аллександар
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зарем ке успеат да вратат 90 МИЛИЈАРДИ евра.. колку време ке им треба за такво нешто бре???
Кризата во Грција (продолжетоци пред пенали)
- Креатор на темата Misirkov
- Време на започнување
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Временскиот рок е 3 години. Официјално, се зборува за 61 милијарди долари (45 милијарди евра), но неофицијално за 90 милијарди евра.
Целта е да добијат што помала каматна стапка, значи не пазарна туку да им ги наштелуваат, тоа е клучот!
А секој Германец граѓанин на другите неинфицирани земји и сталежи се прашува -- ЗОШТО?!
По волку седници и дадени гаранции, попушта притисокот ....... но, ...НО...во средата им се покачија пазарните камати на 7%. :tv:
Сепак, некој ќе мора да ги врати сите овие грдни милијарди, т.е. обичниот Грк. А денес штрајкуваат таксистите и адвокатите и така во круг.
Се надеваат на туризмот, а јас најискрено се надевам на лоша туристичка сезона за да се дозакопаат...
Целта е да добијат што помала каматна стапка, значи не пазарна туку да им ги наштелуваат, тоа е клучот!
А секој Германец граѓанин на другите неинфицирани земји и сталежи се прашува -- ЗОШТО?!
По волку седници и дадени гаранции, попушта притисокот ....... но, ...НО...во средата им се покачија пазарните камати на 7%. :tv:
Сепак, некој ќе мора да ги врати сите овие грдни милијарди, т.е. обичниот Грк. А денес штрајкуваат таксистите и адвокатите и така во круг.
Се надеваат на туризмот, а јас најискрено се надевам на лоша туристичка сезона за да се дозакопаат...
S
smart ass
Гостин
Јас пак сум сигурен дека ќе имаат лоша туристичка сезона (споредено со претходните години)...логично е,имаше нереди па скандали,башка сега и Рецесијава....нема да има многу гости..
Туку како ќе ја наштимаат каматнава стапка...мора пазарни критериуми да се почитуваат
Чунки нема да даваат за убави очи пари
А и Знак Прашалник е дали ќе се Обезбеди доволната Сума,дали наеднаш ќе се "Инјектира" па да има поизразен ефект,но ЕУ не е САД...ќе бараат и мониторинг..така да на долг рок ова е огромен проблем за Грција.
Туку како ќе ја наштимаат каматнава стапка...мора пазарни критериуми да се почитуваат
Чунки нема да даваат за убави очи пари
Тешко....мнооогу ТЕШКО за 90ка...
А и Знак Прашалник е дали ќе се Обезбеди доволната Сума,дали наеднаш ќе се "Инјектира" па да има поизразен ефект,но ЕУ не е САД...ќе бараат и мониторинг..така да на долг рок ова е огромен проблем за Грција.
@cool@
Η Μακεδονία δεν είναι Ελληνική
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http://moneynews.com/StreetTalk/george-soros-debt-greek/2010/04/14/id/355713
A European rescue deal to help Greece tackle its debt crisis is only a small step and the country could still fall into a "debt spiral," legendary financier George Soros warns.
A European rescue deal to help Greece tackle its debt crisis is only a small step and the country could still fall into a "debt spiral," legendary financier George Soros warns.
аллександар
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брз разлика кој и да е и што и да е не е убаво да се ситиш на нивна сметка ама ако им е бе... се праат манги наоколу локалки фраери изиграваат па сега ако им е...
и убаво си кажа смарт ес кога самите меѓусебе си праат рчки нормално и туризмот дека ке им се намали... и тие мерките шо им се претпоставувам ке им кренат сеа цена и на пијалоци храна облека дрн дрн дрн па да видиме како ке соберат пари... искрено и ја се надевам на лоша туристичка сезона да видат и они мука што е...
само едно ми екриво.. зашо ова не се случи месец дена барем пред да ни акнат вето.. да видев тогаш дали ке се понашаат вака... ама нема и тоа да трае многу.. пошто не им е чист гзот ке мора сега да примаат команди од други па се надевам на подобра иднина за нас македонците...
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Ajде сите странци со поседи, вили, итн. во Грција да платат 20% данок годишно. Па да знаете со кого имате работа друг пат. 
