ECB loans: Greece pays 3.4 billion back – Handelsblatt

bailout Greece

The billions come from Europe in Greece

. (Photo: AP)

Greece is the first 13 billion euros obtained from the new aid program of euro partner. The money was transferred on Thursday morning, said the euro rescue fund ESM with in Luxembourg.
After the initial upfront payment from the new rescue package, Greece has paid overdue debts to the European Central Bank (ECB). Athens had the ECB repaid 3.4 billion euros, was reported on Thursday from government circles in Athens. The repayment of 3.2 billion euros of debt and 200 million euros interest was done so on time.

In addition, Athens paid reportedly back a bridging loan granted last month of 7.16 billion euros. This Greece had to pay a first payment due to the ECB and debts to the International Monetary Fund (IMF).

So the third aid package for Greece looks

• Overall, the rescue package for Greece a volume of 86 billion euros. A first payment should be 26 billion euros difficult. Time is running out, as early as Thursday has Athens overdue debts in the billions to the European Central Bank (ECB) to repay. This would be to brace for Greece hardly from its own resources. In return for the bailout, the country is committed to far-reaching reforms and austerity measures. Among other things, the government needs to restructure the state budget, clean up the financial system from bad loans, privatize state property, increase the retirement age, modernize the administration and combat tax evasion more.

• The danger seems averted for the time being. For EU Commission chief Jean-Claude Juncker is because of the third aid package clearly: “Greece will invariably remain a member of the euro zone.” Even Finance Minister Wolfgang Schäuble situation has started to moderate tones. Schäuble had spoken out in recent weeks for a temporary “Grexit”. But the finance minister had harvested a lot of criticism. On the question of whether a “Grexit” whether through the new aid package from the table, he now said: “Greece must make the choice.” The Greek Prime Minister Alexis Tsipras has called the withdrawal of his country from the euro as a financial “suicide”. In this respect, Schäuble’s words as a warning to Athens can understand the promised reforms actually implement.

• The third auxiliary program financed from the bailout fund ESM. The financial contribution of Germany to the ESM is just under 27 percent. Germany therefore liable for the new aid package of around 23.2 billion euros. This does not mean that the German taxpayer has to pay this sum indeed. This would apply only in the event that all creditors eventually have to give up all claims arising from the ESM. So far, Germany is liable for risks arising from the first two Greek packages and entitlements from the European System of Central Banks and of loans from the International Monetary Fund (IMF) with a volume of approximately 85 billion euros. Together with the third aid package so resulting good 108 billion euros.

• The Greek national debt currently stands at well 177 percent of gross domestic product. And it could get worse: The IMF expects the debt will converge within the next two years the 200 percent mark. He assumes that even with a national debt of 110 percent of economic output is questionable whether Greece can remain solvent in the long run. The IMF has called for a haircut for the country. The Federal Government considers it but nothing. The debate about a haircut was now ended, it said on Monday in Berlin. With debt relief there is, however, room for maneuver.

• A haircut means the full adoption of at least part of the existing debt. These are then completely written off by the creditors and not repaid by the debtor. According to the European treaties, such a haircut because of a so-called “no bailout” clause is actually excluded. In contrast to the debt haircut is what debt relief, as she draws the Federal Government into consideration to extensions of repayment deadlines and to reductions in interest rates. Lower interest rates have an effect similar to a haircut, because they actually reduce the claims of creditors over time. Reducing extensions of loan maturities contrast to debt not move but the payday backward.

The Euro finance ministers had agreed to the transfer of a first tranche of the aid package totaling 23 billion euros to Athens on Wednesday evening. Of which are to be used for recapitalization of ailing Greek banks tens of billions of dollars.