September 30, 2011 / 3:09 PM / 8 years ago

Factbox: Coming events in the euro zone debt crisis

(Reuters) - Following are upcoming events linked to the debt crisis in the euro zone:

EUROPEAN UNION:

October 3 - Meeting of Eurogroup (euro zone finance ministers, central banks and EU commissioners) in Luxembourg. It will be too soon to make a decision on granting Greece’s next loan tranche, without which it will default.

October 4 - Meeting of EU finance ministers in Luxembourg.

October 13 - Special Eurogroup meeting, probably to rule on Greece’s next tranche.

October 17/18 - Summit of EU heads of state and government in Brussels. Expected to discuss next steps to tackle the euro zone debt crisis, such as leveraging the EFSF rescue fund and bringing forward the creation of its permanent replacement, the

ESM.

November 7 - Meeting of Eurogroup in Brussels.

November 8 - Meeting of EU finance ministers in Brussels.

November 29 - Meeting of Eurogroup in Brussels.

November 30 - Meeting of EU finance ministers in Brussels.

December 9 - Summit of EU heads of state and government in Brussels.

G7/G8/G20 MEETINGS:

October 14/15 - G20 finance ministers meet in Paris. Pressure will be heaped on euro zone ministers to move faster on new debt crisis measures. But with an EU leaders summit set for a few days later, concrete proposals may not result.

November 3/4 - G20 annual summit in Cannes, France. If no new euro zone crisis-fighting steps are announced by this point, markets are likely to react badly.

POLITICS:

Greece hopes to clinch a deal with its international lenders and secure its next tranche of bailout funds after announcing more austerity measures. The troika of EU/IMF/ECB inspectors has returned to Athens to resume its fifth performance review ahead of a sixth 8 billion euro loan disbursement. Inspectors suspended talks with Athens earlier in September after the government failed to meet fiscal pledges under terms of its bailout. The next tranche must be paid by mid-October if Greece is to avoid running out of money.

Greece is working on implementing a voluntary bond swap of government bonds with longer maturity paper, aiming to conclude the global transaction in October.

October 5 - Greece’s main public and private sector unions strike to protest against austerity measures — higher taxes, pay cuts and feared layoffs to shrink the public sector.

October 7/8 - The troika is expected to have completed its review of the Greek government’s books by this point.

GOVERNMENT DEBT SUPPLY:

Monthly T-bill sales are Greece’s sole remaining route to market funding. The debt-choked country needs to roll over 4.0 billion euros of T-bills maturing in October.

October 7 - Debt agency announces amount of 6-month T-bills to be sold October 11.

October 11 - Debt agency auctions 6-month T-bills.

October 14 - A previous 2.0 bln euro issue matures.

October 18 - Auction of 3-month T-bills.

October 21 - A previous 2.0 bln euro issue matures.

ITALY:

Italy, after a long period of prevarication, passed a much-altered austerity plan earlier this month to try and steer clear of the debt crisis but its bond yields are only being kept at manageable levels with European Central Bank support.

The focus now shifts to whether a weak and scandal-plagued government can implement the promised reforms and if more austerity measures will be needed to head off the need for outside help. By common consent, an Italian bailout would overwhelm existing euro zone rescue funds.

POLITICS:

Week to October 7 - Government expected to decide on replacement for Mario Draghi as central bank governor.

October 28 - Prime Minister Silvio Berlusconi expected to attend graft trial where he is accused of bribing British lawyer David Mills.

DEBT ISSUES:

Oct 11 - BOTs (short-term bills) auction.

Oct 13 - BTPs (fixed rate bonds) auction.

October 26 - BOTs and CTZs (zero coupon bonds) auctions.

October 27 - BTPei (eurozone index-linked fixed rate bonds).

REFORM:

The Bank of Spain said on Friday its banking system recapitalization program was sufficient even in adverse stress test conditions and that 96.4 percent of banks have completed their recapitalization plans. It took over three unlisted saving banks to wrapup the restructuring process.

GENERAL ELECTIONS FOUR MONTHS EARLY:

Spain’s Socialist Prime Minister Jose Luis Rodriguez Zapatero, has brought forward general elections set for March 2012 to November 20, 2011. The conservative opposition Popular Party has a healthy poll lead. Spain has gone a long way with its austerity measures but its decision this week to shelve a partial sale of the state lottery suggests electoral politics are starting to impinge.

DEBT ISSUES:

October 6 - 3, 6-month T-bills.

October 6 - 2014 bond.

October 11 - 12, 18-month T-bills.

October 20 - Bond auction.

POLITICS:

Germany’s upper house of parliament, the Bundesrat, is expected to ratify changes to Europe’s EFSF bailout fund on September 30 after the lower house approved them a day earlier.

The Free Democrats (FDP), junior coalition partner in Chancellor Angela Merkel’s center-right government, hold a summit on October 23-24 to prepare for their November party congress.

The FDP’s ratings have plummeted in opinion polls to between 2 and 5 percent from 14.6 percent in the last general elections in 2009. The FDP has been a partner in more post-war governments than any other party.

IRELAND:

Ireland, as of the end of June 2011, had drawn down a third of the 67.5 billion euros in loans it is taking from the EU and the IMF as part of its 85 billion euro bailout package, at an average interest rate of 5.6 percent. It has received 7.4 billion euros from the IMF and 15.6 billion from Europe’s bailout funds.

BANKING RECAPITALISATION PLANS:

Dublin has recapitalized the country’s four remaining lenders to meet its target under the EU-IMF bailout. It had earmarked 17.6 billion euros to meet the 24 billion euro bill with the rest coming from imposing losses on banks’ junior bondholders and asset sales.

IMF PACKAGE:

End Q3 2011 - Legislation to liberalize legal and medical services sectors, including pharmacists.

End Q3 2011 - Pension entitlements for new entrants to the public service will be reformed with effect from 2011.

End Q4 2011 - Government will, by end-October, set out a medium-term fiscal consolidation plan for 2012 to 2015 outlining revenue and expenditure adjustments for each year.

End Q4 2011 - Government will propose a budget for 2012 with a budget adjustment of at least 3.6 billion euros.

End Q4 2011 - The Irish authorities will implement the strategy to underpin the solvency and viability of the credit union sectors.

End Q4 2011 - Government will propose a draft program for the disposal of state assets and discuss it with EU/IMF.

PORTUGAL:

Portugal, bailed out to the tune of 78 billion euros, has admitted its accounts fell short of expectations in the first half of the year but said it would meet this year’s target agreed with its lenders.

Portugal’s economy is expected to contract sharply this year and only return to growth in 2013 as the government enacts tough spending cuts and across-the-board tax hikes.

Prime Minister Pedro Passos Coelho said this week he could not rule out having to reinforce his country’s aid program if it was swept up in a contagion backwash should Greece default.

POLITICS:

October 1 - Unions-organized rally in Lisbon against austerity.

October 6 - Bank of Portugal publishes autumn economic bulletin.

October 15 - Rally in Lisbon organized by youth movements against austerity, precarious working conditions.

October 17 - Deadline for the government to present draft 2012 budget.

GOVERNMENT DEBT SUPPLY:

September 30 - Deadline for IGCP debt agency to present Q4 T-bill issuance program.

Source: Reuters bureaux

Reporting by David Cutler, London Editorial Reference Unit

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