{"id":40842,"date":"2015-01-13T22:54:56","date_gmt":"2015-01-14T04:54:56","guid":{"rendered":"http:\/\/www.lankaweb.com\/news\/items\/?p=40842"},"modified":"2015-01-13T15:54:33","modified_gmt":"2015-01-13T22:54:33","slug":"jvps-pack-of-lies-on-greek-bonds","status":"publish","type":"post","link":"https:\/\/www.lankaweb.com\/news\/items\/2015\/01\/13\/jvps-pack-of-lies-on-greek-bonds\/","title":{"rendered":"JVP\u2019s pack of lies on Greek Bonds"},"content":{"rendered":"

Hot News<\/em><\/span><\/h2>\n

The Janatha Vimukthi Peramuna (JVP) today complained to the Bribery Commission against 12 persons including, Mahinda Rajapaksa, Basil Rajapaksa, Gotabaya Rajapaksa and Namal Rajapaksa about alleged financial frauds committed by them. Complaints were made against former Central Bank Governor Ajith Nivard Cabraal, Carlton Super Sports Club, former Internal Trade Minister Johnston Fernando, former Ports Minister Rohitha Abeygunawardane, Tourist Board Chairman Senanka Guneratne, Managing Director of Sri Lanka Tourism Promotion Bureau Rumy Fawzer and Chairman of National Lotteries Board, as well.<\/p>\n

The complaint states that it was a widely accepted fact that the default of the bonds by the Greek Government is only matter of time. The JVP\u2019s conclusion appeared to be on the\u00a0\u00a0basis of some\u00a0hypothetical report produced by \u00a0uncorroborated\u00a0group called Center for Geoeconomic studies published on the internet in september 2010. The complaint was cut and paste from the report appeared on the internet<\/p>\n

http:\/\/blogs.cfr.org\/geographics\/2010\/09\/02\/greek-debt-2\/<\/a><\/p>\n

Greek Debt Crisis \u2013 Apocalypse Later<\/h3>\n

September 2, 2010<\/p>\n

The difference between Greek and German government bond yields can be used to estimate the market\u2019s view of the likelihood of a Greek default. The chart above shows these probabilities over different time frames on three different dates. On April 30th, no European plan was yet in place to address the ballooning Greek debt, and default was considered a real possibility in the short term. On May 11th, just after the European Stabilization Mechanism (ESM) was announced, markets sharply cut their view on the odds of default across all time horizons. However, the market\u2019s analysis of the ESM has become much more nuanced since then. On September 1st,\u00a0the market\u2019s view of the probability of default within two years was lower than before the ESM was announced, but higher over longer time frames.<\/p>\n

Greece will happily borrow from the ESM to avoid having to close its primary deficit (that is, excluding interest payments) too rapidly. Yet if Greece is successful in eliminating its primary deficit, its temptation to default will actually grow, as it can wipe out huge amounts of accumulated debt without any longer needing the financial markets to fund current expenditures. If faced with the choice between paying Greek debts and letting Greece default, its northern neighbors may, once their banks are on more solid footing, find it more attractive simply to let Greece default. This is the story line that the markets are now pricing into government bond spreads.<\/p>\n

The Truth<\/h2>\n

The truth of the fact is diagonally opposite as following reports say. JVP should not venture into unknown territories and just waste Bribery commissioner\u2019s precious time on issues that they do not comprehend at all.<\/p>\n

\u00a0Bloomberg report<\/h2>\n

Greek Bond Advance with Stocks as market softens view of Syriza<\/h2>\n

Bloomberg reported yesterday Greek Bond Advance with Stocks as market softens view of Syriza
\nhttp:\/\/www.bloomberg.com\/news\/2015-01-12\/greek-government-bonds-advance-as-market-softens-view-of-syriza.html<\/a><\/p>\n

Greece<\/strong><\/a>\u2019s bonds climbed, sending 10-year yields down by the most since October, amid easing concern that a victory for the anti-austerity Syriza party in this month\u2019s elections would result in the nation leaving the euro region.<\/p>\n

