bank through the european system the central banks and that's allowing the greek banks to remain liquid because they're insolvent and they're able to continue to pay out in fact it was the fourth month month over month that we've seen the clients and the central bank be central government restructure the biggest withdraw our british drawing roughly i think from fourteen point one billion to eleven billion euros so it's perfectly it's perfectly feasible perfectly possible that peace could could be a layman in that sense because it's huge if it defaults in even if it takes a haircut and that's and again that goes back to my point which is why are these banks so obsessed with not getting even the smallest haircut when we know that the greek government can't possibly pay this back and anyone that's here in greece right now knows that the greek economy is falling off a cliff and anyone who's interested in trying to get interest payments is a. not is not doing what they should be doing clearly if your creditors the only thing that creditors are cheating right now is the

. >> financial times reports that the banks have sold almost a third of their greek bonds. despite german central bank figures that shows that german banks held 16 billion euros worth of greek bonds. critics accused german banks of breaking their promise. apparently, a business is business, especially when it comes to shedding millions of risky bonds. >> i asked him at if the risks are simply too high. >> i am not sure whether it is correct that there is a lot of selling activity by financial institutions. certainly it maturing bonds will not be automatically replaced by new bonds. the amount of bonds may be declining on balance sheets. i do not think there was a big selling spree because the prices for great bonds are very depressed. there is a huge risk premium in the present crisis. it is the decision of every investor saying i will stick to my exposure in greece because the policy is credible. they are saying that there will not be a sovereign default. >> let's have a look at the share markets. we can have a look at the market in frankfurt. beginning the day at 71.59. the dow jones industrial

. >> the banks have sold a large part of their greek debt to the european central bank. the debt restructuring means that the people of europe will have to pay for this. the banks have already sold out to the european central bank. >> despite this skepticism there was a resolution showing support for a second bailout. germany will have to show that private investors will have to bring back the euro from the brink. >> the french president is going to be in berlin next friday, nicolas sarkozy. angela merkel will try the them to support their position on the 23rd and 24th of june. >> steve is here to talk about the cheerleading for christine. >> the imf has a two-horse rase between -- race between france and mexico. it is said to be unfortunate if the next person running the international monetary fund is from europe. it is becoming obvious that christine lagarde will get the job. >> her last stop was in lisbon, where the chinese development bank was having their annual meeting. she got the backing from africa for her candidacy. however, she does not have the support of ind

. >> the assets are increase and they would go to the greek central bank to borrow, not to the united states. >> do you care for another series? >> mr. chairman, thank you. i, you know, looking through a lot of these reports, and i want to go to libya and see if you can help me understand the rationale by the treasury at the research i will just read one paragraph, zero banking corporation part owned by the central bank of libya in new york branch to get 73 loans from the u.s. federal reserve in the 18 months after lehman brothers holdings collapsed. help me understand so i can explain to the people back in my district that here we are in an undeclared war any time i think we haven't lost in the military at this point but we fired a barrage of missiles and we're spending millions of dollars probably billions by now and helping other countries what does the protection if libya is gaddhafi and gaddhafi as libya or has been free perk of time and we made these loans to the affiliate to libya relationships what happens in a wartime situation where we are trying to drive gaddhafi out of bus

. >> their assets are in greece and the our greek assets and they would go to the greek central bank to borrow not to the united states. >> do you care for another series? mr. chairman, for five minutes. >> mr. chairman, thank you again. i looking through a lot of these reports i want to go to libya and you can understand the rationale by the treasury and the reserves i will just read one paragraph, the incorporation to land by the central bank of libya using the new york branch to get 73 loans from the u.s. federal reserve and the 18 months after the lehman brothers holdings collapsed. help me understand so i can explain to people back in my district that here we are an undeclared war. any time think what we haven't lost any military at this point but we certainly fired a bunch of missiles and we are spending millions of dollars probably billions by now and we are helping other countries, what is the protection if libya is gaddhafi and gaddhafi is free period of time and we made these affiliate's to libya bank's relationships, what happens in a wartime situation where we are trying

