Find EU and Greece still a way out of the crisis ? Or is it already too late? The government of Athens has now presented a reform list. All information in the news ticker.
- Athens submitted reform list.
- Central bank: exit to Athens from the euro is not an option
- ECB. Greek banks will no longer buy government bonds
- . government in Athens is considering new elections
Athens. deficit was 3.5 percent of economic output
22.13 Clock: Greece budget deficit last year have been much higher than expected. As the Greek statistical office said in a first estimate, on Wednesday, the deficit was 3.5 percent of economic output in the household. The current government until January of conservatives and social democrats had expected a deficit of only 1.3 percent, the European Commission was still in March from a deficit of only 2.0 percent. The crisis country crack once again the EU target of three percent deficit
Also, the goal for the so-called primary surplus -. Thus, the budget surplus before interest payments and debt – from the previous 1.5 percent missed Athens clear. According to the information of Wednesday, the primary surplus was only 0.4 percent last year. Given the higher deficit and total debt increased once again: She lay on the details of Athens in 2014 at 177.1 percent. The European Commission has recently assumed 176.3 percent
S & amp; P downgrades Greece down – debt unsustainable
19.59 clock. The rating agency Standard & amp; Poor “. S sees the growing threat of Greek default, the credit rating will one notch from” reduced B- “to” CCC + “, said S & P on Wednesday in London with The rating is thus even deeper into the so-called junk range of highly speculative. Bonds describes S &. P threatens the country with a further downgrade the outlook for the rating is “negative”
Without profound economic reforms or other debt relief the country could not fulfill his obligations, S & amp;.. P . The lengthy negotiations, the Greek government with its lenders have increased the uncertainty According to S &. P, the Greek economy shrank in the last six months by one percent, the conditions would deteriorate further if the discussions with the lenders. . be completed soon
Schäuble not expect a quick Greece agreement
17.26 Clock: In the Greek crisis is characterized according to estimates by Finance Minister Wolfgang Schäuble (CDU ) no quick solution. At the meeting of euro zone finance ministers next week is expected to reach agreement in Riga. “Nobody expected that there is a solution,” Schaeuble said on Wednesday in New York at an event of “Council on Foreign Relations.” In the coming weeks is probably no communication is possible. Contagion to other euro-countries in the wake of the Greek crisis does not fear Schäuble:
The key problem in Greece is the lack of competitiveness “I’m pretty optimistic that this does not happen.” , The country had to be competitive. Otherwise, threatened that helps to be a bottomless pit. But to date there is no new idea how this problem could be solved. Greece has indeed achieved better economic data since 2011. But the new government in Athens had “destroyed all those numbers” . “No one has any idea how we should agree on a more ambitious program,” Schaeuble said further
Schaeuble warned against exaggerated expectations of economic growth in Europe. “You can not expect Europe to the highest growth rates having the world. “The euro zone will not be the engine of the world economy, but to contribute to sustainable growth. Looking at the current euro weakness Schaeuble said in again recovering economy and the exchange rate will rise again
Troika discussed sovereign default without euro exit
16.39 clock.: Greece running out of money. Long may the cash-strapped country’s debt no longer be operated without additional help. Therefore, the lenders are clearly thinking about it, as Hellas despite bankruptcy can remain in the euro . From central bank sources said the Frankfurter Allgemeine Zeitung that would discuss all kinds of “gray” scenarios between a government default and euro exit for quite some time in circles of the Troika .
Neither the Greek government nor the donors wanted the country out walk out of the euro. Therefore there is no contractual provisions. “That’s why as the banks have to look survive when the state becomes insolvent ,” it said in Frankfurt.
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A default by the Greek state would the country’s banks bring in severe distress. They stopped at the beginning of this year Greek government bonds for around 15.5 billion euros, of which 9.3 billion euro short-term T-bills. “If the Greek government to choose a default that would Greek banks make significant losses and be exposed to a bank run ,” said Guntram Wolff, head of the Brussels think tank Bruegel.
In Frankfurt central bank circles is also noted that the bank guarantee will last for about 30 billion euros from the state had bonds, which would then also at risk. “The banks would then have a big problem and would again be recapitalized,” it said. But stood from the first bailout still 10.9 billion euros available, but were transferred from distrust of the ruling party SYRIZA to the person sitting in Luxembourg bank rescue fund. The donors and the German Bundestag would have such a bank rescue again new cheap .
The current events Ticker:
Athens borrows short term new money
12.28 clock The debt-ridden Greece has short fresh money in the capital markets concerned. As the state radio reported on Wednesday, citing the debt agency PDMA, a total of 812.5 million euros for 13 weeks could be added in the form of short-term government securities. Although
That is less than required by the country in two days ( one billion euros) to repay overdue debts. But the Greek financial press commentators expect that the remaining money on this Thursday flows into the treasury.
Greece needs the one billion euros to repay short-term government securities on 17 April. Athens regularly auctioned a day later under a separate process additional securities. So far, this system has brought the money. The return of the auctioned securities was – as in a same auction last month – at 2.7 percent
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