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Talks between Greece and its creditors are making progress. To avert a disaster, but momentum is necessary, says the IMF’s European boss.
The Greek flag blowing in early April on the parliament building in Athens. | © Alkis Konstantinidis / Reuters
After weeks of stalemate there are, according to a newspaper report first progress in talks between Greece and its international creditors. “For some days a little more momentum in the negotiations between the three institutions, the Greek government has come,” said the European head of the International Monetary Fund (IMF), Poul Thomsen, the Reuters . This is a good development, give the reason for hope.
Despite the advances were the negotiations of the IMF, the European Central Bank (ECB) and the European Union with Athens but still “far from the target,” Thomsen said. You would have to get a lot more momentum when a timely agreement should succeed. The budget of the Greek governments would perhaps suffice to June, said the head of the IMF’s European Department. The amortization expense, which then zukämen on Greece, were very large. “We need an agreement beforehand, so that further aid loans can be paid,” warned Thomsen.
He also warned against underestimating the risks that would be associated with an exit of Greece from the euro zone. “No one should think that a Grexit without problems would be,” he said. Today Europe was indeed in a stronger position – by the ESM bailout, the banking union and the new instruments of the European Central Bank (ECB). “But would also be exposed to risks Europe,” Thomsen said. This would “depend on the economic policy response, which would give the European governments for a Grexit.”
IMF: Greece exit could doubt about the whereabouts of other States arouse
The Greek Finance Minister Yanis Varoufakis had previously warned in a televised interview from the consequences of a leak. Some people believed that the rest of Europe was sealed off by Greece and the European Central Bank have tools to separate Greece, Varoufakis said. But he doubt very much that this was the case.
The head of the IMF European Department told the Reuters , is particularly important to reduce long-term risks, such as “the risk that the euro zone would be considered a club where one can go in and out as you please. ” This could in the future doubts about the whereabouts of other states pay.
Greek banks could collateral assume
Greece threatens without additional financial support insolvency and possibly an exit from the euro , The negotiations with its lenders on a reform program – the requirement for the disbursement of the next tranche – came so far but no progress. The negotiators of the lender defendant, the Greek Government had submitted only vague suggestions.
Meanwhile, warned Governing Council member Christian Noyer, the Greek banks could soon run out of collateral that must deposit them for emergency loans. At some point, the Greek banks would likely not to be able Noyer told the newspaper Le Figaro on Monday. Therefore, the Greek government must urgently provide a program with the IMF and the euro partners on the legs to regain confidence.
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