Slovakia Road Block For Greek Bailout

October 12 00:00 2011

New York, October 12 ( – The road to a Greek bailout seems full with uncertainties. Just hours earlier, everything seemed hunky dory and the markets were bullish on the notion that Greek will be able to meet its immediate obligations at least. The default, therefore, if not avoided has at least been postponed. However, now there is a Slovakia road block which is causing the market to panic. In the recent trading session, all major Greek banks as well as National Bank of Greece itself took hits between 16% to 20%

Slovakia is the last country in the 17 member European Union that needs to agree to the amendments made in the bailout plan. According to sources, Slovakia is due to ratify the proposal in a very short span of time. If Slovakia decides not to put its stamp of approval, the whole deal may fall through. The Greek default has therefore yet not been postponed.

Meanwhile Slovan Miklos, the Slovakian Finance Minister showed astonishment at the adverse reaction by the markets. According to him, before the end of the week, the bailout will have to be passed one way or another.

Apparently Slovakia wants the banks to be recapitalised as well as Germany and France to take a larger share of haircut on the Greek debt.