Εμφάνιση αναρτήσεων με ετικέτα loans. Εμφάνιση όλων των αναρτήσεων
Εμφάνιση αναρτήσεων με ετικέτα loans. Εμφάνιση όλων των αναρτήσεων

Παρασκευή, Μαρτίου 20, 2015

Greece to present new reform plan (20/3/15)

Greek Prime Minister Alexis Tsipras has agreed to accelerate a list of economic reforms in order to avoid running out of money within weeks following a three-hour meeting with the leaders of France and Germany, the president of the ECB and the head of the eurogroup of eurozone finance ministers.

Κυριακή, Φεβρουαρίου 01, 2015

Greece offers olive branch as search for allies begins

Greece sought to repair relations with its international creditors on Saturday (Jan 31) as the new anti-austerity government began a charm offensive in European capitals, even as Germany insisted it would not support any debt relief...

Just hours before Finance Minister Yanis Varoufakis headed to Paris to seek support for a renegotiation Greece's massive loans, Prime Minister Alexis Tsipras said he believed a deal could be reached with the European Union (EU) and International Monetary Fund (IMF).

"No side is seeking conflict and it has never been our intention to act unilaterally on Greek debt," Tsipras said in a statement issued to the Bloomberg news agency.

In its first meeting with creditors since it took office, the Greek government clashed with the head of the Eurozone finance ministers on Friday over its plans to rethink its rescue package and to halve Greece's debt.

Tsipras, who will himself visit Italian Prime Minister Matteo Renzi and French President Francois Hollande next week, said Greece had no intention of reneging on its commitments to the European Union and International Monetary Fund.

"My obligation to respect the clear mandate of the Greek people with respect to ending the policies of austerity and returning to a growth agenda, in no way entails that we will not fulfil our loan obligations to the ECB (European Central Bank) or the IMF," he said. "On the contrary, it means that we need time to breathe and create our own medium-term recovery programme."

This includes aiming to balance the budget - excluding debt repayments - and clamping down on tax evasion, corruption and policies which favour only a wealthy few, he said.

"I am absolutely confident that we will soon manage to reach a mutually beneficial agreement, both for Greece and for Europe as a whole," Tsipras said.

GERMANY HOLDS FIRM

Varoufakis was to leave for Paris on Saturday night with talks scheduled with French finance minister Michel Sapin and economy minister Emmanuel Macron on Sunday. Neither he nor Tsipras are intending to visit Germany, which has shouldered the bulk of Greece's loans and which strongly objects to Athens' plans.

Merkel on Saturday ruled out fresh debt relief for Greece, telling the Hamburger Abendblatt daily: "There has already been voluntary debt forgiveness by private creditors, banks have already slashed billions from Greece's debt."

"I do not envisage fresh debt cancellation," she said, as a new poll for broadcaster ZDF found 76 per cent of Germans oppose any reduction in debt.

Portuguese Prime Minister Pedro Passos Coelho also opposes any renegotiation of Greece's debt, saying it would "go against the interests of Portugal and the Portugese people".

Despite a restructuring in 2012, Greece is still lumbered with a debt pile of more than 315 billion euros, upwards of 175 per cent of gross domestic product (GDP) - an EU record.

But in its first week in power, the government scrapped the privatisation of Greece's two main ports and the state power company and announced a major raise in the minimum wage.

Varoufakis also raised the stakes by saying that Greece wanted direct access to its EU-IMF creditors and would no longer work with their widely hated fiscal audit staff team, known as the "troika".

Martin Schulz, the German head of the European Parliament, told the Frankfurter Allgemeine on Saturday that this position was "irresponsible".

GREEK BANK FEARS

Varoufakis's comments followed a strained meeting on Friday with Jeroen Dijsselbloem, who represents finance ministers from the 19-nation Eurozone. Dijsselbloem warned Athens that "taking unilateral steps or ignoring previous arrangements is not the way forward".