Иако ЕУ/ММФ ветија сретства, гледајте што се случува во реалноста, “Пекол’’ била ситуацијата, додека во меѓувреме може да се огласи Германскиот Уставен суд и да ј прогласи зделката како против-уставна:
Greece's debt: the horror story has only one ending
Solving the crisis in Greece will involve an enormous amount of pain, which Britain will share, says Edmund Conway.
Despite the insistence of EU officials that they have finally clinched a deal to "rescue" Greece, the bail-out is still stuck in what Hollywood producers call "development hell": the documents are not signed, the money is not yet delivered, and there are even fears that the whole plan may be struck down by the German courts as unconstitutional.
The Greeks complain that to follow the Germans' advice of solving the problem by slashing their deficit would be foolhardy, and they have a point. While in the long run everyone agrees that Greece should live within its means, if this means shutting down vast parts of its economy in the short run, its tax revenues would implode so fast that even paying the interest on its debts could be beyond its ability. And yet that seems to be the course Germany and the International Monetary Fund are plotting. The proposed villa tax is the perfect rebuke, not merely because it will hit German second home-owners, but because the Greeks can claim they are merely following orders.
But this minor skirmish disguises the real problem, which is that Greece is facing the kind of crisis that invariably ends in default. You can choose the comparison yourself: some think things look all too similar to Argentina at the turn of the millennium; others prefer Russia a couple of years earlier. In both cases, the country, having lost the confidence of external investors, had to be bailed out by the IMF; in both cases, the boost to confidence lasted only a few weeks. Ultimately, the currency collapsed and they defaulted. Roland Nash, head of research at Renaissance Capital, the Moscow-based investment bank, suspects the only reason the "bond vigilantes" haven't yet attacked is because European governments are slightly less "fair game" than was post-Communist Russia.
The constant in these examples is a country that, for a period, is allowed to live well beyond its means – in most cases by yoking its currency to another, and borrowing like there's no tomorrow. When tomorrow eventually arrives, investors wise up, realise their money is at risk, and get the hell out of there. Greece is on that precipice: its central bank has reported a rush of cash out of the country as domestic savers move their accounts to other EU nations – and who can blame them, given that they can do so almost for free?
The government's already drastic austerity plans hinge on it being able to borrow at under 5 per cent, but investors are demanding more than 7 per cent. In short, it cannot go on alone much longer. Set against the scale of the problem, the 30 billion euro loan from the EU and IMF is a mere sticking plaster.
One option would be to follow the example of Britain, which managed to erode much of its debt by allowing the pound to fall by a quarter. If the powers-that-be in Frankfurt were persuaded to allow the entire euro to fall enough, thus driving up inflation in Germany, they could avoid both Greek default and the break-up of the currency. This would right the balance between the two countries (in Germany prices are too low, in Greece they are too high, and producers too uncompetitive). The problem, again, is the scale: the euro would have to more than halve in value and Germans would have to accept inflation of around 14 per cent for five years to make the adjustment. Not something politically feasible given the country’s history of hyperinflation.
That this is the least bad option underlines the scale of the problems – which are so vast that any solution is deeply unpalatable. Though the EU's technocrats deny it, it is quite feasible to imagine Greece defaulting, or – to use lawyer-friendly jargon – restructuring its debt, over the next few years.
Less predictable are the implications for the rest of us. What is certain is that there would be an instant Lehman-style hit to the banks, as those who held Greek sovereign bonds (mainly in Switzerland, Portugal and Ireland) would have to write off chunks of their investments. But the indirect contagion could be far more damaging. Just as the collapse of Lehman Brothers raised questions about the solvency of all banks, so a Greek collapse would turn the spotlight on any country with ugly public finances and an addiction to debt.
http://www.telegraph.co.uk/finance/comment/edmundconway/7590939/Greeces-debt-the-horror-story-has-only-one-ending.html
Иако ЕУ/ММФ ветија сретства, гледајте што се случува во реалноста, “Пекол’’ била ситуацијата, додека во меѓувреме може да се огласи Германскиот Уставен суд и да ј прогласи зделката како против-уставна:
Greece's debt: the horror story has only one ending
Solving the crisis in Greece will involve an enormous amount of pain, which Britain will share, says Edmund Conway.
