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End of Greece? Eurogroup rejects Greek bailout extension request

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Brussels: Eurogroup president Jeroen Dijsselbloem on Saturday said 18 Eurogroup financial ministers rejected Greece’s request for an extension so that it could put the creditors’ proposals to a popular vote on July 5.

“The current financial assistance arrangement with Greece would expire on June 30,” said an official statement released by the Eurogroup after an emergency financial ministers’ meeting in Brussels.

“I am regretful to say that the programme will expire on Tuesday night,” Dijsselbloem confirmed at a press conference after the meeting. “That is the latest date we could reach an agreement.”

The creditors offered joint proposals to the Greek side on Thursday “given the prolonged deadlock in negotiations and the urgency of the situation”.

“Regrettably, despite efforts at all levels and full support of the Eurogroup, this proposal has been rejected by the Greek authorities who broke off the programme negotiations on the 26 June unilaterally,” the statement said.

Commenting on the Greek government’s response, Dijsselbloem said other members held the opinion that “today no further negotiations or talks were possible”.

Earlier in the day, the Greek government announced a suggestion to put creditors’ Thursday proposal to a popular vote on Sunday, July 5. The Greek parliament’s vote on the suggestion is under way in Athens.

The group decided to immediately reconvene a second meeting without Greek Financial Minister Yanis Varoufakis, to “discuss the consequence from the political conclusion that drew in the first meeting”.

Dijsselbloem also stressed that “the (negotiating) process was not finished”.

“The euro area authorities stand ready to do whatever was necessary to ensure financial stability of the euro area,” the statement said.

(IANS)

 

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Greeks vote in second general election

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thebalticbriefing.com

Athens: On Sunday, Greeks voted in the second general election this year to elect a new government that will implement the three year bailout agreed in the summer with international creditors.

About 9.8 million citizens of 18 years and above were registered to vote in 19,457 polling stations nationwide. The number of new voters is 108,464.

The two front-runners are former prime minister and leader of the radical-left SYRIZA party Alexis Tsipras and Evangelos Meimarakis of the conservative New Democracy party.

Alexis_Tsipras

Tsipras asked weary Greek voters to deliver a “fighting government” capable of “moving forward with difficult reforms” as he cast his ballot in the country’s closely-fought election, the fifth in six years.

“The Greek people will take their future into their own hands… and seal the transition to a new era,” Tsipras said in the working-class Athens district Kypseli. “I’m confident.”

Meimarakis after casting his ballot: “I believe we will have a better future for all Greeks regardless of which party they vote for.

“I hope the result will vindicate Greek people’s sacrifices,” President Prokopis Pavlopoulos said.

Stavros Theodorakis, head of the centrist small Potami party, and Fofi Gennimata, leader of the PASOK socialist party, stressed the need for consensus after the elections.

(IANS)

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Greek bailout tranche disbursed on time

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Athens: The first tranche of Greece’s new bailout programme — the third in five years — was disbursed on Thursday on time allowing Athens to repay its maturing debts to its international creditors, the finance ministry announced.

The announcement came as Prime Minister Alexis Tsipras was holding a meeting with his close aides and advisors to examine the prospect of calling snap general elections in later this year, government sources said.

2015-08-20_1840Following the ratification of the new 86 billion euros ($96 billion), three-year bailout by the European Support Mechanism (ESM) on Wednesday evening, the first loan installment of 26 billion euros was paid out, Xinhua reported citing Greek news agency AMNA.

About 13 billion euros was allocated to a special account at the Bank of Greece to automatically repay a 3.4-billion euro debt to the European Central Bank (ECB) due on Thursday, a 2.2 billion euro debt to the International Monetary Fund (IMF), and the rest to pay off the 7 billion euro bridging loan ESM granted to the country in July.

Furthermore, 10 billion euros in the form of European Financial Stability Facility bonds will be used to recapitalise Greek banks, while one billion euros will be used for the payment of overdue obligations of the Greek government to the private sector.

The development clears the way for the Tsipras to decide his next moves in the domestic political scene, analysts in Athens noted.

According to the analysts, Tsipras was considering a new confidence vote in his government soon and, in case of failure to win back his party’s “rebels”, will call for snap elections in September or October.

With dissidents within the ruling Syriza party openly blasting the government of making a U-turn on the anti-austerity platform that brought the party to power last January, early polls seem almost inevitable.

Tsipras was thinking about calling the polls as early as September 13, officials said.

The second idea is to hold the elections later in October so that the government passes some bailout policies through the parliament first, on time for the first assessment by creditors that will pave the way for the discussion on the Greek debt relief.

In order to ensure that the measures will be ratified by the assembly with no problems from Syriza MPs , the premier could close the plenary so that the draft bills are put to vote in reduced summer parliamentary sessions where he can control the appointment of Syriza deputies.

(IANS)

One response to “Greek bailout tranche disbursed on time”

  1. Note the 96 Billion $ of so called bail out money, that came from the bank, is being made available to repay- meaning- return the money to the bank. Nothing is left for investment in sectors that is likely to generate wealth that will help the nation to repay their debt. On top of this- Greece will have to privatize many of the services like healthcare, social security, etc. But the exchange between Greece and Euro is being publicized as “AID” or “HELP” which in fact is the aid and help to Bankers.

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IMF calls for Greek debt relief after bailout approval

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Brussels, Aug 15 (IANS) The International Monetary Fund (IMF) on Saturday called on eurozone leaders to offer debt relief to Greece, following the approval of a new third bailout deal.

Lagarde-Christine
www.armstrongeconomic.com

 

Greece will receive up to 86 billion euros ($95 billion) in loans over the next three years, in return for tax rises and spending cuts, BBC reported.
IMF chief Christine Lagarde welcomed the agreement but warned Greek debt had become unsustainable.

She said the country needed significant relief “well beyond what has been considered so far”.

“Greece cannot restore debt sustainability solely through actions on its own,” she added.

The first tranche of loans will be for 26 billion euros ($28 billion).

This will include 10 billion euros ($11.5 billion) to recapitalise Greek banks and 16 billion ($17.7 billion) in several instalments – the first of which will be delivered in time for Greece to repay about 3.2 billion euros ($3.5 billion) to the European Central Bank (ECB) by August 20.

European Commission President Jean-Claude Juncker said the deal sent a message “loud and clear” that Greece will stay in the eurozone.

The new bailout deal was passed on Friday.

(IANS)

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