Greece has been promised another 7.2 billion euros (US$8.1 billion, S$10.9 billion) in funds from the EU, IMF and European Central Bank (ECB), but this is dependent on the completion of a review of reforms at the end of February.

  • Varoufakis has said his government does not want the loans, but there are concerns Greece cannot survive without them. These concerns are focused on Greece's banks, which are helping the state stay afloat by purchasing its treasury bills - and which are being supported by the ECB.
  • "If the ECB turns the tap off, it's over," Alexandre Delaigue, economics professor at the elite French military academy Saint-Cyr, told AFP.
The stunning success of Syriza in last Sunday's polls sent shockwaves through Europe and gave encouragement to other anti-austerity parties.

Tens of thousands of people, meanwhile, took to the streets of Madrid on Saturday in support of the Spanish party Podemos, which has been surging in polls ahead of elections later this year. Like Syriza, Podemos has found popular support by targeting corruption and rejecting austerity programmes aimed at lifting the countries out of deep economic crisis.

- AFP/fl

[channelnewsasia.com]
31/1/15 --1/2/15

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Τετάρτη, Ιανουαρίου 28, 2015

Greek PM Tsipras pledges radical change, markets tumble

Leftwing Greek Prime Minister Alexis Tsipras threw down an open challenge to international creditors today by halting privatisation plans agreed under the country's bailout deal, prompting a third day of heavy losses on financial markets...

A swift series of announcements signaled the newly installed government would stand by its anti-austerity pledges, setting it on course for a clash with European partners, led by Germany, which has said it will not renegotiate the aid package needed to help Greece pay its debts.

Tsipras told the first meeting of his cabinet members that they could not afford to disappoint the voters who gave them a mandate in Sunday's election, which his Syriza party won decisively.

After announcing a halt to the privatisation of the port of Piraeus yesterday, for which China's Cosco Group and four other suitors had been shortlisted, the government said on Wednesday it would block the sale of a stake in the Public Power Corporation of Greece (PPC).

It also plans to reinstate public sector employees judged to have been laid off without proper justification and announced rises in pension payments for retired people on low incomes.

Uncertainty over the new government's relations with the European Union went beyond economic policy. A day before the EU is expected to extend sanctions against Russia for six months, it was unclear if Athens would back its European partners on this move, after dissenting over a joint statement from the bloc on Ukraine yesterday.

Tsipras, who met Russia's ambassador to Athens on Monday and the Chinese envoy the next day, told ministers that the government would not seek "a mutually destructive clash" with creditors. But he warned Greece would not back down from demanding a renegotiation of debt.

"We are coming in to radically change the way that policies and administration are conducted in this country," he said.

Financial markets have taken fright. Greek bank stocks plunged more than 22 percent today, taking their cumulative losses since the election to 40 percent.

The overall Athens stock market fell almost 8 percent , while Greek five-year government bond yields hit around 13.5 percent. This marked their highest level since a 2012 restructuring which wrote off a large proportion of Greek debt held by private investors.

Newly-appointed Finance Minister Yanis Varoufakis, who meets Jeroen Dijsselbloem, head of the euro zone finance ministers' group on Friday, said negotiations would not be easy but he expected they would find common ground.

"There won't be a duel between Greece and Europe," he said, in his first meeting with reporters since taking office.

Varoufakis said he would meet the finance ministers of France and Italy - both countries which have pressed for a change of course in Europe from rigid budget orthodoxy - in the coming days.

France has ruled out straight cancellation of Greece's debt, about 80 percent of which is held by other euro zone governments and multinational organisations such as the IMF. However, Paris has said it would be open to talks on making Greece's debt burden more sustainable and Tsipras is expected to meet President Francois Hollande before an EU summit on Feb. 12.

The response from Germany was frosty. Economy Minister Sigmar Gabriel said Athens should have discussed the halt to privatisations with its partners before making an announcement.

"Citizens of other euro states have a right to see that the deals linked to their acts of solidarity are upheld," he said, adding that it would be the "wrong solution" for Greece to quit the euro but that it was up to Athens to decide.