>> no, they are still, their assets are increase and they are great assets and to go to the greek central bank to borrow there, not to the united states. >> mr. green, do you care for another series? okay. mr. jones for five minutes. >> mr. chairman, thank you again. i, you know, looking through a lot of these reports, and i want to go to libya and see if you can help me understand the rationale by treasury and the reserve. i will just read one paragraph. lynde, part owned by the central bank of libya using new york branch to get 73 loans from the u.s. federal reserve in the 18 months after lehman brothers holdings collapsed. help me understand so that i can explain to people back in my district that here we are an undeclared war, i mean, anytime, and i thank god we have lost any american military at this point, but we certainly have fired a bunch of missiles. and we are spending millions and millions of dollars, probably billions by now, and we're helping other countries. .. how do you explain that to that person that each and every one of us to do that today they can't get the loans? >> how

central bank, still it would force them to collapse. it would force many german banks to collapse because they are more exposed than they would like to be to greek debt. finally, enormous recapitalization pressures on european governments to bolster the european central bank which has 45 billion euros worth of greek debt. it would trigger a new bank bailout, round of bank bailouts. it's not an attractive option. there's also the question of a gentler sort of default in the form of reprofiling of bonds by extending their maturity and opening their interest coupons. that is seen by the ecb and ratings agencies as unattractive because it will be seen as a credit' haven't. don't forget the pressure from the credit default swaps market which says we've invested in betting against greece. if greece is let off the hook and allowed to default, we're going to lose our money. we've taken very wise positions because we never thought greece would make it. there are all sorts of arguments against default at the moment. >> okay, john, many thanks. >>> the vote of confidence in prime minister george papandreou is just the first step on a continuing marathon jo

central banks -- the central bank of the central bank, as it were. this has estimated where the banks around the world are most exposed to greek debt. turns out france was suspected for about $65 billion worth of exposure. u.s., which we didn't realize, is something like $40 billion worth of exposure. germany, about $40 billion. the u.k., about $19 billion. so that is what the stakes peer playing for, if groost defaults, the weight is back on these countries around the world. >> nobody wants that, obviously. the ongoing economic turmoil still affecting the airlines. >> appalling figures. when you look back at the difference between this, we see a 78% fall, and also, we knew it was going to be a bad year. we knew we weren't going to see much growth, but it's even less, about half the growth we were expecting even back in march. >> is that fuel prices? >> of course, but also, you've got other things. you also got the japanese tsunami as well. you've also got the unrest in the middle east and north africa. one of the big survivors of the crisis has been the middle east , and, of course, problems in the middle east don't help. >> no. ja

well the european central bank has bought up a lot of greek banks so they will pay but yes it will be than the ordinary population that will pay they paid when the euro was introduced to lead to higher prices in their shops that was deeply unpopular in greece and it's now helping to create a very deep vast within the greek economy so really it is that it is no ordinary people of greece that are paying for something which they never actually asked for where the political elites of you got together decided that it would be a nice idea to have a common say but of course didn't listen to economic reality and it will be their populations that will pay the price unless of course they recognize that they have made a mistake by creating the euro and they begin to have their own currencies and manage with all of the euro that would be the appropriate way for rightly and journey. times of our run out of time here and nothing has been resolved our eyes on july third many thanks my guest today in london and in washington and thanks to our viewers for watching us here are keep see you next time an

the european central bank and the e.u. the greeks financed the initial bailout that scene of a hundred and ten billion a year when they'll start looking at ways of continuing to purslane money towards greece come to a plan b. in fact when it comes to the choice many people now increase simply don't want to help. since it's being cool and to self interest rate try. to get as much as they come. out if they are going to get the. state. property. to get almost everything. and move the home of the good people they are going to in this. seem credible but first this tradition the girl oh it certainly can it's a high cost cuts in public spending a raise in taxes and an aggressive privatization program that would mean as many public assets this is robbery this is theft this is attention on the streets of athens continues to mount violent scenes witness recently disturbing testimony to just how situations deteriorated is one of the reasons that everybody is so determined to keep greece in the euro is so that the banks don't have to take a seri

