- - Sunday, June 19, 2011

EUROPEAN DEBT

Eurozone delays decision on new Greek loans

LUXEMBOURG — Hours of talks between eurozone finance ministers on the imploding finances of Greece broke up early Monday morning without the ministers signing off on a vital installment of rescue loans needed to avoid bankruptcy next month.

Greece will get the next 12 billion euros of its existing 110 billion bailout euro package in early July, but only if it manages to approve 28 billion euros in new spending cuts and economic reforms by the end of the month, Luxembourg Prime Minister Jean-Claude Juncker said.

“We have to, of course, await this vote” by the Greek parliament, Mr. Juncker said as he left the meeting.
However, Mr. Juncker said that as long as the parliament supported the new measures, he was certain that Greece would also get a second bailout — on top of the existing one — that will keep it afloat in the coming years as it works to restore its struggling economy.

In a statement, the ministers said private-sector banks and other private creditors will be asked to buy up new Greek bonds as old ones mature, thereby reducing the amount of money other eurozone countries and the International Monetary Fund will have to provide.

“No pressure may be exerted on the private sector,” Mr. Juncker stressed, since any sign of coercion could force rating agencies to consider the bond-rollover as a partial default.

LAWSUIT

Oil company sued over chronic California spills

SAN FRANCISCO — Government regulators sued an oil company Friday for 21 spills of crude oil and other harmful pollutants in Santa Barbara County waterways.

The complaint says Greka Oil & Gas Co., now known as HVI Cat Canyon Inc., failed to adopt adequate plans for spill prevention and response as required by the Clean Water Act at 12 facilities, resulting in chronic spills between 2005 and 2010.

The spills resulted from facility mismanagement that led to corroded pipelines and ruptured storage tanks, according to the lawsuit that seeks tens of millions of dollars in penalties, including cleanup costs.

A company spokesman could not be reached for comment.

The U.S. Department of Justice, along with state and federal environmental and wildlife regulatory agencies, filed the complaint in federal court.

PERSONAL FINANCES

Story Continues →