FINANCE | 04.02.2012
Greece stuck at 'the razor's edge' over bailout
Evangelos Venizelos, Greece’s finance minister, said Saturday that negotiations with international partners and private investors in Athens over a bailout deal were at a "very crucial stage."
He said Athens had 24 hours to come up with a solution that would enable the payout of a 130-billion-euro ($171-billion) package of emergency loans. Greece needs the money to avoid defaulting on existing debts. The country faces bankruptcy if it misses a bond repayment for 14.5 billion euros due on March 20.
On Saturday Venizelos had a telephone conference with eurozone finance ministers and resumed talks with debt inspectors from the EU, the European Central Bank and the International Monetary Fund - the three together being referred to as the "troika" - after meeting with them on Friday for 12 hours.
He said Athens had 24 hours to come up with a solution that would enable the payout of a 130-billion-euro ($171-billion) package of emergency loans. Greece needs the money to avoid defaulting on existing debts. The country faces bankruptcy if it misses a bond repayment for 14.5 billion euros due on March 20.
On Saturday Venizelos had a telephone conference with eurozone finance ministers and resumed talks with debt inspectors from the EU, the European Central Bank and the International Monetary Fund - the three together being referred to as the "troika" - after meeting with them on Friday for 12 hours.
Venizelos told reporters that his conversation with the euro group had been "very difficult." He said there was "great anxiety and great pressure from (the troika) as well as individual eurozone member states, each of which has its own priorities."
The 130-million-euro bailout might not be enough"There is a very small margin separating a successful end in (negotiations) from an impasse that could be due to a misunderstanding…We stand at the razor's edge."
Tall orders
Greece's second package of emergency loans was agreed in principle last year, but with a string of caveats. As a result, the government in Athens needs to satisfy both international partners and private creditors on a number of issues before it can receive the money.
Greece's private sector creditors have offered to write down roughly half of their Greek debts in exchange for a lump sum and fresh sovereign bonds with more favorable terms. Successful implementation of this private sector write-down is one of the pre-requisites for the implementation of the second Greek rescue package.
The emergency loans are also tied to strict budget cuts from Athens in areas like defense and healthcare spending. Other international demands include axing holiday bonuses and lowering the minimum wage - something which Greek party leaders oppose.
Austerity talks have prompted demonstrations in the capital. Greek unions argue the cuts in public spending would drive the country further into debt.
Austerity talks have prompted demonstrations in the capital. Greek unions argue the cuts in public spending would drive the country further into debt.
Greece is still negotiating with international partners and private creditors over these issues, and Venizelos did not explain in his Saturday statement why he thought a breakthrough was required this weekend.
Meanwhile, there is still debate as to whether the existing help for Greece will be enough. European Union sources have said that the rescue pacakge might require an additional 15 billion euros because of the funds needed to recapitalize weak Greek banks.
Meanwhile, there is still debate as to whether the existing help for Greece will be enough. European Union sources have said that the rescue pacakge might require an additional 15 billion euros because of the funds needed to recapitalize weak Greek banks.
sb/msh (AP, Reuters, AFP)
1 comment:
Πως είναι δυνατόν να πεισθεί ο ελλην πολίτης από τα όσα σερβίρουν Υπουργοί και κανάλια, όταν δυό χρόνια μας σερβίρουν ψεύδη και γκάφες?Υπάρχει πλήρης απαξίωση και φόβος για τα όσα συμβαίνουν.
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