Fears that talks between the new government and its creditors would break down, with unforeseeable consequences for Greece's future in Europe, fuelled the third successive day of f turmoil on the markets.

Tsipras said the government would pursue balanced budgets but would not seek to build up "unrealistic surpluses" to service Greece's massive public debt of more than 175 percent of gross domestic product.

Priorities would be helping the weakest sections of society, with policies to attack endemic cronyism and corruption in the economy, reduce waste and cut Greece's record unemployment.

The new government also confirmed it would stop the planned sale of state assets, in line with its election pledges.

Shares in PPC, which is 51 percent owned by the state and controls almost all of Greece's retail electricity market, were down nearly 13 percent, while Piraeus Port stock fell nearly 8 percent.

"We will halt immediately any privatisation of PPC," Energy Minister Panagiotis Lafazanis told Greek television a few hours before officially taking over his portfolio. "There will be a new PPC which will help considerably the restoration of the country's productive activities," he said.

The previous government of conservative Prime Minister Antonis Samaras passed legislation last year to spin off part of PPC to liberalise the energy market under a privatisation plan agreed under the EU/IMF bailout.

  http://www.buenosairesherald.com/article/180606/greek-pm-tsipras-pledges-radical-change-markets-tumble
28/1/15
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Πέμπτη, Μαρτίου 27, 2014

US Congress Votes to Aid Ukraine, Penalize Russia. - The same day that the IMF pledged to provide Ukraine with up to $18 billion in loans

The U.S. Congress has sent a strong message to Russia for its annexation of Crimea by passing measures that give aid to Ukraine and penalize Moscow.

Lawmakers in the House and the Senate overwhelmingly approved separate measures on Thursday.

Both bills include $1 billion in loan guarantees to Ukraine and penalize Russia for its actions in Crimea.

Lawmakers in both chambers will have to resolve differences on other provisions before sending a final bill to President Barack Obama.


Democratic Congressman Elliot Engel said if the United States continues to work with Ukraine and help turn the country "Westward," then Russian President Vladimir Putin "will have lost."

He said Putin may have a "land grab" in Crimea, but would lose the rest of Ukraine.

  • The House and Senate votes took place on the same day that the International Monetary Fund pledged to provide Ukraine with up to $18 billion in loans.

But, the IMF says Ukraine, in exchange, must agree to enact tough economic reforms.

[voanews.com]
27/3/14

Ukraine to hike gas rates by 50% for IMF loan. -The IMF programme's approval would set in motion the release of further assistance from both Washington and the European Union.

Ukraine agreed on Wednesday to quickly hike domestic gas prices by as much as 50 percent to meet a key loan condition set by the International Monetary Fund (IMF) for the crisis-hit ex-Soviet state.The new Western-backed government in Kiev is seeking $15-20 billion (11-14.5 billion euros) in IMF assistance in order to balance its books and meet a series of foreign loan repayments.An IMF team met with Prime Minister Arseniy Yatsenyuk in Kiev on Wednesday for what Ukrainian officials hoped would be a final round of talks before the package is approved in Washington next month.
The Fund has made an immediate end to Ukraine's costly gas subsidies one of its prime conditions for the programme's approval.

It also wants the central bank to stop propping up the Ukrainian currency and for the government to cut down on corruption and red tape.A top official at Ukraine's Naftogaz state energy company said Kiev was willing to raise the price households pay for natural gas by 50 per cent as of May 1.Naftogaz budget and planning director Yury Kolbushkin added that rates for district heating companies would go up by 40 per cent on July 1.Kolbushkin indicated that these prices would increase still further in the coming years."We will publish a document that sets a schedule for rate increases through 2018," Ukrainian media quoted Kolbushkin as saying.Ukraine's central bank has already limited its currency interventions -- a decision that has seen the hryvnia lose 26.4 per cent of its value against the dollar since the start of the year.
  • The IMF programme's approval would set in motion the release of further assistance from both Washington and the European Union.
Yatsenyuk said he expected EU officials to send 1.6 billion euros ($2.2 billion) to Kiev within two months of its approval.The United States has also pledged $1 billion (720 million euros) in loan guarantees while Japan has promised up to $1.5 billion (1.1 billion euros)..........http://www.ellanodikis.net/2014/03/ukraine-to-hike-gas-rates-by-50-for-imf.html
26/3/14

