Greece aid relief short-lived amid German anger - papers

Euphoria over a joint EU-IMF rescue deal for Greece worth €45bn (£39.8bn) appears short-lived, after angry reactions in Germany and continued concerns among bond investors any bail-out merely delays the worst.

Greek borrowing costs remain stressed, despite falling from post-EMU highs last week. The yield spread on 10-year bonds over German Bunds dropped by 45 basis points to 6.75% on Monday, the Telegraph reports.

"This is a short-run fix, not a long-run solution," says David Owen at Jefferies Fixed Income. "At the end of the day, Greece has to carry out monumental fiscal tightening even as it slides deeper into recession. They risk chasing their tale."

Mohamed El-Erian, head of the US bond fund Pimco, doused hopes his firm would step in to buy Greek debt, saying the rescue package at rates near 5% does not address the underlying "solvency challenges" facing the country.

The German taxpayers' union accused Chancellor Angela Merkel of caving into pressure, saying Germany would be left on the hook for huge liabilities.

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STUDENTS in the US are planning a revolt ahead of an appearance at their graduation by the JP Morgan chief executive, the Guardian reports.

Disgruntled students at Syracuse University in upstate New York complain the university's invitation to Jamie Dimon amounts to an attempt to use their commencement ceremony as a tool to rebuild the public image of the disgraced banking industry.

And they point out that while JP Morgan coins in record profits, the credit crunch has left many students struggling to get loans to pay their way through college.

"We want to have a vigil for everyone who had to drop out and everyone across America who is suffering from what JP Morgan represents," Adrienne Garcia, one of the protestors, told the Daily Orange, a campus newspaper.

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