Less than a week after replacing George Papandreou, interim Prime Minister Lucas Papademos faces a confidence vote in the Greek Parliament. Papademos is expected to easily pass the vote as he currently has the support of the Greece’s two largest parties.
Once the vote is completed, Papademos, a former central banker, is then expected to begin negotiations to formalize the debt relief agreement stemming from the October 26th summit meeting. This deal calls for a total of 130 billion euros ($176 billion) in emergency funding for Greece in return for a series of debt reduction measures to close Greece’s annual deficit. Greek bond holders are also expected to take a 50 percent write-off as these bonds mature.
Source: The Canadian Press
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