Huge investor demand for Greek five year bond<\/h3>\n

10 April 2014<\/strong><\/p>\n

http:\/\/www.bbc.co.uk\/news\/business-26967027 <\/strong><\/a><\/p>\n

The sale of long term debt by the Greek government was eight times over subscribed, the government has said.<\/strong><\/p>\n

Greece’s deputy prime minister Evangelos Venizelos said demand for 3bn euros (\u00a32.4bn) worth of five year bonds proved the country’s debt is sustainable.<\/p>\n

The sale attracted interest from 550 investors.<\/p>\n

Greece is retuning to the capital markets for the first time since its economy nearly collapsed in 2010.<\/p>\n

The Greek government had initially priced the bond to provide a return of between 5% and 5.25%.<\/p>\n

But with investor orders running at 20bn euros (\u00a316.5bn) it was able to lower the yield to 4.95% – far lower than analysts had expected.<\/p>\n

Why hedge fund managers are betting on Greek debt<\/h3>\n

Friday, 9 Jan 2015 | 2:32 PM ET<\/p>\n

http:\/\/www.cnbc.com\/id\/102325631<\/a><\/p>\n

Call it hedge-fund shuttle diplomacy. Flights from New York and London to Athens are seeing a lot of hedge fund managers.<\/p>\n

Louisa Gouliamaki | AFP | Getty Images<\/p>\n

Pensioners gather outside the Labour ministry in Athens, on December 18, 2014, during a rally against pensions cuts.<\/p>\n

The investors are meeting with the economic team of leftist leader Alexis Tsipras who, if the polls are right, could become the\u00a0next prime minister of Greece<\/a>\u00a0after elections this month.<\/p>\n

The political leader has been consistent with rhetoric that the European Union and\u00a0International Monetary Fund<\/a>\u00a0need to change the terms of a their 2012 bailout of\u00a0Greece<\/a>, and it’s gotten some market watchers concerned that the Mediterranean country will end up leaving the euro zone\u2014either of its own accord or by being pushed out.<\/p>\n

The Janatha Vimukthi Peramuna’s (JVP) complaint to the Bribery Commission<\/h2>\n

https:\/\/www.lankaweb.com\/news\/items12\/Copmplant_English.pdf<\/a><\/h2>\n

 <\/p>\n

 <\/p>\n","protected":false},"excerpt":{"rendered":"

Hot News The Janatha Vimukthi Peramuna (JVP) today complained to the Bribery Commission against 12 persons including, Mahinda Rajapaksa, Basil Rajapaksa, Gotabaya Rajapaksa and Namal Rajapaksa about alleged financial frauds committed by them. Complaints were made against former Central Bank Governor Ajith Nivard Cabraal, Carlton Super Sports Club, former Internal Trade Minister Johnston Fernando, former […]<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[12],"tags":[],"class_list":["post-40842","post","type-post","status-publish","format-standard","hentry","category-forum"],"_links":{"self":[{"href":"https:\/\/www.lankaweb.com\/news\/items\/wp-json\/wp\/v2\/posts\/40842","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.lankaweb.com\/news\/items\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.lankaweb.com\/news\/items\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.lankaweb.com\/news\/items\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/www.lankaweb.com\/news\/items\/wp-json\/wp\/v2\/comments?post=40842"}],"version-history":[{"count":0,"href":"https:\/\/www.lankaweb.com\/news\/items\/wp-json\/wp\/v2\/posts\/40842\/revisions"}],"wp:attachment":[{"href":"https:\/\/www.lankaweb.com\/news\/items\/wp-json\/wp\/v2\/media?parent=40842"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.lankaweb.com\/news\/items\/wp-json\/wp\/v2\/categories?post=40842"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.lankaweb.com\/news\/items\/wp-json\/wp\/v2\/tags?post=40842"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}