BRUSSELS — A second, $172 billion bailout and a deep debt write-off for financially stricken Greece will ward off a financial disaster in Europe.
Economists, however, only give the deal a slim chance of putting the country on the path to economic recovery — and steadying its place in Europe's currency union.
Agreement on the bailout, reached early Tuesday after an all-night summit of finance ministers seven months after it was first proposed, will give Greece 130 billion euros in loans through 2014 from other eurozone governments and the International Monetary Fund. It's the country's second bailout, following a 110 billion euro rescue secured in 2010 that didn't return the country to solvency.
The agreement also assumes that banks and investors owed money by Greece will take new bonds that reduce their holdings by more than half.
In return for the second bailout, Greece has agreed to painful and humiliating measures imposed by its mistrustful partners which also use the euro, annoyed after two years of what they say are broken promises to reform. Athens agreed to cut spending and wages, and to permit outsiders to supervise its finances through the presence of European Union and International Monetary Fund officials permanently stationed in Greece. The rescuers also demanded a separate account for the aid money and legal guarantees that creditors get paid before teachers, doctors and police do.
The finance ministers from Greece and the other 16 countries that use the euro wrangled until the early morning over the details of the rescue, squeezing last-minute concessions out of private holders of Greek debt who agreed to lose 53.5 percent of the face value of their investment to avoid even more severe losses.
Business
Greek bailout puts off disaster
Second bailout may not be enough to put Greece on right path
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Ad creates national buzz
Never Enough Auto Accessories is riding high after a U.S. Postal Service advertising campaign featured the speed shop in glossy magazines such as National Geographic, History Channel, Popular Photography and Scientific American.
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Score: Tap Employees for New Ideas
Every day, small business owners scour the internet, read business journals, and wrack their brains in search of new ideas for improving efficiency, attracting customers, and boosting the bottom line.
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Pool access for disabled is sparking controversy
The Obama administration is sidestepping an election-year confrontation with the hotel industry and other pool owners to give them more time to comply with access rules for the disabled.
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After NYC beer museum tour, hop on over to its bar
Beer was hip in New York long before hipsters were into craft brews, according to a new exhibit at the New-York Historical Society that traces the history of beer all the way back to drunken Colonial times.
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Recalls this week: Lamps, bike parts
Clip-on desk lamps and kitchen blenders are among this week's recalled products.
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Business View: To be healthy, we need to stop fraud
Medicare has been a ripe plum for picking by some of the most-sophisticated and not-so-sophisticated criminals. Because the law says that all claims must be paid to vendors in less than 30 days Medicare is based solely on trust.
Continued ... - Business Memoranda: 05/27/2012
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Business in Brief: 05/27/2012
Local executive to co-chair policy forum; Machine safety is the subject of program; Job training help is available for veterans; Retail sales down in April; outlook better; and more.
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Making the miles melt away
Judging by the sharply angled, aggressive nose on the 2013 Lexus GS, you might think this is a car that wants to bite your head off.
Continued ... - Saturday, May 26, 2012
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Small dairies fading away
The MacLaren brothers are third-generation dairy farmers, but they will likely be the last in their family. After working all their lives on the hillside farm in Vermont that their grandfather bought in 1939, they decided to call it quits, auctioning off their roughly 200 cows and equipment.
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Agriculture forum: A big year for local food in schools
With asparagus spears and rhubarb stalks poking up through the ground, many schools throughout northwest Lower Michigan are capping off a big year of celebrating and serving locally grown food.
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Futures File: Eurozone, investors troubled by Greek drama
The euro currency continued to sink this week, falling to the lowest price since 2010.
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Business in Brief: Michigan dairies show April milk increase
Milk production from Michigan dairy herds in April increased from last year.
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Council created in 2010 names members
Agriculture Secretary Tom Vilsack has named the members of a council created in a 2010 settlement to ensure Native American farmers and ranchers have access to Department of Agriculture programs.
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Sugar fight takes another bitter turn
The Sugar Association is accusing the makers of high fructose corn syrup of trying to candy-coat their image by calling their product a "sugar."
Continued ... - Friday, May 25, 2012
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State jobless rate drops to 8 percent
Michigan reports that the seasonally unadjusted unemployment rate dropped a full percentage point statewide and fell in all major labor markets.
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The Record: 05/25/2012
Assumed names filed in Grand Traverse County:
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Building Permits: 05/25/2012
Eastwood Custom Homes, 927 Andrew Melissa Lane, Blair Township, new home, $254,253
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Schilling's firm lays off staff
Former Boston Red Sox pitcher Curt Schilling's faltering video game company, which received a $75 million loan guarantee to move to Rhode Island in 2010, laid off its entire staff on Thursday.
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Dow wins Kuwaiti case
Dow Chemical has been awarded $2.16 billion in damages by an international arbitration court for a Kuwaiti joint venture that collapsed four years ago as the global recession took hold.
Continued ... - Thursday, May 24, 2012
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Oil below $90 for 1st time since Oct.
The price of oil dropped below $90 per barrel Wednesday, the latest milestone in a weekslong decline brought on by uncertainty surrounding economies from Europe to China.
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Scott's Harbor Grill getting new owners
Scott Neumann is selling Scott's Harbor Grill just two weeks shy of the 21st anniversary of its opening.
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Greek banks to get $23 billion
Four of Greece's leading banks are to receive a $23 billion capital injection to replenish reserves which were hit by the country's massive debt restructuring deal.
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Business in Brief: 05/24/2012
Mich. Senate OKs work-sharing bill; Feds add 2012 model year to Cruze fire probe.
Continued ... - Wednesday, May 23, 2012
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Local home sales on the rebound
Existing home sales continued to surge in the 5-county area, and sale prices also are starting to rebound.
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Beryl Makes Landfall on Florida Coast
UN Blames Syrian Forces for Shelling Houla
Raw Video: Gay Protest Blocked in Moscow
Vatican in Chaos After Butler Arrested for Leaks
Jimmy Carter Endorses Egypt's Election Results
Biden Addresses West Point Graduating Class
Dozens of Children Killed in New Syria Attack
Raw Video: Activists Allege Massacre in Syria
NJ Man Charged With Murder in Death of Patz
Support, Fun for Kids of Fallen Soldiers at Camp
Fugitive Penguin Caught, Returned to Aquarium
50 Years Later, Underground Fire Still Burning
Light Show Transforms Sydney Opera House
Raw Video: Unruly Passenger Restrained in Miami
Raw Video: Robber Uses Drive-thru Window
Raw Video: Dragon Arrives at Space Station
Calif.'s Coronado Named Nation's Best Beach
CEO Salaries Become Sore Issue in Labor Disputes