Τρίτη, Μαρτίου 04, 2014

Gazprom to Cancel Gas Discount for Ukraine

GORKI, March 4 (RIA Novosti) – The head of Russia’s state energy giant Gazprom said Tuesday that it will annul its discount on natural gas sales to Ukraine from April, a move that will further stretch Kiev’s teetering finances.
Alexei Miller, who made the announcement while meeting with Prime Minister Dmitry Medvedev outside Moscow, motivated the decision by pointing out that Ukraine is $1.55 billion in arrears on payments for natural gas deliveries.

“The decision that you have taken about canceling subsidies on deliveries seem, in these conditions, perfectly fair,” Medvedev said.
Ukraine’s national oil and gas company Naftogaz Ukrainy had as of February 14 paid Gazprom $1.28 billion for gas delivered last year and had asked to postpone payment of what remained until April 15.
Gazprom said in early February that Ukrainian debt for 2013 deliveries stood at $2.63 billion, meaning that Naftogaz had around $1.35 billion still to pay at the middle of the month.
Naftogaz bought around 13 billion cubic meters of gas from Russia in 2013 at the rate of $400 per thousand cubic meters.

That price was substantially reduced in December to $268.5 per thousand cubic meters.
The discount was part of a raft of support mechanisms devised by Russia for Ukraine following the latter’s decision in late November to back away from signing a deal that would have deepened political and economic relations with the European Union.
Under the arrangement between Naftogaz and Gazprom, the size of the discount was to be determined on the first day of every new quarter and formalized within 10 days. Failure to renew the discount deal by April 10 would cause it to cease having effect.
Moscow has so far paid $3 billion out of a promised $15 billion loan, which was to be issued as payment for internationally listed Ukrainian bonds.
Critics of the loan and discount package have argued that it was devised as a bribe to induce Ukraine to cement its ties with Russia, spurn the European Union and defer much-needed structural economic reforms.
The chances of the remainder of the Russian loan being provided looks slim since last month’s ouster of Ukrainian President Viktor Yanukovych, who was chased out of office at the culmination of three months-long protests initially provoked by his decision on the EU deal.
The incoming Ukrainian government confirmed by parliament last month is viewed with deep suspicion by the Kremlin, which has nonetheless vaguely committed to cooperating with the international community on providing its western neighbor with financial assistance.
Interim Prime Minister Arseny Yatsenyuk has warned of his country’s desperate financial state and that unpopular decisions would urgently need to be taken.
  • Delegations from the EU and the International Monetary Fund are visiting Ukraine this week to assess the country’s needs as it faces a wave of looming financial and security crises.
http://en.ria.ru/world/20140304/188083296/Gazprom-to-Cancel-Gas-Discount-for-Ukraine.html
4/3/14
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Τρίτη, Δεκεμβρίου 17, 2013

Russia temporarily cuts gas price by one third to help Ukraine

Russia will provide gas to Ukraine at a price of $ 268.5 dollars per thousand cubic meters which is lower by one third of the previous price which was $ 400 per thousand cubic meters, said Russian President Vladimir Putin on Tuesday after a meeting of the Russian- Ukrainian Interstate Commission.

The agreement was signed between Russia’s "Gazprom" and "Natftogaz Ukraine" in the presence of President Putin and President of Ukraine Viktor Yanukovych.


Putin said that Russia has been providing Ukraine with heavy discounts on gas, which has helped Kiev to save more than $ 10 billion. He further added that Russia seeks to "move on from constant discussions on price to a pragmatic cooperation - both on gas supplies to Ukraine, and reliable transit to European consumers."