greek government is also working with the european commission with the european central bank and we did i.m.f. on a new program for the upcoming treaty is so stunning fiscal consolidation and to implement all the targets set forward a year ago so we are correcting the slippage and we are working on a new program in greece we also working. some form of private sector involvement creating no default or no credit event and we all working additional european financial means for greece so we are working on all these this is not an easy exercise let's ask india pos. we would have a positive outcome and we would reach agreement by and of the nuns if you ask me if your comfort of my own for peace yes i'm confident because you go work on it and of course you mentions something sions that's completely normal you such a delicate and difficult exercise but the outcome will be positive by the end of the. book just wanted to add two words. slowish our you're in common as to be as successful as possible in this endeavor you've got to go as europe is our strategic partner. your opinion is and the state

will bring this down in the end isn't just the greek economy or the portuguese or the irish in the end. going to bring this down is the european central bank itself an organization that all the member states have put money into and the point at which greece defaults and it's coming it could come with a couple of weeks in my opinion a point at which greece defaults you will see the european central bank itself effectively will be bust because they've used all this money buying up effectively their own bad debt and then when the hat goes round i just can't see countries like finland countries like the netherlands putting money in so we could be fairly close to the whole thing bustling but. if it does collapse in the way you're saying what happens i mean you were talking earlier and we've heard obviously that greece have talked about dropping the euro and then going back to its own the original currency but just how easy is that transition we've got can countries already in debt i mean is that really the answer to revert back to those old currencies again well the greek prime minister who just resigned as the cap and said there is no alternat

european stocks however are recovering after the greek finance ministry said a review of what's implementation of reforms by the e.u. european central bank and international monetary fund concluded quote positively critical h.b.c. is up five percent after an upgrade from citi group. and in moscow stocks took a dip after the us jobs report a raising all gains for the week the r.t.l. standard friday down one point three percent of my six one point five percent we look at the major movers you'll see the energy majors will take them. the team with gas from down two point six percent is gold was better than the market down just point two percent shares are supported by speculation about an upcoming merger with a world leading gold mine a preferred shares of his burbank now that was a good investment today it was up six point one percent at the close on reports that the bank they can but them into ordinary shaz and this could boost that liquidity ahead of privatisation michael rubenstein from what i've seen metropole wraps up with a straight. this week was a interesting way because their volume is a bit lower than usual certainly we are in the

managed to recover by the end of the session after the greek finance ministry said a review of its implementation of reforms by the e.u. european central bank and the international monetary fund the so-called troika concluded positive correlation you see is up five percent of the close after an upgrade from citi group. in moscow stocks took a departure of the us jobs report raising all gains for the week the anthias ended friday down one point three percent of my six one and a half percent energy majors were the ones taking the biggest beating gazprom was down two point six percent for news gold there was better than the market shares were being supported by speculation about an upcoming merger with a world leading gold miners preferred shares of his burbank with the outstanding performers of the day off more than six percent on reports that the bank may convert them into ordinary shares now this could be used very quickly ahead of privatization. coming back to one of our main stories no more spanish cucumbers or brussels sprouts russia will be on a diet free of european vegetables and so the government is sure they are free of life not onl

