Greece: No stop of capital controls without fresh money – Handelsblatt

snake at ATMs

The limit on cash withdrawals in Greece remains at 420 Euros per week

(Photo: AFP).

Frankfurt / Athens In Greece capital controls According to insiders that will be well maintained even for months. The controls to stop the outflow of money would only be lifted if new money arriving, said people familiar with the matter. However, it could gradually lead to loosening. Only on Friday the company had been allowed to remit more money abroad, thereby facilitating the import of raw materials. However, the maximum limit for cash withdrawals is still a week at 420 euros.

In the opinion of the Bundesbank president and ECB Governing Council member Jens Weidmann capital controls should remain in force until the Greek banks are adequately capitalized. This is likely to drag on, as the detailed negotiations the Greek Government with the international donors through a third rescue package have not even started. It is estimated that at least 25 billion euros are needed for recapitalization. A representative of the Greek Ministry of Finance already calls for an upfront cash injection of ten billion euros.

After several unscheduled delays the talks for Greece due to start on Tuesday at expert level. Should at the latest on Thursday then the chief negotiator for the international donors should come across as Saturday night was reported from the Ministry of Finance in Athens.

Like a haircut Europe would burden taxpayers

• … pushes Greece. A partial debt relief and massive aid from the euro partners over the past five years did not make small problems of the crisis country. Given the threat of state bankruptcy will be discussed again on a haircut. He would, however, take this time directly, the European taxpayer.

• Greece’s debt are now at more than 300 billion euros. Yet in 2008, the national debt was, according to the rating agency Standard & amp; Poor’s only 109.3 percent of gross domestic product (GDP). For this year, it expects to 177.7 percent of economic output. Reason for the increase is the massive support loans of euro partner.

• 183 800 000 000 euro. The euro partners granted in a first aid package in 2010 bilateral loans of 52.9 billion euros, Germany took them 15.2 billion euros. In the second aid package of 2012 was carried out help from the euro rescue fund EFSF, but for the guarantee, the euro-zone countries. The Fund 130.9 billion euros have been paid until the expiry of the aid program on Tuesday. Germany must for 29.1 percent of the total stand straight, so for around 38 billion euros.

• In March 2012, Greece was 53 , 5 percent of the debt, especially in the private creditors, such as banks adopted. This corresponded to a reduction of about 107 billion euros. Since then Athens has debts mainly only to public bodies such as States and international organizations.

• the end of 2012 the euro countries Athens also significantly improved credit terms to. Thus, the interest payments were significantly reduced on the first packet and the second program adopted in the country by 2022. With the debt repayment Athens must also just starting from 2020 and the second program from 2023. At the same time the term of the loans to 15 on average 30 years was raised at the first program. Finally, Greece has thereby saving billions. Therefore Mache experts speak of another, “hidden” debt haircut.

• The government of the Left politician Alexis Tsipras calls that since taking office in January – but struck it with the Euro-partners on rejection , But the International Monetary Fund (IMF) doubts that Greece can bear its debt burden. On Thursday, the Fund declared a haircut was difficult to avoid if the budgetary targets would be considerably softened because of the deteriorating situation. Then would the European donors, according to IMF estimates may write off more than 53 billion euros.

• The Federal Government is in two aid packages with around 29 percent each of the total here. After the IMF scenario Federal Finance Minister Wolfgang Schäuble (CDU) would depreciate good 15 billion – its black zero in the budget would be gone if he does not skimp elsewhere.

• One possibility would be a “further extension of maturities and reduction or deferral of interest,” says economist Nicolaus Heinen of Deutsche Bank. “This would be politically easier to convey.” The IMF suggests it initially to try with another aspect of the repayment: 20 years to Greece therefore repay nothing, and then pay off over 40 years. Germany and Co. would get their money so only by the year 2075 all the way back.

Originally the talks should start in the Greek capital on Friday and then again this Monday. For the delay were alone “technical reasons” in charge, “no political or diplomatic,” it said in Athens.