The new haircut episode will take place at Maximos Mansion

The new episode of the Greek haircut will be played late tonight or tomorrow morning at Maximos Mansion, when PM Lucas Papademos and deputy PM Evangelos Venizelos will meet with Charles Dallara and Jean Lemer, the heads of the IIF.

As protothema.gr reported earlier today, the involvement of the private sector seems to have been secured. The impairment for the bond portfolio of the private sector, totaling 206 billion euros, will come to 50% of the nominal value, corresponding to a cumulative loss of 70%. Of the remaining 50% apart from the haircut, 15% is expected to be given to two-year EFSF bonds and the remaining 35% to 30-year Greek government bonds with a weighted average interest rate of 3.7%. The rate will increase based on a clause associated with the growth of the economy that will increase depending on the economic outlook of recent years.

However, it is clear that the finalization of the agreement depends on the course of discussions with the Troika. The lenders have asked for additional measures of 4.5 billion euros for the biennium 2011-2012, and the government seems to have agreed on the 3 billion, with cuts mainly in the areas of public administration, defense and health, but with a remaining gap of 1.5 billion euros.

Troika received a "no" by the government today regarding the possibility of layoffs in the Armed Forces and Health, and appears to insist on cutting pensions, the 13th-14th salaries and the minimum wage. This issue will dominate tomorrow's meeting of political leaders headed by the prime minister.