Putin also added that the Russian government has decided to keep a part of its National Welfare Fund worth $ 15 billion as bonds with Ukraine to help the economy of the country.

Following the meeting, the Commission signed a number of bilateral agreements on cooperation in aviation, infrastructure, security, shipbuilding, drug control, prevention of industrial accidents, disaster management and aerospace industry.
http://indian.ruvr.ru/news/2013_12_17/Russia-cuts-gas-price-Ukraine/

17/12/13
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Τρίτη, Δεκεμβρίου 03, 2013

Deputy Prime Minister and Foreign Minister Venizelos: We want substantial, not just rhetorical, acknowledgement of the sacrifices and great achievements of the Greek people.

JOURNALIST: What stance will you maintain with the troika from here on in?
E. VENIZELOS: On the margins of today’s Meeting of NATO Foreign Ministers, and ahead of tomorrow’s meeting between the Greek government and the College of EU Commissioners, I am having a series of meetings in which my message – Greece’s message, the message of the Greek people and our government – is very, very clear: We want substantial, not just rhetorical, acknowledgement of the sacrifices and great achievements of the Greek people.

We want all of our international partners to understand what the market has understood on the international level – what the international private sector has understood: that Greece has changed, that Greece is exiting the crisis and no one can hinder us now that we are covering the last few meters to the end of this tragically difficult time, which would have been much more difficult – much, much worse – if we hadn’t made this responsible but, naturally, extremely arduous choice, for the good of the nation, the homeland, and the economy.

So we are therefore prepared for all the structural changes; we are ready to implement the measures that have been legislated. But, no – the Greek people cannot bear additional burdens. No, we cannot withdraw protection for vulnerable social groups, like, for example, protection for the first home of poor and middle-income households.
JOURNALIST:
You said this morning that, regardless of the negotiations, we have met the requirements to get the next instalment.

E. VENIZELOS
: This is a technical matter that concerns the flow of payments for the servicing of the public debt and the loan. And this is another message we are giving to all our partners and all the countries – particularly the eurozone countries: Yes, the eurozone and the ESM and the IMF have given us loans. Yes, the loan we took was very large – €250 billion – but it is being serviced in full. No country or international organization that has lent us money has been at any risk.

And if everything goes smoothly – and everything will go smoothly, thanks to the hard work, sacrifices and pressures taken on by the Greek people – no one will lose. Everyone will win. Greece will win, naturally, as it turns a new page, but the eurozone as a whole will also win. That is why any other approach, portraying Greece as having taken loans that it isn’t going to repay, is derisive and unfair – it is not the case. We are proud as a nation, trustworthy as partners. We went through a very difficult time, but now we have to cross the finish line.
mfa.gr, 3/12/13

Δευτέρα, Μαρτίου 25, 2013

ΜΕ ΕΝΤΟΛΗ ΠΟΥΤΙΝ.....Πράσινο φως από Μόσχα για ρύθμιση του κυπριακού δανείου....

Εντολή στην κυβέρνησή του να διαπραγματευθεί την αναδιάρθρωση του ρωσικού δανείου προς την Κύπρο έδωσε ο Βλαντιμίρ Πούτιν, όπως ανακοίνωσε ο εκπρόσωπός του Ντμίτρι Πεσκόφ.

Η ανακοίνωση σηματοδοτεί ουσιαστικά την υποστήριξη της Μόσχας στη συμφωνία Κύπρου - Eurogroup.

Η Κύπρος έχει ζητήσει την παράταση του υφισταμένου δανείου των 2,5 δισεκατομμυρίων ευρώ και μείωση του επιτοκίου του από 4,5% στο 2,5%.



Οι συζητήσεις μεταξύ των δύο πλευρών την περασμένη εβδομάδα είχαν αποτύχει να καταλήξουν σε συμφωνία.

