told Deutschlandfunk radio Thursday negotiations will
determine whether a new package is possible given Greece's increased
needs.
He added: "We will open negotiations,
we will make every effort, but we must keep to the rules because Europe
is based on the principles of democracy and the rule of law"
Schaeuble
has taken a hardline approach. Last weekend, a paper from his ministry
suggesting the possibility of a voluntary, temporary Greek euro exit
emerged. The minister said Thursday "it would perhaps be a better way
for Greece, and many say that - increasingly in Greece too."
---
10:00 a.m.
Germany's
finance minister says the Greek Parliament's approval of an austerity
package is "an important step" but is warning that talks on a final
bailout deal will be tough - and that an outright debt cut would be
incompatible with Greece keeping the euro.
Greece's
creditors demanded the Greek vote before opening full bailout
negotiations. Eurozone finance ministers must approve opening those
talks, as must Germany's Parliament in a vote expected Friday.
Finance
Minister Wolfgang Schaeuble told Deutschlandfunk radio Thursday that
making Greece's debt sustainable will be tough. Germany says a debt cut
would be illegal.
Schaeuble said: "No one
knows at the moment how it's supposed to work without a debt cut, and
everyone knows that a debt cut is incompatible with membership in the
currency union."
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