Thursday, June 18, 2015

Eurogroup meeting without an agreement with Greece. PM convenes on … – Gazeta.pl

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– The talks between Greece and the institutions made too little progress, which means that we have an agreement – said on Thursday in Luxembourg after a meeting of finance ministers of the euro area the head of the Eurogroup Jeroen Dijsselbloem.

warned that expires the end of June assistance program for Greece may still be extended, but before must be reached agreement with Athens. – It is still possible to find agreement and the renewal of the program before the end of the month, but the ball is on the Greek side – he said.

As explained in terms of “practical point of view”. In a scenario where there would be an agreement before June 30, payment of the tranche before the end of the month would be impossible to implement. Indeed, such action must approve some of the parliaments of the euro.

Before Monday’s summit meeting of finance ministers of the euro

It is very likely that before the summit convened for Monday, “19″ comes the next meeting of euro zone finance ministers. Dijsselbloem reminded that the ministers of finance always prepare the meeting of the leaders of the euro.

Sam Tusk said in a statement stressed that the time has come for an urgent debate ws. Greece at the highest political level.

– What we can do at a meeting of the eurogroup and what leaders can do to a very large extent depends on the Greek side, the additional credible proposals, which should be presented in the coming days. Otherwise, I do not know how we could reach an agreement that will be sustainable for all parties – said the chairman of the Eurogroup.

Dijsselbloem noted that the “central scenario” is to get an agreement with Greece and keeping it within the euro area. – If this is not possible, we are prepared for other opportunities – he added.

The current meeting of the International Monetary Fund chief Christine Lagarde emphasized that institutions of Greece’s lenders presented a very reasonable proposal and are still waiting for a concrete move by the Athens.

She noted that the IMF lends money to 188 countries – the rich but also the poor – and therefore the agreement with Greece must be reliable. She assured that the Fund is flexible during negotiations with countries which borrows funds. – In each review, which we did in Greece in the last five years, we applied always flexibility. We will continue our action in such a way – she said.

need a dialogue, “as between adult men”

Lagarde expressed the hope that the authorities in Athens will use the next few days to prepare appropriate measures so that could reach an agreement. Do not mention the name of the Minister of Finance of Greece Janis Warufakisa, criticized his approach, saying that first of all need to resume dialogue, “such as between adult men.”

Warufakis spoke in turn on a separate conference that Greece needs reforms such as sealing of the tax system if the changes in the pension system, but not tax increases or benefit cuts for the poorest.

The head of the Greek Ministry of Finance announced that his country wants to turn commitments to the European Central Bank (ECB) on debt to the European Stability Mechanism (ESM), which is indirectly other euro zone countries.

Greece would get a loan with EMS to redeem bonds that are now in the books of the ECB. Warufakis indicates that the current liabilities to exclude Greece from the ECB’s asset purchase program launched by the Frankfurt bank, which is a “paradox” because this program is intended to counter deflation, and this is the deepest just in Greece. Such a move, along with a package of reforms, would, according to the Greek Minister of Finance, to end the crisis.

The head of the European Financial Stability Facility (EFSF), Klaus Regling said that the institution headed by him has to pay the last tranche of aid to Greece € 1.8 billion and an additional 10.9 billion to cover the costs of bank recapitalization. He recalled that these measures will not be available after the expiry of the aid scheme.

The current aid program for Athens ends on June 30. Greece threatens almost immediate insolvency, if not quickly receive the money, however – in the opinion of the Government of Alexis Ciprasa – if the country agreed to the conditions of the IMF, and its debt would not be restructured, in the long run would not be able to balance its finances. This month, Greece should ask the IMF approx. 1.6 billion euros, and in the summer – give 6 billion of the ECB.

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