Greece can get the money to pay off urgent commitments and rescue plan for it may be extended by 5 months. This has cost 12 billion euros. According to the document, which reached the AFP, the European -Unia creditors, the European Central Bank and the International Monetary Fund – offer Athens more support in exchange for reforms.
Greece would receive 1.8 billion on debt repayments to the IMF. Their term expires this month. The money will come from interest on Greek bonds, which are in the hands of the European Central Bank, which means in short that Greece would pay money to one creditor to another. In addition, the creditors offer Athens an extension of five months of the current aid program – to November.
In return, the Greek parliament has voted to accept an agreement with its creditors providing detailed reform and to adopt their first package.
Conversations last chance
Even on Friday, Greek Prime Minister Alexis Cipras is expected to meet with German Chancellor Angela Merkel and French President Francois Hollande on the financial rescue of Greece.
The trio is in Brussels for a European Union summit. On Thursday, euro zone finance ministers agreed not in this case. Talks on Greece is to be continued on Saturday.
The Greek finance minister said on Friday at the “absolute” commitment Athens to the euro zone. Janis Warufakis stressed aired on Irish public radio RTE that Greece has done everything she could to adapt to – as he said – “strange expectations” lenders.
At issue are, among other reforms of pensions and tax VAT.
– These tax proposals are not acceptable – said Janis Warufakis, citing the example of tourism. – If you now would have gone to one of our beautiful islands for a week vacation at the hotel, you would pay 6 percent VAT. This is a special rate for hotels and especially for the islands. If you would agree to the demands of the EU institutions, the VAT would go up to 23 percent. No way – said Janis Warufakis.
European Commissioner for. Energy ultimatum
Meanwhile, EU Commissioner for Energy Guenther Oettinger put an ultimatum to Greece. As stated – there are two options – either an agreement by the end of June, or “inevitable” Greek exit from the euro zone.
– Grexit – a Greek exit from the euro zone – it is not our aim, but it will be inevitable if we do not find a common solution within the next five days – said Oettinger.
Spain could follow in the footsteps of Greece?
Meanwhile, on the problem of possible concessions the European Union and creditors to Greece indicated on Polish Radio 24, the guest program “Pulse of the economy,” Marek Rozkrut, chief economist at EY.
– Today, the recovery in the eurozone is pulled mainly by two engines: Germany and Spain as the economy relatively high. Of course she has a lot of problems, but is rising. Parliamentary elections are approaching and movement Podemos (far left party – ed. Ed.) Would definitely benefit if the European Union and creditors went to hand Greece. He would show: behold, the Greeks fought for and got her and you to wykrwawialiście – said Marek Rozkrut.
Angela Merkel has a fairly Greece?
A firm stance Greece, presented on Thursday, Chancellor of Germany. Angela Merkel declared that EU leaders will not mix in run parallel negotiations between Greece and the Eurogroup and institutions representing creditors of Athens, namely the European Commission, International Monetary Fund and European Central Bank.
German Chancellor Angela Merkel reserved. that the agreement must be before Monday, because it would be an important signal for stock investors.
Tuesday, Greece should obtain a loan, otherwise they would not repay the next tranche of debt to the International Monetary Fund. And then you will be forced to declare insolvency.
Andrew Kiedrowicz, director of the Polish branch of Easy Forex: the biggest losses from the bankruptcy of Greece, German banks would suffer.
Source: Newseria
Greek Prime Minister attacked the IMF
Apparently Greece on Wednesday rejected proposals of financial solutions presented by its creditors. So they give out source close to the negotiations. Earlier, Prime Minister of Greece Alexis Cipras reported that the lender did not accept the Greek reform plan.
At the same time their entries on Twitter Cipras attacked the International Monetary Fund.
– Repeated refuse to accept similar plans by institutions Credit had never taken place, or in the case of Ireland or Portugal. This means that either the lenders are not interested in an agreement, or deliberately act one’s interests – Greek Prime Minister wrote on his Twitter account.
