It appears that Eurostat — the EU statistical agency — could no longer ignore that controversial-if-not-at-all-new Greek currency swap.
Some headlines on Monday:
Greece Ordered by EU to Uncover Swaps by End of February
Feb. 15 (Bloomberg) — Greece was ordered by European Union regulators to disclose details of currency swaps it may have used to deal with the debts that threaten to swamp its economy.
The EU statistics office set an end-of-February deadline for Greece to provide more information on the swaps arrangements with securities firms, which do not necessarily break EU rules, European Commission spokesman Amadeu Altafaj said.
EU asking Greece to explain derivatives reports
BRUSSELS, Feb 15 (Reuters) – The European Commission said on Monday it was asking Greece to explain reports in the U.S. and German press that it engaged some years ago in derivatives deals with U.S. investment banks to cut its deficit and debt figure
And here’s Greece:
RTRS-GREEK FINMIN SAYS EXOTIC FIN INSTRUMENTS WERE LEGAL AT THE TIME, GREECE HAS NOT USED THEM SINCE
RTRS-GREEK FINMIN SAYS CURRENT GOVT HAS NOT MANDATED, CONSIDERED ANY INSTRUMENT NOT APPROVED BY EUROSTAT
We await the inevitable backlash in which various Greek types accuse the international press of being out to get them, etc.
[UPDATE] Germany is notably less than pleased with the errant Greeks – and with Goldman. Emphasis ours, via Reuters:
*MERKEL’S CDU SAYS SWAPS MUST BE NOTIFIABLE TO EU, REGULATORS
*MERKEL’S CDU FINANCE SPOKESMAN MEISTER SPEAKING IN INTERVIEW
*MERKEL’S CDU WANTS SWAP DISCLOSURE RULES FOR BANKS AND STATES
*MERKEL’S CDU SAYS WILL PUSH FOR NEW EU RULES ON BOND SWAPS
*GOLDMAN SWAP DEAL `BROKE SPIRIT’ OF EURO RULES, GERMAN CDU SAYS
Related links:
The Greeks’ swap probe – FT Alphaville
Greece’s personal wealth comedy – FT Alphaville
Fawlty Europe – FT Alphaville
Quote du jour, Greek machismo edition – FT Alphaville