Ο Πούτιν «ανέθεσε στην κυβέρνηση και στο υπουργείο Οικονομικών να επεξεργαστούν με τους εταίρους μας τους όρους μιας αναδιάρθρωσης της πίστωσης που έχει ήδη χορηγηθεί στην Κύπρο», δήλωσε ο Πέσκοφ, τον οποίο επικαλούνται τα ρωσικά πρακτορεία.

http://www.ethnos.gr/article.asp?catid=22769&subid=2&pubid=63802188
25/3/13

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15:23
PESKOV: PUTIN HAS ORDERED GOVT, FINANCE MINISTRY TO WORK WITH CYPRUS PARTNERS ON CONDITIONS FOR RESTRUCTURING LOAN PROVIDED EARLIER

15:33
Putin orders work on restructuring loan provided by Russia to Cyprus - Peskov

http://www.interfax.com/news.asp
25/3/13

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  • Путин поручил правительству проработать вопрос о реструктуризации кредита Кипру в 2,5 млрд долларов....

НОВО-ОГАРЕВО, 25 марта. /Корр.ИТАР-ТАСС Вероника Романенкова/. 


Президент России Владимир Путин поручил "правительству и Министерству финансов РФ проработать с партнерами вопросы реструктуризации ранее предоставленных Кипру кредитов". Об этом журналистам сообщил пресс- секретарь главы государства Дмитрий Песков.

"С учетом решений, принятых еврогруппой, Путин считает возможным поддержать усилия президента Кипра, а также Еврокомиссии, направленные на преодоление кризиса в экономике и банковской системе этого островного государства", - отметил Песков. По его словам, этими соображениями и вызвано данное поручение.

Ранее РФ предоставила Кипру кредит в 2,5 млрд долларов.

http://www.itar-tass.com/c1/686332.html
25/3/13 

Τετάρτη, Μαρτίου 20, 2013

Η Ρωσία και η Κύπρος προς το παρόν δεν μπόρεσαν να συμφωνήσουν για το δάνειο......

Οι υπουργοί Οικονομικών της Ρωσίας και της Κυπριακής Δημοκρατίας δεν κατέληξαν σε οριστική απόφαση για το πρόβλημα του χρέους του νησιώτικου κράτους και οι διαπραγματεύσεις θα συνεχιστούν σε άλλο μέρος, δήλωσε ο υπουργός Οικονομικών της Κύπρου Μιχάλης Σαρρής, που ηγείται της αντιπροσωπείας της χώρας του κατά τη διάρκεια της επίσκεψής του στη Ρωσική Ομοσπονδία.

Η Βουλή των Αντιπροσώπων της Κυπριακής Δημοκρατίας την Τρίτη απέρριψε το νομοσχέδιο για το αναγκαστικό κούρεμα ενός μέρους των τραπεζικών καταθέσεων με τη μορφή «φόρου».

Οι Αρχές της Κύπρου την Τετάρτη διεξάγουν συνομιλίες με τους εκπροσώπους της Ευρωπαϊκής Ένωσης και της Ρωσίας, προσπαθώντας να σώσουν τη χώρα από τη χρεοκοπία.

.greek.ruvr.ru
20/3/13

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  • Russia, Cyprus fail to agree on bailout....

Russian and Cypriot finance chiefs have failed to reach a common ground on the island nation’s bailout at their Moscow meeting, saying the loan talks will continue elsewhere.

Cypriot finance minister Michael Sarris, who led the country’s delegation, said the 1.5-hour negotiations were “fruitful and constructive.”

According to media reports, the Cypriot asked for another loan several billion euros worth in addition to extending the 2.5-billion credit.

In return, Cyprus offered Russia a fair share in its bank and energy assets.
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Τετάρτη, Δεκεμβρίου 26, 2012

Ukraine to Get $3.7 Bln Loan From China

KIEV, December 26 (RIA Novosti) – Ukraine’s national energy company Naftogaz will receive a $3.7 billion loan from China to finance a program to substitute gas with coal, the Ukrainian government’s press office said on Wednesday.
“On December 25, 2012, a loan agreement between Natfogaz and State Development Bank of China on financing the program of natural gas substitution with Ukrainian coal worth a total of $3.656 billion against the Ukrainian government’s guarantees was signed in the Ukrainian Cabinet of Ministers in the presence of Deputy Prime Minister Yuriy Boyko,” the statement said.

