Eurozone ministers set to finalise bailout details

Eurozone finance ministers will meet in Brussels this evening, when they expect to finalise details for a second bailout for Greece together with cuts on bondholders that will trigger a temporary selective default.

Political leaders met in Athens to approve the latest austerity package for the country that will see savings of around €3.3bn on the country’s budget that include cuts to the minimum wage, pensions, health and military spending, and a 15% cut in the country’s public service.

Private creditors are to meet in Paris today to discuss the details of the debt swap on the bonds they own. They are expected to accept an average coupon of around 3.6% on new 30-year bonds. They sought initially a rate of around 4%, but this was ruled out by the troika and eurozone finance ministers last month.