central bank says no. if it's not voluntary, the greeks say they're not sure what needs to be done but trying to form a governmenterm easily or lightly. this is an absolute sewer of a mess where there is no obvious solution. the only thing that we can say is both the imf and the europeans said that they believe that more lending will come along to greece and they will be able to get a deal. at the moment it's not immediately obvious to me how that actually plays out. >> it sounds to me like more lending at this point is putting a third mortgage when you can't pay the second mortgage unless you've got an agreement to stretch it out over a length of time and makes sense out of all of it. >> what are your choices? you have to default, restructure or hodgepodge in the middle. knowing the europeans and their ability to wait until the very last possible moment when we're just about to go over the cliff and it's all looking exceptionally grim, they will pull something out of it. we come back to this point. it might be too late for that. there are riots in greece. greece can't take much more austerity. they are absolutel

central bank says no. if it's not voluntary, the greeks say they're not sure what needs to be done but trying to form a governmente this term easily or lightly. this is an absolute sewer of a mess where there is no obvious solution. the only thing that we can say is both the imf and the europeans said that they believe that more lending will come along to greece and they will be able to get a deal. at the moment it's not immediately obvious to me how that actually plays out. >> it sounds to me like more lending at this point is putting a third mortgage when you can't pay the second mortgage unless you've got an agreement to stretch it out over a length of time and makes sense out of all of it. >> what are your choices? you have to default, restructure or hodgepodge in the middle. knowing the europeans and their ability to wait until the very last possible moment when we're just about to go over the cliff and it's all looking exceptionally grim, they will pull something out of it. we come back to this point. it might be too late for that. there are riots in greece. greece can't take much more austerity. they are a

recover by the end of friday's session after the greek finance ministry said a review of its implementation of reforms by the e.u. the european central bank the international monetary fund concluded that something . was up five percent after an upgrade from citi group. and in moscow stocks took a lot of u.s. jobs report raising. by the way the r.c.s. on the friday down one point three percent of my six one and a half percent energy majors were taking a beating with gazprom down two point six percent polish called was better than the market on stronger metal prices and shares were also supported by speculation about an upcoming merger with the world's leading miner but shares still went down by knowledge preferred shares of this burbank outstanding performers of the day they jumped more than six percent on reports that the bank may convert them into ordinary shares this could boost their liquidity ahead of privatisation. business out see we'll be back in fifteen minutes time with an update but you can always catch the latest business news out of. business headlines are next stay with us. the close up team has been to the golden grand reach

central bank, juan claude trichet. we must point out that now that the greeks have passed the awe stairty pl -- austerity plans they have to implement them. gains, modest ones though, ftse 100, up by 0.5%. lloyds banking group is moving today after confirming it will be cutting 15,000 jobs by the year 2014. >>> let's move along and talk about the currency markets. the euro has been strengthening against the dollar. currently trading at 1.4510 and the british pound bouncing back as well. that one trading, 1.6103. japanese yen at 80.37 at the moment. banks were among some of the big winners across the asia pacific region. hong kong led the charge for most the day with hsbc and the bank of communications performing especially well in that market and even though the nikkei ended the day in flat territory, citigroup stock finished about 3% higher on the tokyo exchange. is this how the markets finally settled. let's take a look at them. the nikkei putting on 0.2% for the day and the hang seng up by 1.5%. the s&p asx 200 in australia up by 1.75% on the day. over to the action on wall street on wednesday, financial also leading

greeks thank there once in the not being heard. was the russian markets closed slightly up bought in this is remain wary as u.s. central bank needs to decide on interest rates more on business in around twenty minutes till. it's seven pm in moscow this is r g coming to you live i'm nice now with our top story the number of people killed in a plane crash in northwest russia has risen to forty five after a young boy died in hospital experts are examining the doomed to pull of black boxes to establish the cause of the tragedy all family and friends have arrived at the site to pay their last respects archie's tusshar sylvia or. the relatives of the victims and the survivors some of them have already made their way here sardars still on the way a ten year old boy who passed away at the hospital with his injuries so his family definitely going through an emotional time now it will be a tough day for their families because they have the task of identifying the of bodies of the borg and also we have spoken to some of those who were first at the scene and they were telling us about what they had seen where the plane had crashed bodi