The program envisages measures to introduce coal-water fuel technology to domestic heat and power plants, and to build coal-to-gas conversion facilities allowing Ukraine, which is heavily dependent on costly Russian gas imports, to substitute about 4 billion cubic meters of gas with coal. This would save the country $1.5 billion a year on average, the statement said.
Ukraine imports about two-thirds of the gas it consumes from Russia under a 2009 deal that ties the gas price to oil prices, which have risen strongly since 2009, boosting Ukraine's gas bill.
Naftogaz imported Russian gas at $416 per 1,000 cubic meters in the first quarter of this year, at around $425 in the second quarter, at $426 in the third quarter and will have to pay around $432 in the fourth quarter.
Ukraine has long sought to alter the terms of the gas deal it signed with Russia in 2009, insisting on both price and volume cuts, but these attempts have failed to deliver the result desired, prompting the ex-Soviet republic to seek alternative gas supply options to cut its huge energy bill.
.en.rian.ru 
26/12/12

Κυριακή, Δεκεμβρίου 23, 2012

Mere cash injection may not be enough


By Dimitris Kontogiannis
The Greek government has invested a lot in the long-awaited bailout tranches to cope with the developing credit crunch and bring the economy to the stabilization phase late next year. However, a closer look at the figures indicates the positive impact may be less than hoped for, and therefore the risk of disappointment on the back of fostering high expectations should not be ignored or underestimated.

After much deliberation, the group of eurozone finance ministers decided to disburse 34.3 billion euros in bailout funds to Greece earlier this month and authorize the disbursement of two more tranches in the next few months. Greece is to receive a total of about 49 billion euros by the end of March 2013 and an additional amount of 3.4 billion euros from the IMF, bringing the entire amount to 52.5 billion euros, assuming the country complies with the terms of the new bailout agreement. The sum of 11.3 billion euros in the form of European Financial Stability Facility securities has already been used to pay for the debt buyback.
In addition, new initiatives were agreed to slash the projected debt-to-GDP ratio to 124 percent in 2020 from an estimated 144 percent, including debt relief of 21 billion euros via the recently completed debt buyback and interest rate cuts on bilateral EU loans in exchange for more policy commitments from the Greek side. The new initiatives support the case for a more sustainable public debt in the long haul but the majority of analysts and others strongly doubt they will suffice to convince the markets to start lending to Greece again.
Nevertheless, it is commonly accepted the adjustment program will slide off track again if the economy underperforms and the recession turns out to be much deeper than the officially projected 4.5 percent next year. Government officials have pinned a good deal of hope on the EU and IMF bailout funds to avert such an undesirable outcome. Much centers on the repayment of long- overdue bills to domestic creditors, including pharmaceutical companies, exporters and others, and the recapitalization of the systemically important Greek banks to restore the flow of credit to the economy.
Although no one doubts the positive impact of the bailout money on the economy, many analysts, bankers and others are cautious and less optimistic than officials. According to them, the real flow to the economy will in fact be the 7-8 billion euros earmarked for domestic arrears. Still, a few of them argue the actual flow will be smaller, since they expect some companies and individuals to hoard cash after repaying bank loans and their own overdue bills to the state, suppliers and employees. Unfortunately, this is the feeling one gets when talking to some company executives who admit new investments are not in their business plans for next year, citing the lack of visibility, suppressed consumption and insufficient bank funding.
Government officials and others reckon bank credit to the economy will be gradually restored following the recapitalization of important local banks, facilitating the realization of private investments put on hold. Greek banks are going to receive some 23 billion euros in the form of EFSF bonds out of the total 49 billion from EU funds by the end of January 2013 for the recapitalization and resolution process, with 16 billion euros allocated in the EU bailout tranche of 34.3 billion. This amount is additional to the sum of 25 billion euros in bridge capital already injected earlier this year.
The numbers may look big and promising but the credit inflows could turn out to be much smaller for two reasons. First, there should be strong demand for loans by healthy companies. However, it is not clear whether financially sound firms are willing to borrow much more than for refinancing existing loans. On the contrary, there seems to be a lot of demand by problematic companies and individuals but these are not the type of borrowers recapitalized banks want to lend to.
Second, and perhaps more important, banks will likely continue to face liquidity constraints after the recapitalization process is complete unless deposits grow fast. Government officials and some bankers hope some deposits will return, betting on increased confidence in the banking system by the public, following the large capital injections. But this remains to be seen, bearing in mind the protracted recession.
The major constraint preventing local banks from extending a lot of credit to the economy remains their dependence on Eurosystem funding to the tune of 125-130 billion euros. Their capacity would have been enhanced by a few billion euros if the stock of Greek treasury bills held by banks was reduced. Yet the state has no plan to do so and the stock is expected to remain unchanged at around 18 billion euros according to one official. Moreover, the European Central Bank is unlikely to agree to a rise in the Eurosystem’s exposure to the Greek banking system by increasing the overall limit, while some analysts even expect the ECB to seek a smaller exposure at some point. On the other hand, a number of top bankers expect local credit institutions to gradually regain access to money markets after the recapitalization. If this turns out to be true, it could help reduce the banks’ dependence on Eurosystem funding and/or boost credit to the economy.
All in all, the huge bailout funds should have a positive effect on the Greek economy, partly tackling the credit crunch. However, the impact may be smaller than officials hope for as actual credit flows may disappoint on cash hoarding and banks’ continuing large dependence on Eurosystem liquidity. It will take a sizable return of deposits in the face of a deep recession and banks’ obtaining access to money markets after recapitalization to prove the optimists right. Therefore, the risk of disappointment on the heels of rising expectations should be taken into account.
.ekathimerini.com
23/12/12
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Leading Greek banks in the doldrums and need over $17bn to recapitalize

