"Ό,τι η ψυχή επιθυμεί, αυτό και πιστεύει." Δημοσθένης (Whatever the soul wishes, thats what it believes, Demosthenes)
Showing posts with label Debt crisis. Show all posts
Showing posts with label Debt crisis. Show all posts
Monday, October 3, 2016
To fix Greece, get your figures straight
10/01/2016 12:29 pm ET
The Huffington Post
Michael G. Jacobides
Sir Donald Gordon Chair of Entrepreneurship and Innovation, London Business School
Greece has been making headlines again - and for all the wrong reasons. Egged on by government propaganda, the judicial system has allowed a rather grotesque case to be made against Mr Andreas Georgiou, former president of the Hellenic Statistical Authority (ELSTAT). His alleged crime was using applicable international rules to report the Greek government’s budget deficit, which had the effect of increasing it by just under 3% to a whopping 15% of GDP. Confusing cause and effect, some hot-headed Greek prosecutors claim that Georgiou’s un-sugarcoated report caused financial and social damage, leading to the EU/IMF Memorandum. Several commentators have already pointed out that shooting the messenger is a spineless, head-in-the-sand attitude. Now we have to accept that only accurate, internationally comparable figures can begin to save Greece from its financial woes.
Labels:
Debt crisis,
Greek Crisis,
SYRIZA,
Third Memorandum,
Troika
Thursday, May 26, 2016
Greece’s Inconclusive Debt Deal
Tuesday’s accord, rather being than a decisive break in Athens’ crisis, puts off thorny political decisions
The Wall Street Journal
By SIMON NIXON
May 25, 2016 5:12 p.m. ET
1 COMMENTS
Greece has a new debt deal—but then it was always going to get a new debt deal.
Time and again, the eurozone has demonstrated that it is bound together by impressive reservoirs of political will: not only the will of debtors such as the Greeks, for whom the euro is both a trusted store of value and a symbol of their common European destiny, but also the will of creditors, who have been unwilling to risk the great costs and inevitable political upheavals of a eurozone breakup. Indeed, the determination to reach a deal was even greater at a time the breakup of the European Union itself is on the table in the U.K.’s Brexit referendum.
The Wall Street Journal
By SIMON NIXON
May 25, 2016 5:12 p.m. ET
1 COMMENTS
Greece has a new debt deal—but then it was always going to get a new debt deal.
Time and again, the eurozone has demonstrated that it is bound together by impressive reservoirs of political will: not only the will of debtors such as the Greeks, for whom the euro is both a trusted store of value and a symbol of their common European destiny, but also the will of creditors, who have been unwilling to risk the great costs and inevitable political upheavals of a eurozone breakup. Indeed, the determination to reach a deal was even greater at a time the breakup of the European Union itself is on the table in the U.K.’s Brexit referendum.
Labels:
Debt crisis,
Greek Crisis,
IMF,
SYRIZA,
Third Memorandum
Wednesday, May 25, 2016
Global stocks climb as Brexit, Grexit risks ease
Wed May 25, 2016 5:26am EDT
LONDON | BY PATRICK GRAHAM
Reuters
Easing concerns over several major global risks helped stock markets rise robustly for a second day on Wednesday, underpinned by gains in oil and metals prices and data showing the U.S. economy can deal with a hike in interest rates.
Traders say several polls showing Britain will vote strongly to stay in the European Union in a referendum in June have done more than just support sterling, up 5 percent in trade-weighted terms from lows hit in April.
A new debt deal for Greece also looked to have headed off the risk of another round of uncertainty over its finances and even its future in the euro zone after a funding crisis a year ago, pushing European stock markets higher across the board.
LONDON | BY PATRICK GRAHAM
Reuters
Easing concerns over several major global risks helped stock markets rise robustly for a second day on Wednesday, underpinned by gains in oil and metals prices and data showing the U.S. economy can deal with a hike in interest rates.
Traders say several polls showing Britain will vote strongly to stay in the European Union in a referendum in June have done more than just support sterling, up 5 percent in trade-weighted terms from lows hit in April.
A new debt deal for Greece also looked to have headed off the risk of another round of uncertainty over its finances and even its future in the euro zone after a funding crisis a year ago, pushing European stock markets higher across the board.
Labels:
Debt crisis,
Greek Crisis,
Grexit,
SYRIZA,
Third Memorandum
Tuesday, May 24, 2016
Greece Needs Debt Relief More Than Ever
COMMENTARY by Remy Davison
MAY 24, 2016, 1:00 AM
Fortune
It would be short-sighted to challenge aid.
