Almost lost in yesterday’s brouhaha over Standard & Poor’s warning about the latest proposal for bondholder participation in a new Greek bail-out was a report published by the European Commission that, for the first time, publicly detailed just how much money Greece will need in a new three-year rescue: €172bn.
We mentioned that eye-popping figure in our coverage this morning, but the 165-page report – a detailed overview of the Commission’s findings during the run-up to this month’s €12bn aid payment – is worth a more thorough review, since it contains a lot of interesting details on just what the Greek rescue programme looks like.
As the report makes clear, it’s important to note that €57bn of that €172bn will be covered by Greece’s existing bail-out, which was scheduled to run through mid-2013. Of the remaining €115bn, Greece has vowed to raise €30bn on its own through a massive privatization effort. That leaves eurozone governments and the International Monetary Fund on the hook for the remaining €85bn.