26th September 2011
On Saturday evening news began to spread that the Euro zone was preparing plans for a Greek default and that this default would involve a 50% write off or haircut for her existing debts. As you can imagine the news created quite a furore particularly when it emerged that the latest trip into a world of fantasy by Europe's leaders involved waiting until November! In the world of reality markets were likely to begin responding late Sunday evening UK time when Asia started trading.
The International Monetary Fund responds
At the same time the IMF put out a statement which proclaimed that it was ready to help but its position was summed up by this part of it.
"We are encouraged by the determination of our euro-area colleagues to do what is needed to resolve the euro-area crisis. We welcome that the IMF stands ready to strongly support this effort as part of its global role."
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