As Eurozone finance ministers on Tuesday prepare to gather for a meeting to discuss Greece’s bailout, some officials are once again holding out on approving much needed funds to help the financially-troubled country pay off its debts. Regardless of their reasons, the idea of limiting aid to Greece is different today and shouldn’t even be an issue, given how increasingly vulnerable Europe’s economy has become.
Labels:
Debt crisis,
Greek Crisis,
SYRIZA,
Third Memorandum
Monday, May 23, 2016
Greece bailout: MPs approve new cuts to unblock bailout funds
22 May 2016
BBC
The Greek parliament has passed new budget cuts and tax rises two days before a eurozone meeting expected to unblock much-needed bailout funds.
The government led by the leftist Syriza coalition passed the widely unpopular bill by 153 votes to 145.
Greece agreed to a third bailout worth €86bn (£67bn; $96bn) last year.
Demonstrators gathered outside parliament on Sunday to protest against the new legislation. Eurozone finance ministers meet in Brussels on Tuesday.
22 May 2016
BBC
The Greek parliament has passed new budget cuts and tax rises two days before a eurozone meeting expected to unblock much-needed bailout funds.
The government led by the leftist Syriza coalition passed the widely unpopular bill by 153 votes to 145.
Greece agreed to a third bailout worth €86bn (£67bn; $96bn) last year.
Demonstrators gathered outside parliament on Sunday to protest against the new legislation. Eurozone finance ministers meet in Brussels on Tuesday.
Thursday, May 19, 2016
Now or later? Euro zone, IMF at odds over when Greece should get debt relief
Thu May 19, 2016 6:50am EDT Related: GREECE
BRUSSELS | BY JAN STRUPCZEWSKI
Reuters
The euro zone and International Monetary are struggling with Greece's debt crisis - not with Athens this time, but with each other over when to give Greece a break on its future massive debt repayments.
The euro zone has begun talks on debt relief for Greece but wants to postpone the final decision until 2018; the IMF insists Greek debt repayment is unsustainable and investors need clarity now.
Euro zone finance ministers are likely to forge a tentative plan when they meet next Tuesday - what in Brussels-speak is known as a political agreement. But their offer is unlikely to be anything but highly conditional, euro zone officials preparing the talks said.
BRUSSELS | BY JAN STRUPCZEWSKI
Reuters
The euro zone and International Monetary are struggling with Greece's debt crisis - not with Athens this time, but with each other over when to give Greece a break on its future massive debt repayments.
The euro zone has begun talks on debt relief for Greece but wants to postpone the final decision until 2018; the IMF insists Greek debt repayment is unsustainable and investors need clarity now.
Euro zone finance ministers are likely to forge a tentative plan when they meet next Tuesday - what in Brussels-speak is known as a political agreement. But their offer is unlikely to be anything but highly conditional, euro zone officials preparing the talks said.
Tuesday, May 17, 2016
IMF Wants Eurozone Debt Relief for Greece Until 2040
Interest rate on eurozone loans would be fixed for 30 to 40 years, say people familiar with IMF proposal
By MARCUS WALKER
Updated May 17, 2016 3:28 a.m. ET
3 COMMENTS
BERLIN—The International Monetary Fund is pressing the eurozone to let Greece skip paying interest or principal on bailout loans until 2040, say officials familiar with the talks.
The IMF wants the loans to Greece to fall due gradually in the following decades, and as late as 2080, according to the IMF’s proposal.
Greece’s interest rate on eurozone loans would be fixed for 30 to 40 years at its current average level of 1.5%, with all interest payments postponed until loans start falling due, under the IMF proposal.
By MARCUS WALKER
Updated May 17, 2016 3:28 a.m. ET
3 COMMENTS
BERLIN—The International Monetary Fund is pressing the eurozone to let Greece skip paying interest or principal on bailout loans until 2040, say officials familiar with the talks.
The IMF wants the loans to Greece to fall due gradually in the following decades, and as late as 2080, according to the IMF’s proposal.
Greece’s interest rate on eurozone loans would be fixed for 30 to 40 years at its current average level of 1.5%, with all interest payments postponed until loans start falling due, under the IMF proposal.
Thursday, May 12, 2016
Why Greece Still Needs Debt Relief
FORTUNE
COMMENTARY by Barry Eichengreen @b_eichengreen MAY 11, 2016, 3:29 PM EDT
The Greek debt crisis is the crisis that never stops giving. More than six years have now passed since the crisis broke, and the country is still struggling to get its finances under control. In the latest installment, Greek lawmakers agreed early Monday morning to a new set of pension and tax reforms.
