Greece Wins EU Pledge for 4 1/2-Year Extension to Repay Bailout

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ASusilovic

Nov. 29 (Bloomberg) -- Greece is set to get an extra four- and-a-half years to repay emergency loans to match the seven- year term for the rescue Ireland received yesterday.

Greece in May got a three-year aid package of 110 billion euros ($146 billion) from the euro area and the International Monetary Fund to prevent a debt default. Ireland yesterday won an 85 billion-euro package for seven-and-a-half years at a meeting where European finance ministers said they would “rapidly examine the necessity of aligning the maturities of the financing for Greece to that of Ireland.”

“This should now kill off any remaining doubt over Greece’s ability to repay aid,” European Union Economic and Monetary Affairs Commissioner Olli Rehn said after the meeting in Brussels. He said the step, which will be preceded by talks with the Greek government, would help ensure the “debt sustainability” of Greece.

http://noir.bloomberg.com/apps/news?pid=20601087&sid=a2HLpjegSbxw&pos=7
 
In that case, why is the yield for Greece 10 yr. note at 11.946% today?

and I really want to understand the lack of sentiment behind this:

The 5 year CDS: Greece is up 0.73% to 981.2, WHY? If Greece is solid as per Olli Rehn said, their CDS should be at 100, not 981?
 
Quote from Happy Hopping:

In that case, why is the yield for Greece 10 yr. note at 11.946% today?

and I really want to understand the lack of sentiment behind this:

The 5 year CDS: Greece is up 0.73% to 981.2, WHY? If Greece is solid as per Olli Rehn said, their CDS should be at 100, not 981?
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Hum, because Greece government is still expecting some sort of debt default and restructuring ? Haven´t you heard the story that the largest CDS holders are Greek banks themselves ? It´s always good to default on its own government bonds and being paid by neighbor European countries for the bail out. At least its not "Greek bail out money", isn´t it ?
 
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