Rescue for Greece. This is a preliminary agreement on aid – Money.pl

Rescue for Greece. This is a preliminary agreement on aid – Money.pl

2015-02-20 15:49

Author: Luke Priest, ( PC), (PAP), (IAR)

[Photo: PAP / EPA]

Updating, h. 19.05

This is a preliminary agreement on further financial aid to Greece. In Brussels, the last meeting of finance ministers of the euro area and the representatives of the Greek government.

At the meeting failed to agree on a draft agreement that will allow the extension of financial aid to Greece – gave Reuters referring to the statements of the Greek delegation.

In Brussels, is precisely the key for Greece meeting of finance ministers of the euro area. The mood before the start was very tight. Greece is in fact on the verge of bankruptcy, and – as reported international news today – the Greeks rushed to ATMs to withdraw their savings from banks.

– We are confident that an agreement is possible in the foreseeable future, if everyone will be reasonable. But we are not so far away. We expect that further work is still needed – said Margaritis Schinas, a spokesman for the European Commission, asked if the Commission expects that even on Friday the Eurogroup to reach a compromise on the aid program for Greece.

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He said that the European Commission chief Jean-Claude Juncker, the actively involved in the negotiations on the agreement and contacted, among others, with some of the leaders of the euro area.

The Eurogroup, which eurozone finance ministers, meets on Friday afternoon in Brussels to decide whether they accept Greece’s request for an extension of the credit agreement.

Meanwhile, as reported on its website Der Spiegel , the European Central Bank is preparing for the possibility of a Greek exit from the euro zone. According to the newspaper ECB already checked various scenarios to maintain the unity of the euro zone after leaving her by Greece.

As we read, the ECB also pushing for the introduction of capital controls, because the Greeks every day shed abroad over a billion euros. However, the ECB denies this information. Der Spiegel adds that the International Monetary Fund believes that the euro zone could withstand so. Grexit , which is a Greek exit from the monetary union.

Meanwhile, ahead of Friday’s meeting, Greek Finance Minister Janis Warufakis expressed the hope that the meeting will be white smoke . – The Greek government has not stepped down a step, but about ten steps – Warufakis said before the meeting. He added, hopes that Greece’s partners also come to meet her to reach a compromise.

The head of the Eurogroup Jeoren Dijsselbloem informed that the matter is quite complicated, so talking to key players, to try to find a solution. – will take a bit of time. There is reason for some optimism, but it is very difficult – Dijsselbloem said. Due to the negotiations called by the extraordinary meeting began with a two-hour delay.

An aid program for Greece, which saved the country from bankruptcy, will expire on February 28. If it is not extended, the Greece will not get further loans they need. However, the new leftist government of this country wants to change the terms of lending to reforms and cuts were not as severe for society. It does not have the consent of the Eurogroup.

On Thursday, the government in Athens requested an extension of six months agreement on financial support, concluded with the European Financial Stability Fund. Within six months Greece would like to negotiate long-term contracts resulting in a reduction o f the debt of Greece and its exit from the crisis of the economy.

Greek proposal rejected on Thursday Germany, indicating that it does not contain a clear commitment to comply with the terms of the aid scheme, or continue reforms and savings. According to the media a letter from Athens found a critically Finland, Slovakia, Belgium and Portugal.

Since 2010. Greece received from the EU and the IMF 240 billion euros in rescue programs. Currently, Greece debt service allocates 5 percent of GDP. The end of February in Athens must repay 2.3 billion euros of debt, and this summer is waiting another payment – about 10 billion euros. The new Prime Minister promised to renegotiate Alexis Cipras agreement with the troika or the European Commission, the European Central Bank and the International Monetary Fund to redeem a large part of the more than 320 billion euros of debt, of which 240 billion is a financial aid to Athens in the years 2010-14 to rescue the Greek economy from bankruptcy. Greece committed itself to reforms and austerity .

If it fitted Brussels, it would mean that the reduction of Greek debt have taken place at the expense of all other taxpayers euro area countries. It obviously does not have the consent of what the word clearly gave the last French Finance Minister Michel Sapin:

– No, we will not cancel, we discuss, we delay, we can reduce the weight but not to cancel . Similarly expressed the German finance ministry spokesman Martin Jaeger, who declared that Talk about Greece’s debt reduction or to a conference on the debt is detached from reality, .

	Last reading	Previous reading	The highest value	The lowest value	unit
Source: Trading Economics
The ratio of the state budget to GDP	-12.20	-8.60	-3.20	-15.70	Percent of GDP
Public Debt to GDP	174.90	156.90	174.90	22.60	Percentage
State Budget	-1827.00	-2697.00	22737.60	-30,872.00	The million
Government spending	9629.70	10141.10	11137.70	7116.60	In millions EUR
Government spending in GDP	59.20	53.80	59.20	44.60	Percentage
Credit Score	5.75

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