Σάββατο, Δεκεμβρίου 22, 2012

Leading Greek banks in the doldrums and need over $17bn to recapitalize

The two largest banks in crisis-stricken Greece need a total of €13bn ($17.2bn) to recapitalize, as they took huge losses in the country’s debt restructuring.
Greece’s second largest bank by assets, Eurobank, needs €5.8bn, with the fourth largest lender Piraeus Bank being short of €7.3bn, according to the Wall Street Journal. In the first 9 months of the year the two banks reported combined losses of €1.7bn, with a huge part of that due the banks’ participation in the country’s debt restructuring programme.
The four biggest banks in Greece were left technically insolvent, after they joined the €200bn debt restructuring programme. It left them dependent on extremely expensive loans from euro zone member states and the International Monetary Fund.

In the framework of Greece’s second bailout package the country reserved about €50bn to recapitalize its troubled banks. €18bn of that was provided to lenders in May through bonds issued by the European Financial Stability Facility (EFSF) – Europe's temporary bailout fund.
Bridge financing will be another way to support Greek banks until they complete a formal recapitalization early next year. The Greek bank rescue fund will act as an underwriter as the lenders boost capital and are set to take up about 90% of the new stock issued. This would practically mean nationalization of Greece’s banking system.
Bridge financing is a way of financing, aimed at maintaining liquidity while waiting for an anticipated and reasonably expected inflow of cash.
There have also been bank mergers in Greece to make them more efficient and attractive to potential investors. Among the most recent cases are Eurobank that’s set to team up with National Bank of Greece.Alpha Bank SA also said it would acquire the Greek unit of French lenders Crédit Agricole, with Piraeus Bank saying it’ll acquire the local unit of Société Générale. Piraeus has also acquired the healthy assets of state-owned farm lender ATE Bank.
 http://rt.com
21/12/12

Οι νεκροί Έλληνες στα μακεδονικά χώματα σάς κοιτούν με οργή

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