Greece crisis: Athens wants 24 billion as part of the first aid package – Handelsblatt

demonstration against expected to vote of the Greek Parliament

protesters outside the Greek Parliament

(Photo: AP).

Athens Greece wants to get as a first part of a new aid package according to a newspaper report around 24 billion euros. The tranche was to be used to recapitalize banks, to repay a bridge loan and for the eradication of Greek bonds at the European Central Bank, reported Sunday the newspaper “Avgi”, which is close to the ruling party Syriza. The government is currently negotiating with donors on a third aid package worth around 86 billion euros. According to the report are of the desired 24.36 billion Euro ten billion going to the banks, 7.16 billion will be used to repay the bridging loan and go 3.2 billion to the ECB, the Greek government bonds purchased.

ELA and the Greek banks

• Ela stands for “Emergency Liquidity Assistance”, ie Emergency Liquditätshilfe.

• The aid will not be forgiven by the ECB directly, but by the respective national central bank, which also possible losses liable. The Governing Council must grant but agree.

• Strictly only be awarded to banks that only a have temporary financial bottleneck. Basically, the financial institutions must but solidly positioned, so be solvent. Critics doubt that this still applies to Greek banks.

• If the ECB set the Ela-aids, should the Greek banks already granted billions repay relatively quickly – what they can not in fact. For months, the Hellas-banks depend on Ela-dropping: from the usual supply of fresh central bank money, they are mostly cut off. Because a large part of their collateral – Greek government bonds – are not currently accepted by the ECB as collateral because they are too poor rated.

The international donors have put forward a series of demands in the negotiations with Greece according to media reports. As the newspaper “To Vima” reported Sunday Athens to withdraw the new hires in the public service, which had decided the left-wing government of Prime Minister Alexis Tsipras.

In addition, the lenders a higher taxation of shipping companies and the abolition demanded Tax Incentives for farmers, they say. The total recapitalization of Greek banks, experts estimate at up to 25 billion euros. In recent weeks, Greek citizens and businesses billions have withdrawn from their accounts.

The government could stop this with the restriction on capital movements and the closure of banks. The Athens Stock Exchange ceased trading. The financial institutions are now open again, but the limited cash withdrawals. On Monday, the stock market is open again after five weeks forced break.

More than a month after it was closed in the wake of the Greek financial crisis, however, opens the Athens Stock Exchange on Monday. However, pay until further shares with money from foreign accounts with cash or Greek nationals.

The stock market had closed on June 26 – a few hours later announced Prime Minister Alexis Tsipras for July 5 the referendum on the creditor obligations, in return for a comprehensive credit program. 61 percent of participants of the referendum voted against the pads, the government accepted a few days later, however, even more severe conditions