Greece – second bail out package – “Restricted Default”
+ Leaders of the 17 Euro-zone nations agreed to a unprecedented plan to help contain the Greece debt crisis.
+ Overall plan is worth 109 billion euros ($157 billion USD), of which 37 billion euros contributed by private investors.
+ Aid package will lower interest rates from 5.8% to 3.5% and extend maturities from 7.5 years to 15 years and also includes Ireland and Portugal.
+ The European Financial Stability Fund (EFSF) will be allowed for the first time to intervene in the secondary bond markets. Germany initially blocked these measures in February.
+ It is estimated that Greece’s debt will be lowered to 125% of GDP vs the 150% currently.
+ It is believed that the largest 90 European banks will have 20 years to write off their portion of the 20 billion euros.
+ Cdn annual inflation rate fell to 3.1% in June vs 3.7% reported in May and core CPI slowed to 1.3% YoY. NBF analysts anticipate these declines will rebound next month.
+ 700 hourly BC and Yukon Finning employees rejected Finning’s 4 year proposed agreement, including wage increases of 4% in year 1, 3% in years 2 & 3, and 4% in year 4.
+ Cdn government sold its remaining stake in Chrysler Group LLC to Fiat SpA for $140 million US. Overall, the government received approximately 72% of its original investment back.