Negotiations with creditors come to an end; “From midnight (on Sunday) parties to the negotiations have entered the final straight” – said on Monday the Ministry of Finance of Greece. Hi lenders does not share the view that the talks come to an end.
On Monday at dawn parties to the negotiations, “swept, word by word, the final text of the agreement” – informed the Greek Ministry of Finance.
Binding arrangements must be adopted before August 20, when Athens has to repay another installment of the European Central Bank.
The representatives of Greece announced in recent days that count on the fact that August 14 agreement will be approved by the Eurogroup, and August 18, the Greek parliament will approve them .
The need for specific contract
Berlin held on Monday, however, that the more important the timely signing of the agreement is to enter into such an agreement with Greece, which “will be exhaustive”.
– The swift conclusion of the negotiations would be the most desirable, but we should not forget that the aim of the scheme (aid) for three years. Therefore, it is particularly important that the exhaustive nature of the contract considered as important on the date of its signing – said a spokesman for Chancellor Angela Merkel, Steffen Seibert.
The German finance ministry also demands that the size of the first tranche of the bailout loan for Greece (the so-called . bailout) was dependent on progress achieved in implementing the Athens demanded by creditors economic reforms.
Markets react positively to the imminent end of the conversation
Despite all markets Capital responded positively to the prospect of an agreement on another bailout for Greece, European FTSEurofirst 300 index rose on Monday morning by 0.3 per cent., and the major indexes in Paris and Frankfurt by 0.5 percent.
However, despite the “extremely good cooperation with the Greek side” – as he put it high-ranking EU policies – are still significant objections to parts of the euro area countries that recognize the scale bailout too large and demanding depletion of aid funds for Greece – a Reuters correspondent said.
For the Greeks, meanwhile pressing problem becomes necessary to save the banks, which stood on the precipice because of the rapidly increasing number of toxic loans. In the first quarter of this year, they accounted for 35 percent. the total amount of loans granted by Greek banks.
Increase the number of bad loans
Moreover, the number of bad loans is likely to increase, which is a natural consequence of the Greeks to impose flow control capital – they had to stop a run on banks; However, the freezing of the economy, which is caused increases the number of individuals and companies which cease to repay loans – wrote over the weekend, “The Washington Post”.
The first tranche of aid package for Greece, which may total about 20 billion, is therefore urgently awaited in Athens; immediate needs of banks are calculated at 10 billion euros. The banking sector needs to be recapitalised immediately – writes “HR” in the article Fri. “Greek banks are falling, and quickly.”
Banks may pull Greece to the bottom
“Greece found that the economy can not exist without banks, but banks can not exist without a functional economy. “Despite all agreements with creditors country might collapse because the banking crisis – says the Washington daily. – The biggest consolation is that state ownership of banks can not fall below zero – he added.
The talks in Athens with creditors also makes it difficult is that part of the party of Prime Minister Alexis Ciprasa, Syrizy, does not give him a mandate for further negotiations.
At the same time more and more real it becomes a scenario disintegration of the Greek government
Part Syrizy leaders, among them the leader of the Platform of the Left, the radical wing of the party Panayiotakis Lafazanis, demands the immediate conduct of the congress, which would be decided whether the government should continue negotiations with creditors, which the radical wing of the party strongly opposes.
Cipras consistently stresses, however, that the absolute priority is to sign an agreement with creditors.
– In Greece, whose economy is experiencing a state of war, Cipras is the guarantor of stability – He wrote “WP”. Premier is increasingly popular support in recent polls, it increased to 60 percent. – Part of his success is a skilful move from the position of the radical left in the political center – comments the daily.
PAP, fko
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