Despite the insistence of EU officials that they have finally clinched a deal to "rescue" Greece, the bail-out is still stuck in what Hollywood producers call "development hell": the documents are not signed, the money is not yet delivered, and there are even fears that the whole plan may be struck down by the German courts as unconstitutional.
The Greeks complain that to follow the Germans' advice of solving the problem by slashing their deficit would be foolhardy, and they have a point. While in the long run everyone agrees that Greece should live within its means, if this means shutting down vast parts of its economy in the short run, its tax revenues would implode so fast that even paying the interest on its debts could be beyond its ability. And yet that seems to be the course Germany and the International Monetary Fund are plotting. The proposed villa tax is the perfect rebuke, not merely because it will hit German second home-owners, but because the Greeks can claim they are merely following orders.
But this minor skirmish disguises the real problem, which is that Greece is facing the kind of crisis that invariably ends in default. You can choose the comparison yourself: some think things look all too similar to Argentina at the turn of the millennium; others prefer Russia a couple of years earlier. In both cases, the country, having lost the confidence of external investors, had to be bailed out by the IMF; in both cases, the boost to confidence lasted only a few weeks. Ultimately, the currency collapsed and they defaulted. Roland Nash, head of research at Renaissance Capital, the Moscow-based investment bank, suspects the only reason the "bond vigilantes" haven't yet attacked is because European governments are slightly less "fair game" than was post-Communist Russia.
The constant in these examples is a country that, for a period, is allowed to live well beyond its means – in most cases by yoking its currency to another, and borrowing like there's no tomorrow. When tomorrow eventually arrives, investors wise up, realise their money is at risk, and get the hell out of there. Greece is on that precipice: its central bank has reported a rush of cash out of the country as domestic savers move their accounts to other EU nations – and who can blame them, given that they can do so almost for free?
The government's already drastic austerity plans hinge on it being able to borrow at under 5 per cent, but investors are demanding more than 7 per cent. In short, it cannot go on alone much longer. Set against the scale of the problem, the 30 billion euro loan from the EU and IMF is a mere sticking plaster.
One option would be to follow the example of Britain, which managed to erode much of its debt by allowing the pound to fall by a quarter. If the powers-that-be in Frankfurt were persuaded to allow the entire euro to fall enough, thus driving up inflation in Germany, they could avoid both Greek default and the break-up of the currency. This would right the balance between the two countries (in Germany prices are too low, in Greece they are too high, and producers too uncompetitive). The problem, again, is the scale: the euro would have to more than halve in value and Germans would have to accept inflation of around 14 per cent for five years to make the adjustment. Not something politically feasible given the country’s history of hyperinflation.
That this is the least bad option underlines the scale of the problems – which are so vast that any solution is deeply unpalatable. Though the EU's technocrats deny it, it is quite feasible to imagine Greece defaulting, or – to use lawyer-friendly jargon – restructuring its debt, over the next few years.
Less predictable are the implications for the rest of us. What is certain is that there would be an instant Lehman-style hit to the banks, as those who held Greek sovereign bonds (mainly in Switzerland, Portugal and Ireland) would have to write off chunks of their investments. But the indirect contagion could be far more damaging. Just as the collapse of Lehman Brothers raised questions about the solvency of all banks, so a Greek collapse would turn the spotlight on any country with ugly public finances and an addiction to debt.
http://www.telegraph.co.uk/finance/comment/edmundconway/7590939/Greeces-debt-the-horror-story-has-only-one-ending.html
pearl
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Можно е викендов да побараат и официјално помош. До крајот само на оваа година треба да соберат 30-32 милијарди евра, за следните години башка муабет. Сега, на 19-ти мај им достасуваат 8,5 милијарди 10-годишни обврзници. За очекување е многу пред тоа да побараат финансиска помош. Но, има трикови и недоречености. Одлуката за давање помош мора да биде едногласна, секоја земја може да одбие, ама не и да стави вето. Не е јасно и за тоа дали одлуката треба да биде верификувана и од националните парламенти.
Се` уште не се знае и за каматната стапка. Оние пари што се договорени од ЕУ, можно е дел од нив да бидат и со променлива, врзана за EURIBOR, такашто ептен ги имаат стегнато, и да добијат по пониска сега, ќе имаат поголем товар подоцна, особено што каматите не можат да одат пониско од тоа што беа досега.
Како и да е, не им гори само под нозе, туку и над глава.
