:00:04. > :00:14.the government and troops. $170 billion. The deal was done on
:00:14. > :00:15.
:00:15. > :00:25.the second Greek bail out. More on World Business Report.
:00:25. > :00:31.Welcome. This is World Business Report. The headlines: Ever 130
:00:31. > :00:38.billion euros in a new deal as Ura Finance Ministers agree on the
:00:38. > :00:42.terms of a new deal for Greece. Mixed trading in Asia as the euro
:00:42. > :00:46.comes against the dollar and the yen. Asian stock markets are not
:00:46. > :00:50.impressed. More than 20 countries meet in
:00:50. > :01:00.Moscow to try and pressurise the European Union into abandoning its
:01:00. > :01:02.
:01:02. > :01:05.carbon tax on airlines. After an exhausting and mammoth
:01:05. > :01:10.meeting in Brussels, eurozone finance ministers have finally
:01:10. > :01:15.reached agreement on a second bail- out package for Greece. The deal
:01:15. > :01:18.means that the Greek government will receive another rescue fund
:01:18. > :01:23.worth 130 billion euros to prevent its economy from defaulting on its
:01:23. > :01:27.debts next month. There are strict conditions attached. These are the
:01:27. > :01:33.key points: Ministers have discussed and agreed on a Greek
:01:33. > :01:39.debt target of 121 % of gross domestic product by 2020. That is
:01:39. > :01:44.slightly above the target set before. To help Athens reach about,
:01:44. > :01:49.private bondholders agree to accept a bigger loss on their investments
:01:49. > :01:55.of 53.5 % or more. This debt Exchange will help reduce Greece's
:01:55. > :02:05.debt by around 100 billion euros. The European Central Bank will pass
:02:05. > :02:06.
:02:06. > :02:14.up profit is made from buying Greek bonds, as well as other banks.
:02:14. > :02:18.The euro is jumping after this news. Let's speak to the professor of
:02:18. > :02:23.economics from the University of Athens. The immediate reaction to
:02:23. > :02:33.the news the deal is done? Relief or concern about what this means
:02:33. > :02:38.that the future? Depression at the sight of Europe remaining in deep
:02:38. > :02:44.denial over both the state of the Greek economy and the state of the
:02:44. > :02:50.eurozone. In terms of the detail, the private bondholders, they're
:02:50. > :02:56.taking a fairly big hit. The ECB is taking a chunk also. This is all
:02:56. > :03:06.about reducing debt, which is a short-term fix. What about the
:03:06. > :03:06.
:03:06. > :03:16.long-term? Greece has now officially the faulted. But Europe
:03:16. > :03:20.
:03:20. > :03:29.is calling it by a euphemism. They caught a second bail out. There are
:03:29. > :03:39.two important factors. Firstly the rate at which it repays its debts
:03:39. > :03:47.and the rate of growth. If they do not match up, you have a disaster.
:03:47. > :03:53.Greece's numbers do nobers do no. The whole deal was unsustainable. -
:03:53. > :03:56.- is unsustainable. These are all projections and forecasts. It is
:03:56. > :04:01.assumed various things will happen at certain times but it is
:04:01. > :04:11.difficult to predict these things. There will also be strict measures
:04:11. > :04:14.
:04:14. > :04:24.in force. How will this go down? Whenever one makes predictions, one
:04:24. > :04:28.
:04:28. > :04:33.will be charged -- judged by one's track record. According to troika,
:04:33. > :04:37.Greece's problem should have been sold by now. We have to judge them
:04:37. > :04:47.on the basis of previous predictions. Regarding the question
:04:47. > :04:49.
:04:49. > :04:54.of the swap, we have a new privileged class of Greek creditors
:04:54. > :05:04.who want to receive the new bonds that will be issued as part of this
:05:04. > :05:10.
:05:10. > :05:16.swap. The rest will be subordinated. Thank you.
:05:16. > :05:23.But look at the market numbers. The share market is not impressed by
:05:23. > :05:28.this story. The euro did jump at the news. What is happening on the
:05:28. > :05:33.market? If you look at the numbers today,
:05:33. > :05:42.Asian stock investors are quite disappointed by this whole Greek
:05:42. > :05:49.debt deal. They have already discounted the developments today.
:05:49. > :05:51.Most of the region's remaining in negative territory. There is a lot
:05:51. > :05:55.of scepticism about the implementation of these strict
:05:55. > :06:02.austerity measures and whether Greece will need more money again
:06:02. > :06:07.after this bail-out package. Analysts say it is not only crease
:06:08. > :06:12.facing a debt issue but also Portugal, Spain and Italy. Will
:06:12. > :06:21.they also go to the same path as crews? Will they need more money?
:06:22. > :06:26.There are many questions about the ongoing debt crisis. In Australia,
:06:26. > :06:31.commodity prices continue to rise. Gold and food prices continue to
:06:31. > :06:36.head north. If most equities were unresponsive, the equity markets
:06:36. > :06:42.were active with the euro jumping more than one in a US cent. The
:06:42. > :06:46.Japanese currency remains at six- month lows against the greenback.
:06:46. > :06:54.There was a relief rally in emerging Asian punt -- currencies
:06:54. > :06:59.with Australian and music -- New Zealand are dollars getting a lift.
:06:59. > :07:06.Thank you. There is a lot more analysis of all of that story on
:07:06. > :07:09.our website. Now to other business stories. A
:07:09. > :07:13.crowd the lines of more than 20 countries has been formed to try
:07:13. > :07:18.and pressurise the EU into abandoning its carbon tax on
:07:18. > :07:24.airlines. The countries are sending delegates to a meeting in Moscow
:07:24. > :07:27.today to discuss the best way to retaliate against the tax. The US
:07:27. > :07:33.charging airlines for all the carbon they met on flights in
:07:33. > :07:39.European airspace and will start demanding payments later this year.
:07:39. > :07:42.At the start of this year, the European unit began to charge
:07:42. > :07:47.airlines for carbon emitted on all air flights using EU s base.
:07:47. > :07:54.It is estimated that will cost the airline $300 million this year.
:07:54. > :08:00.Non-EU airlines are being charged $75 million. The US and China argue
:08:00. > :08:05.that the EU has no right to tax other countries. They're calling
:08:05. > :08:10.themselves the Coalition of the unwilling. They are meeting to
:08:11. > :08:15.discuss ways to get the EU to back down on its new aviation tax.
:08:15. > :08:20.Options include suspending free- trade deals with Europe, putting
:08:20. > :08:26.extra charges on its European airlines, or banning their own
:08:26. > :08:31.airlines from participating in the EU scheme. Airlines have until
:08:31. > :08:36.spring next year to pay their carbon taxes. If it is boycotted, a
:08:36. > :08:41.dispute could escalate. If we see large-scale noncompliance among
:08:41. > :08:45.foreign airlines, the EU would be required to do something. That
:08:45. > :08:54.could be impounding Airlines, which could lead to tit-for-tat in power
:08:54. > :09:04.and immense -- empowered mends. It could be very damaging for the
:09:04. > :09:05.
:09:05. > :09:08.airlines as a whole. Name months of delicate diplomacy lie ahead.
:09:08. > :09:14.will be difficult to extract payment from non- EU airlines if
:09:14. > :09:24.they are determined not to pay. The trick will be to allow that to
:09:24. > :09:25.
:09:25. > :09:34.happen while engaging in serious negotiations with these countries.
:09:34. > :09:38.The government seems set on a co course over carbon tax.