“Greek drama will continue”
The Economist Ryszard Petru, who arrived in Brussels at the invitation of Prime Minister of Belgium Charles Michel and head of the liberals in the European Parliament Guy Verhofstadt to discuss among others the situation in Greece, expressed his conviction that a possible compromise on this issue will not solve permanently the problems that face this country. – I expect that it will be rotten compromise that moves it all the time. I think that Greek drama will continue – said the leader of NowoczesnaPL. In his view, the current Greek government led by populist Prime Minister Alexis Ciprasem is not ready for deep reforms, which require creditors.
According to Ryszard Petru, Poland underestimated the seriousness of Greece. – Things are very serious. I personally believe that in Poland too little talk about this, I also fear that both the Prime Minister Ewa Kopacz, as well as the president of the Law and Justice deputy underestimate the scale of the problem when it comes to Greece – said Ryszard Petru. In his opinion, our country is not – contrary to what convinces government – prepared to economic turmoil resulting from the difficult situation in Greece. It’s about high volatility in exchange rates that ordinary citizens suffer.
Janis Warufakis, Minister of Finance of Greece by the new reform proposals:
Source: CNN Newsource / x-news
The situation of Greece’s increasingly difficult
BOS brokerage house analyst Lukasz Bugaj believes that the chances of an agreement with creditors to Greece are yet, although this will not easy. The expert stresses that the next few days should bring some resolution of the situation of Greece – or will this agreement, or insolvency of the country.
BZ WBK economist Piotr Bielski indicates that the payment of Greece’s support is needed not only a declaration of the government in Athens on increasing savings, but also the adoption of relevant laws by the local parliament.
In recent days intensified fears Greeks who pay money en masse from banks and protesting in the streets. Expert not surprised by such behavior, but expects to calm the situation, if the agreement is concluded.
ECB again to the rescue Greek banks
Meanwhile, the European Central Bank on Wednesday again increased the amount allocated for the maintenance of liquidity of Greek banks. The Greek central bank lends money to these institutions under the Emergency Liquidity Assistance, emergency support to euro area banks.
This is another such decision was taken last Monday.
The Greeks are protesting in the streets against the crisis
Source: CNN Newsource / x-news
Grexit would be detrimental to frankowiczów
Output Greece from the euro zone would be detrimental to, inter alia, to indebted in Swiss francs.
The brokerage house analyst TMS Blazej Fair explains that in case of failure of talks with creditors and possible eurozone exit by Greece, Poland would lose much currency value . The expert adds that in crisis situations investors seek safe haven capital and for years turning to these same currencies – the Swiss franc, the Japanese yen and the US dollar.
Also Postbank chief economist Monika Kurtek believes that in If the failure of the talks, the effects of the insolvency of Greece would overrule also Poles.
In this case, gold would lose its value on the stock exchange obserwowalibyśmy declines, and Polish bonds are less attractive to investors. The expert adds that it is not known just how long it would take turmoil.
Back to the drachma did not pay off either Greece
Euros in your pocket poorly, the drachma too bad. Back to the drachma might not be beneficial for the Greeks.
The brokerage house analyst TMS Blazej Fair explains that the country having its own, weak currency may be competitive exporter, but it is not enough to build a strong economy. The expert stresses that “not only exports counted in GDP.” The analyst adds that one way or another Greece will have to carry out painful reforms.
necessary agreement
The chief economist of brokerage XTB Przemysław April recalls that for several weeks Greeks end in the money. Expert explains that during the month of Greece had to repay part of the debt to the International Monetary Fund, but using the provisions in the agreement, postponed it until the end of the month. If Athens does not repay some of its IMF obligations will have to announce a Greek default.
The expert claimed that even an agreement in the coming days will not end the problems of Athens. Only economic growth, which will enable the development budget surplus, will provide peace of Greece. Money must, however, be enough to pay off both the commitment and satisfaction of spending within the country
IAR / PAP, bless
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