Се` уште не се знае и за каматната стапка. Оние пари што се договорени од ЕУ, можно е дел од нив да бидат и со променлива, врзана за EURIBOR, такашто ептен ги имаат стегнато, и да добијат по пониска сега, ќе имаат поголем товар подоцна, особено што каматите не можат да одат пониско од тоа што беа досега.
Како и да е, не им гори само под нозе, туку и над глава.
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“Фајненшл Тајмс“: Грција сепак се одлучи да побара помош од ММФ и ЕУ
Грчката Влада сепак се одлучи да побара помош од Меѓународниот монетарен фонд (ММФ) и од своите партнери во Европската унија, пишува „Фајненшл Тајмс“, објаснувајќи дека станува збор за „неминовен потег“ на Атина, во ситуацијата во која се наоѓа земјата.
Иако Грција инсистира дека формално не е побарана помош, испраќањето на писмо до ММФ и ЕУ за заемот што тие и го имаат ветено на атинската Влада, практично означува барање помош, па високи претставнии на Фондот на и на Унијата од Брисел во понеделник ќе се најадат во грчкиот главен град на почеток на преговорите со тамошната Влада.
Како што јави дописникот на МИА од Лондон, условите што од Грција ќе ги побараат ММФ, но и нејзините европски партнери, ќе бидат строги, па лондонскиот весник предвидува од Владата на премиерот Георгиос Папандреу да се бара натамошно намалување на буџетската потрошувачка и отпуштање на вработени во државниот сектор, затоа што Грција и понатаму има најмногу луѓе во својата админстрација.
Одлуката на Грција да се спасува со помош ММФ и на ЕУ означува капитувалација на атинската Влада пред недовербата на меѓународните пазана пари кон земјата и можноста таа вистински да се справи со сегашната криза и огромниот внатрешен долг.
Гpчката Влада досега се надеваше дека за стекнување на довербата на странските инвеститори ќе биде доволна тоа што ММФ и ЕУ претходно и ветија помош на Грција, па очекуваше тоа да помогне за позајмување на пари по пониски камати од оние кои сега се бараат.Атина сега мора да го признае поразот во таа битка за убедување на странските инвеститори, па затоа и се одлучи за директни разговори со Фондот и со своте партнери во ЕУ, надевајќи се дека тоа ќе и овозможи да дојде до поевтини кредити на меѓународниот финансиски пазар, констатира овој весник.
http://www.novamakedonija.com.mk/
Е сега, ........... минатата недела Папандреу приспомна нешто дека ќе ја намали администрацијата за неверојатни 40%, но не верувам дека го чуле јужниве, односно дека го примиле тоа дури и да го чуле.
Како башка муабет кога проблемот е долгорочен?!? Читај доле, треба да ги извадат од була да не го стават во криза целиот Европски финансиски систем, но тоа автоматски значи нови и уште поголеми проблеми подоцна.
Навистина и сериозно се зборува за сценариото Германија да го напишти еврото!:salut:
Greece calls for talks with EU and IMF on 45bn credit line;
Morgan Stanley warns of German exit from euro
The Greek government last night said it was seeking formal "consultations" with the EU and the IMF on activating the Ђ30-Ђ45bn bailout package agreed by eurozone leaders last weekend. Greece's Finance Minister, George Papaconstantinou, said Athens wanted to discuss "a multi-year economic policy programme with the Commission, the European Central Bank and the International Monetary Fund", according to the FT.
Meanwhile, the Telegraph reports that Morgan Stanley has warned that the Greek debt crisis is setting off a chain of events that may prompt German withdrawal from the eurozone. Joachim Fels, Head of Research, wrote in a note to clients, "Obviously, we have not reached the end game yet. However, with the latest developments, such a break-up scenario has clearly become more likely." He added that a bail-out for Greece may be necessary to avoid a crisis for Europe's financial system, but warned that it also "sows the seeds for potentially even bigger problems further down the road".
Handelsblatt comments: "For the Germans it is no longer a question of whether they must pay, but how much." FAZ argues, "How one keeps speculators in check, should be learnt by the amateurs in Brussels from the IMF in Washington. There, first the conditions for help are discussed before the money is granted. In the Eurozone, it is the opposite...The worst thing, apart from the breach of the [no bailout clause in the] Treaty is that the Greeks will only be able service maturing debts with the aid...the first aid won't be the last."
