Euro zone would charge Greece more than 6 pct-sources

BRUSSELS, April 9 (BestGrowthStock) – Greece would have to pay more
than 6 percent to get emergency euro zone loans for up to 3
years and even more if the loan were to be for longer, euro zone
sources said on Friday.

Euro zone sources with knowledge of the discussions on the
subject held by deputy euro zone finance ministers and central
bankers on Thursday and Friday said the rates at which Greece
would be offered emergency loans were based on International
Monetary Fund formulas.

“According to the calculations we were given, given current
yield curves, the equivalent of the EU formula would be well
above 6 percent,” said one euro zone source said.

A second source confirmed the rate would be more than six
percent. Both noted the calculations were complex, because they
were based on a three-month Special Drawing Rights rate that
needed to be converted to 3-year rates using swap rates.

According to the formula, there would also be an extra 300
basis points on top of the SDR rate and an additional 50 basis
points service charge.

For loans over 3 years maturity, there would be an
additional 100 bps penalty charge, the first source said.

The source said there were no amounts discussed at the
meeting, and that it would be up to the European Commission and
the European Central Bank to suggest an appropriate amount of
loans, should Greece ever ask for assistance.

“It would be a substantial amount I guess, something
sufficient to shock the market,” the source said.

“Similarly as in the case of Hungary, when they were given
so much money that speculators actually got burned and Hungary
didn’t actually use that money,” the source said.


(Reporting by Jan Strupczewski, editing by xxxxx )

Euro zone would charge Greece more than 6 pct-sources