Unfortunately, the new package will not be enough, by itself, to prevent the crisis from blowing up again. Its higher marginal tax rates for top earners, lower tax-free thresholds, and additional pension cuts are designed to reduce the budget deficit by 1.5% to 3% of GDP. This is an expression of good faith intended to reassure German finance minister Wolfgang Schauble and his constituents.
Saturday, March 5, 2016
Migrant Crisis Alters E.U. Calculations for Greece as Its Debt Struggle Continues
By LIZ ALDERMANMARCH 4, 2016
The New York Times
ATHENS — When Greece’s debt crisis threatened to sink the European Union’s single currency last summer, the rest of Europe, led by Chancellor Angela Merkel of Germany, ganged up to deliver the Greek government a stern message: Overcome your domestic political problems and do what is necessary to hold the Continent together.
Eight months after Greece agreed to do its part, it is the rest of Europe that is failing to muster the will to address a threat to the bloc’s unity, this time the continued influx of migrants from the Middle East and beyond. And Greece, the main entry route for asylum seekers, has been largely left to fend for itself.
“We are now in the situation where Greece is essentially becoming a holding pen for refugees and is being asked to solve a problem created by other countries,” said Jens Bastian, an economics consultant based in Athens and a former member of the European Commission’s task force on Greece. “You are basically putting the management of Europe’s migrant crisis at the doorstep of Greece.”
The New York Times
ATHENS — When Greece’s debt crisis threatened to sink the European Union’s single currency last summer, the rest of Europe, led by Chancellor Angela Merkel of Germany, ganged up to deliver the Greek government a stern message: Overcome your domestic political problems and do what is necessary to hold the Continent together.
Eight months after Greece agreed to do its part, it is the rest of Europe that is failing to muster the will to address a threat to the bloc’s unity, this time the continued influx of migrants from the Middle East and beyond. And Greece, the main entry route for asylum seekers, has been largely left to fend for itself.
“We are now in the situation where Greece is essentially becoming a holding pen for refugees and is being asked to solve a problem created by other countries,” said Jens Bastian, an economics consultant based in Athens and a former member of the European Commission’s task force on Greece. “You are basically putting the management of Europe’s migrant crisis at the doorstep of Greece.”
Labels:
Debt crisis,
Grexit,
Refugees,
SYRIZA,
Troika,
Write Down
Saturday, February 20, 2016
These 5 Facts Explain Why Turkey Is in Deep Trouble
Ian Bremmer @ianbremmer Feb. 19, 2016
TIME
As Turkey ramps up its involvement in the war in Syria, it risks being hit by serious international blowback
It’s been a bad week for Turkey. As the country intensifies its military campaign in Syria, a bomb ripped through Ankara in apparent retaliation on Feb. 17, killing 28 people and injuring 61 others. Sadly, it’s an all too familiar sight. These five facts explain the mounting threats Turkey faces from Syria’s war next door.
TIME
As Turkey ramps up its involvement in the war in Syria, it risks being hit by serious international blowback
It’s been a bad week for Turkey. As the country intensifies its military campaign in Syria, a bomb ripped through Ankara in apparent retaliation on Feb. 17, killing 28 people and injuring 61 others. Sadly, it’s an all too familiar sight. These five facts explain the mounting threats Turkey faces from Syria’s war next door.
Labels:
Debt crisis,
Geopolitics,
Kurdistan,
Refugees,
Turkey
Sunday, January 17, 2016
Next Up for Greece: How to Shrink the Debt
Political
talks to begin after first bailout review is done
The Wall
Street Journal
By VIKTORIA
DENDRINOU
Jan. 14,
2016 1:44 p.m. ET
Thursday, December 10, 2015
What China Can Learn From Greece
By SERGEI GURIEVDEC. 9, 2015
The
New York Times
As a
political economist, I make my living studying the impact of politics on
economics. My friends and co-authors who are political scientists focus on how
economics affects politics. Which is more relevant in real life? Do countries
with bad politics suffer from poor economic outcomes because bad economic
policies are driven by bad politics? Or because persistent economic
difficulties make reasonable politics hard to sustain?
Every year
offers examples of both kinds. The year 2015 was no exception, producing two
very important stories: Greece
and China .
Both are dramatic and multifaceted.
Tuesday, December 1, 2015
Greece aims for debt relief deal in Feb 2016 after reforms done
Mon Nov 30,
2015 12:11pm EST
Reuters
Addressing
a conference of investors, Finance Minister Euclid Tsakalotos said on Monday
that making the ailing euro zone country's debt sustainable was the key to
liberating the economy and restoring confidence among depositors and companies.