The Economist argues that the proposed 45bn rescue plan has "merely bought time--three years, in effect, to contain the adverse consequences of a possible Greek default" and that "an eventual restructuring of Greek debt remains highly likely." The article suggests Greece would require a figure closer to 75bn based on assumptions, including that the economy would start to grow again in 2013.
Irish Times WSJ Guardian Guardian 2 City AM FT FT 2 BBC EUobserver European Voice Le Figaro Mail Telegraph BBC FAZ Times Economist: Leader Economist Les Echos La Tribune Le Monde EurActiv Les Echos 2 Economist: Charlemagne WSJ: Fidler Guardian: Pratley Guardian: Elliott Handelsblatt: Comment FAZ: Comment FAZ FAZ 2 Welt Handelsblatt Reuters
pearl
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Со башка муабет сакав да кажам дека она што сега се прави паниката што се дига е само мала прашинка од бурата што допрва доаѓа. Помошта која сега се договара е само да се санираат краткорочните и најмногу видливите последици. Оваа 2010 не е толку страшна, ќе им дадат пари да се покријат. Но, што правиме со следните две години, за кога се очекува да им требаат многу повеќе: 46 милијарди (2011) и 45 милијарди (2012). И овие бројки се направени под многу оптимистичката претпоставка дека ќе го намалат дефицитот на 6,3% и 3,8%. Ако не успеат во тоа и дефицитот остане на сегашното ниво, овие суми погоре ќе пораснат на 53 и 55 милијарди.
Не знам дали во ЕУ воопшто и се говори за ова и дали нивната јавност е запознаена со овој факт, дека она што сега им го понудија е само ставање фластер на рана, додека остатокот од телото има изгореници од трет степен.
Јас сум на мислење дека Германија ќе им даде помош, не од што ги сакаат туку затоа што ќе заработат на тоа. Франција исто, а и другите поголеми земји. Цената на спасот може и најверојатно ќе ја платат помалите земји. Пластично кажано е следново. Земјите ќе излезат на пазар да позајмат пари, што потоа ќе им ги дадат на циганската багра за 5% (да кажеме). Големите и оние со добар кредитен рејтинг ќе можат да се задолжат со помалку од 5%, што ќе рече, ќе бидат во ќар со овој дил. Но, оние помалите, ситните риби, кои можеби ќе треба да се задолжат со над 5%, испаѓа дека им давааат на циганите (во кајче) бесплатно.
Anyway, измешана е политичка и финансиска игра. Јужните педери сакаат уште сега да договорат долгорочна помош и уште сега да договорат каматна стапка, што само луд би го прифатил. Да кажеме, во моментов yield-от е меѓу 6-7%. Но, има еден трик што не знам дали се спомнува. Во моментов Fitch ги рангира циганските обврзници на (BBB-) Negative Outlook. Додека Moody's ги рангира за три нивоа повисоко, на BBB+/A3 (невидена дискрепанца досега!!!) и тоа само од причина да можат да бидат прифатени во репо договори со Европска Централна Банка. Сметам дека другата причина е да го држат spread-от во оние 6-7% додека договорат сума и цена на задолжување. Кога ќе се случи downgrade, а ќе се случи, тогаш ќе се види колку навистина пазарот го вреднува циганскиот збор дека ќе ги врати парите. Циганите си остануваат цигани, па дури и кога молат за помош.
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@cool@
Η Μακεδονία δεν είναι Ελληνική
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Демек биле многу лути... :tv:
Greeks’ Anger Rises as EU, IMF Prepare for Athens Bailout Talks
April 19 (Bloomberg) -- European Union and International Monetary Fund officials are due to travel to Athens this week to start laying down conditions for a 45 billion-euro ($61 billion) bailout package as public anger mounts over more austerity measures.
Prime Minister George Papandreou’s decision to call for the talks prompted a reaction of “rage” among 48 percent of Greeks surveyed in a poll in the Eleftheros Typos newspaper yesterday. Nine of 10 people surveyed said they expected the IMF to insist on more belt-tightening. Labor unions have threatened new strikes over the prospect of more budget cuts.
“The Greek government has managed to ride out the storm of public protest, which for the most part has been reasonably peaceful,” Colin Ellis, an economist at Daiwa Capital Markets Europe Ltd. in London, wrote in an e-mail to investors. “But if public opposition to further austerity measures hardens, the Greek government could find it even tougher to put the public finances back on a sustainable footing.”
