Monday, October 10, 2016

Greece: the New billion-credit – however, serious conflicts fester – THE WORLD

Sie were all still tired, the Eurozone Finance Ministers. They had just come from Washington, from the annual meeting of the International monetary Fund (IMF), back to Europe. “Everyone had a jet lag,” said Euro group chief Jeroen Dijsselbloem after the consultations which he had conducted himself. “That made life easier for me.”

Perhaps the fatigue has also contributed to the fact that the Minister showed mild. After in the past few days, the talk was that of Greece, with the reforms behind, now could be the continued payment of billions of credits decided. Until the end of October, if possible, to 2.8 billion euros are to be paid.

It is good news for Greece. The country is not currently threatened although acute state of bankruptcy as in the past year. However, the government of Alexis Tsipras would like to use 1.7 billion euros to pay debts to suppliers and service providers – that would be a financial boost for the beleaguered domestic economy.

IMF debt sustainability in Athens, is again a question

The rest should not conceal the fact, serious conflicts fester. This year will be a fight because of the further Greece-the help is still hard. Further, it remains open whether the International monetary Fund is involved in the European AIDS or whether Europe is shouldering it alone. The participation of the Fund is, above all, for Germany is of crucial importance.

How deep the trenches are, at the IMF annual meeting. The IMF has no longer the presumption that Greece is insolvent in truth. The mountain of debt from 328 billion euros, are not sustainable, argue the IMF experts. They thus call on the Europeans to do more, to take the burden of debt.

The Back-and-Forth with the IMF now seems to many in Europe, on the nerves. In may, the Euro had negotiated Finance Ministers until the early hours of the morning with the IMF on the further participation in the rescue program. At the end of the Fund said, to decide by year-end, the more participation. Now the organization calls into question, once again, the Greek debt sustainability.

ESM is to reduce the financing costs of Greece

The Eurozone Finance Ministers had rejected at the time, a debt waiver. But you said that the Euro bailout Fund, the ESM will in a first step, all companies, in order to reduce the cost of funding for Greece. In the year 2018, then will advise on further steps, such as the payment of additional billion, the Central banks made to Greek government bonds.

especially the Federal Minister of Finance Wolfgang Schäuble (CDU) is under pressure. The Union members of Parliament insist that the International monetary Fund is involved in the Greek rescue package. On the other, however, they reject a waiver of the Greece loans.

With the decision on the disbursement of funds to Greece, at least for the next few weeks, some rest. Specifically, the Euro group was only 1.1 billion euros. The decision on a further 1.7 billion euros, because the information from Athens that are missing. However, Dijsselbloem called it a “technical” Problem.

Dijsselbloem calls on the Minister of Finance

The Euro-groups-chief however warned all Parties to abide by the decisions and does not always lead once again to the discussion on Debt relief.

“I’m not going to open up the debt discussion every month in the Eurogroup,” he said. With his statement he is likely to have turned also to the address of the Greek government.

At 7. November will be a meeting of the Eurozone Finance Ministers. On the agenda are Greece.


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