Labels:
Debt crisis,
Grexit,
Structural Reforms,
SYRIZA,
Third Memorandum,
Write Down
Monday, November 23, 2015
A disagreement in Europe
The euro
crisis was not a government-debt crisis
Nov 23rd
2015, 9:43 BY R.A. | LONDON
The
Economist
THE
euro-zone crisis has transitioned from an acute phase to a chronic one. At just
this moment the fear that market panic might force one or several economies out
of the single currency is low. Yet few analysts believe the euro zone has
solved its fundamental problems. In a piece published at Vox EU last week, a
cadre of prominent economists made the very sensible point that unless
euro-area leaders can agree on the fundamental causes of the crisis, they will
struggle to craft long-run fixes. The authors set out their view of the crisis,
in hopes that it will prove a foundation for consensus building.
Monday, November 9, 2015
Eurozone Finance Ministers Won’t Release $2.15 billion Loan to Greece
Disagreements
over new foreclosure rules continue, two European officials say
The Wall
Street Journal
By GABRIELE
STEINHAUSER and VIKTORIA DENDRINOU
Updated
Nov. 9, 2015 4:05 a.m. ET
Senior
officials from the currency union’s finance ministries were updated on Greece ’s
implementation of around 50 promised overhauls, known as milestones, during a
conference call Sunday afternoon. While progress has been made on some
issues—including measures to substitute a tax on private education, the
governance of the country’s bailed-out banks and the treatment of overdue
loans—Athens
and its creditors will need more time to sign off on all overhauls, the
officials said.
Wednesday, October 14, 2015
The Hidden Debt Burden of Emerging Markets
OCT 9, 2015
8
Carmen
Reinhart
Carmen
Reinhart is Professor of the International Financial System at Harvard University's
Kennedy School of Government.
LIMA – As
central bankers and finance ministers from around the globe gather for the
International Monetary Fund’s annual meetings here in Peru, the emerging world
is rife with symptoms of increasing economic vulnerability. Gone are the days
when IMF meetings were monopolized by the problems of the advanced economies
struggling to recover from the 2008 financial crisis. Now, the discussion has
shifted back toward emerging economies, which face the risk of financial crises
of their own.
Tuesday, October 13, 2015
EU to Assess Greek Debt Burden, Servicing Costs After Review
Rebecca Christie
Bloomberg
The
European Commission said it will assess Greece ’s debt burden and servicing
costs once Prime Minister Alexis Tsipras shows his nation will meet the commitments
under its new bailout program.
For debt
relief talks to proceed, Greece
needs to implement the reforms it has already passed, enact further required
measures and pass its first program review, European Union Economic Affairs
Commissioner Pierre Moscovici told reporters Monday in Brussels . At that point, he said, authorities
can review “under what conditions the Greek debt will be sustainable” and how
to “reduce the servicing of the debt.”
Tuesday, September 15, 2015
Once Unthinkable, Economists Now Say Debt Relief for Greece Is a Given
A new
Bloomberg survey shows a sea-change in how economists view Greece
Bloomberg
By Andre
Tartar
September
15, 2015 — 9:51 AM EEST
What a
difference two months make.
Back in
July, things looked so bad for Greece
that 71 percent of 31 economists polled by Bloomberg could see the country out
of the euro by the end of 2016. Debt relief was a pipe dream for the EU's most
indebted nation.
Fast
forward to September, a similar survey shows that 94 percent of respondents
think it's not only possible, but very likely. The sample of 36 economists was
interviewed Sept. 4-11.
Tuesday, July 21, 2015
Greece's Debt May Not Be So Daunting
11 JUL 20,
2015 3:13 PM EDT
By Leonid
Bershidsky
Bloomberg
The
assertion comes from a June 26 International Monetary Fund document that Greece 's former
finance minister, Yanis Varoufakis, called a "fascinating read." In
his bombastic style, he went on to assert: "Never before has a veritable
institution advocated policies that clashed so mercilessly with its own
research. Never before has the IMF agreed, on economic analysis, with a government
it sought to devastate."
Thursday, February 12, 2015
The Greek Austerity Myth
FEB 10,
2015 23
Daniel Gros
One critical difference lies in economic
fundamentals. Over the last two years, the eurozone's other peripheral
countries have proven their capacity for adjustment, by reducing their fiscal
deficits, expanding exports, and moving to current-account surpluses, thereby
negating the need for financing. Indeed, Greece is the only one that has
consistently dragged its feet on reforms and sustained abysmal export
performance.
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