The talks in Athens, which originally were scheduled to start today, have been delayed until April 21 because of the volcanic ash cloud disrupting European air travel, the Greek Finance Ministry said yesterday. Officials from the European Central Bank also will attend the discussions.
Greece needs to raise almost 12 billion euros to cover bonds maturing in May. The country’s financing costs remain at levels that Papandreou has called “unsustainable” as the tax increases and wage cuts his government has implemented have done little to convince investors he can make good on pledges to trim the EU’s biggest budget deficit.
The yield on the country’s benchmark 10-year bond rose to 7.445 percent on April 16. That is more than twice the yield on Germany’s comparable bond and near the post-euro record of 7.51 percent reached on April 9.
Emergency Meeting
The jump in Greece’s financing costs prompted an emergency meeting of EU finance ministers to hammer out the three-year bailout agreement. Under the plan, the EU will put up 30 billion euros in the first year and the IMF as much as 15 billion euros. As a condition for the loan package, the IMF may demand Greece reduce spending on civil servants and pension payments, according to Giada Giani, an economist at Citigroup Inc. in London.
The Greek crisis has helped push the euro down 5.7 percent this year as EU leaders failed to convince investors they could defend Greece and impose fiscal discipline after the global financial turmoil led to a surge in deficits across the region. EU finance ministers are seeking to have more influence over national budgets before they are adopted by member governments to avoid a repeat of the problems in Greece.
‘Make Sense’
“We have to be more careful when it comes to the preparation of annual budgets,” Luxembourg’s Jean-Claude Juncker, who leads the group of euro-area ministers, said at a meeting of EU finance chiefs in Madrid on April 16. “It would make sense for finance ministers to discuss the budgets before they are cleared by parliaments.”
Greece has raised enough funds to cover more than 10 billion euros in debt maturing in April, but still needs to sell more bonds to finance the deficit and pay back 8.5 billion euros of bonds maturing May 19. Greek officials plan a presentation to U.S. investors this month before a possible dollar-denominated bond sale.
Demand for that sale may determine whether Greece asks for the emergency loans. The government will decide whether to activate the bailout “in the next few weeks,” Papandreou said in an interview with Newsweek magazine, according to a transcript provided yesterday by his office.
Greece’s Finances
“Investors remain wary the country can roll over its debts without external assistance,” Mansoor Mohi-uddin, chief currency strategist in Singapore at UBS AG, said in an e-mail to investors. “Clearly, yields above 7 percent at present are unsustainable for Greece’s finances. With its economy expected to contract this year, paying such interest rates on new bonds will only raise its debt/GDP ratios further.”
Papandreou has already raised taxes and cut spending and wages to try to reduce the budget shortfall from 12.9 percent of gross domestic product last year to 8.7 percent this year, a reduction worth almost 10 billion euros. EU officials have indicated the effort may be enough to lend the funds earmarked for the first year of the rescue plan.
The Athens talks will focus on future austerity measures needed to get the deficit within the EU limit of 3 percent of GDP by the end of 2012. Papandreou has pledged to overhaul the country’s pension system and increase the retirement age to reduce government spending more.
Greece’s biggest unions threatened new strikes and a “social storm” if the government cuts pension benefits. Civil servants already plan their third 24-hour strike of the year for April 22 to protest the austerity measures.
To contact the reporter responsible for this story: Andrew Davis at abdavis@bloomberg.net
Last Updated: April 18, 2010 19:00 EDT
Greeks’ Anger Rises as EU, IMF Prepare for Athens Bailout Talks
April 19 (Bloomberg) -- European Union and International Monetary Fund officials are due to travel to Athens this week to start laying down conditions for a 45 billion-euro ($61 billion) bailout package as public anger mounts over more austerity measures.
Prime Minister George Papandreou’s decision to call for the talks prompted a reaction of “rage” among 48 percent of Greeks surveyed in a poll in the Eleftheros Typos newspaper yesterday. Nine of 10 people surveyed said they expected the IMF to insist on more belt-tightening. Labor unions have threatened new strikes over the prospect of more budget cuts.
