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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)

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  • Dr. Kallol Guha

    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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  • Dr. Kallol Guha

    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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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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