“The Greek government has managed to ride out the storm of public protest, which for the most part has been reasonably peaceful,” Colin Ellis, an economist at Daiwa Capital Markets Europe Ltd. in London, wrote in an e-mail to investors. “But if public opposition to further austerity measures hardens, the Greek government could find it even tougher to put the public finances back on a sustainable footing.”
The talks in Athens, which originally were scheduled to start today, have been delayed until April 21 because of the volcanic ash cloud disrupting European air travel, the Greek Finance Ministry said yesterday. Officials from the European Central Bank also will attend the discussions.
Greece needs to raise almost 12 billion euros to cover bonds maturing in May. The country’s financing costs remain at levels that Papandreou has called “unsustainable” as the tax increases and wage cuts his government has implemented have done little to convince investors he can make good on pledges to trim the EU’s biggest budget deficit.
The yield on the country’s benchmark 10-year bond rose to 7.445 percent on April 16. That is more than twice the yield on Germany’s comparable bond and near the post-euro record of 7.51 percent reached on April 9.
Emergency Meeting
The jump in Greece’s financing costs prompted an emergency meeting of EU finance ministers to hammer out the three-year bailout agreement. Under the plan, the EU will put up 30 billion euros in the first year and the IMF as much as 15 billion euros. As a condition for the loan package, the IMF may demand Greece reduce spending on civil servants and pension payments, according to Giada Giani, an economist at Citigroup Inc. in London.
The Greek crisis has helped push the euro down 5.7 percent this year as EU leaders failed to convince investors they could defend Greece and impose fiscal discipline after the global financial turmoil led to a surge in deficits across the region. EU finance ministers are seeking to have more influence over national budgets before they are adopted by member governments to avoid a repeat of the problems in Greece.
‘Make Sense’
“We have to be more careful when it comes to the preparation of annual budgets,” Luxembourg’s Jean-Claude Juncker, who leads the group of euro-area ministers, said at a meeting of EU finance chiefs in Madrid on April 16. “It would make sense for finance ministers to discuss the budgets before they are cleared by parliaments.”
Greece has raised enough funds to cover more than 10 billion euros in debt maturing in April, but still needs to sell more bonds to finance the deficit and pay back 8.5 billion euros of bonds maturing May 19. Greek officials plan a presentation to U.S. investors this month before a possible dollar-denominated bond sale.
Demand for that sale may determine whether Greece asks for the emergency loans. The government will decide whether to activate the bailout “in the next few weeks,” Papandreou said in an interview with Newsweek magazine, according to a transcript provided yesterday by his office.
Greece’s Finances
“Investors remain wary the country can roll over its debts without external assistance,” Mansoor Mohi-uddin, chief currency strategist in Singapore at UBS AG, said in an e-mail to investors. “Clearly, yields above 7 percent at present are unsustainable for Greece’s finances. With its economy expected to contract this year, paying such interest rates on new bonds will only raise its debt/GDP ratios further.”
Papandreou has already raised taxes and cut spending and wages to try to reduce the budget shortfall from 12.9 percent of gross domestic product last year to 8.7 percent this year, a reduction worth almost 10 billion euros. EU officials have indicated the effort may be enough to lend the funds earmarked for the first year of the rescue plan.
The Athens talks will focus on future austerity measures needed to get the deficit within the EU limit of 3 percent of GDP by the end of 2012. Papandreou has pledged to overhaul the country’s pension system and increase the retirement age to reduce government spending more.
Greece’s biggest unions threatened new strikes and a “social storm” if the government cuts pension benefits. Civil servants already plan their third 24-hour strike of the year for April 22 to protest the austerity measures.
To contact the reporter responsible for this story: Andrew Davis at abdavis@bloomberg.net
Last Updated: April 18, 2010 19:00 EDT
@cool@
Η Μακεδονία δεν είναι Ελληνική
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Greece has simply been borrowing too much money and lived with the delusion that the rest of the EU would bail it out. European media are paying more attention to Greece's very bad case of financial and political corruption.
http://www.strategypage.com/qnd/balkans/articles/20100418.aspx
http://www.strategypage.com/qnd/balkans/articles/20100418.aspx
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Soros: Greece Faces 'Death Circle' of High Loan Rates
http://moneynews.com/Economy/george-soros-greece-loan/2010/04/19/id/356174
http://moneynews.com/Economy/george-soros-greece-loan/2010/04/19/id/356174