Wed Dec 21, 2016 | 1:57pm EST
Reuters
Greece's euro zone lenders are confident a solution can be found shortly on reactivating short-term debt relief measures that were suspended after Athens decided to make an unexpected payout to poor pensioners, a euro zone source said on Wednesday.
Lenders said last week they were suspending a deal clinched earlier this month to offer Greece short-term debt relief after leftist Prime Minister Alexis Tsipras said he would grant low-income pensioners a pre-Christmas payout.
Showing posts with label Greek Crisis. Show all posts
Showing posts with label Greek Crisis. Show all posts
Thursday, December 22, 2016
Greece's Debt Problem Has Reached A Dangerous Point
DEC 21, 2016 @ 07:12 PM
John Mauldin , CONTRIBUTOR
I write about how you can make sense of unpredictable markets
Before the Italian banking crisis and referendum, before Brexit… there was Greece. Greece’s debt crisis was really the first public crack in the European Union’s armor and one that has yet to be repaired.
Readers who want to understand why anti-EU sentiment and nationalism have developed in many of these countries don’t have to look at migration or other controversial topics. Simply look at Greece and how it has fared after adopting the EU’s austerity terms.
The Greek experience with austerity-linked financial support from the EU has been painful and—making matters worse—rather ineffective. While Greece is on the periphery, its problems are hardwired into the entire EU, and those problems are spreading.
John Mauldin , CONTRIBUTOR
I write about how you can make sense of unpredictable markets
Before the Italian banking crisis and referendum, before Brexit… there was Greece. Greece’s debt crisis was really the first public crack in the European Union’s armor and one that has yet to be repaired.
Readers who want to understand why anti-EU sentiment and nationalism have developed in many of these countries don’t have to look at migration or other controversial topics. Simply look at Greece and how it has fared after adopting the EU’s austerity terms.
The Greek experience with austerity-linked financial support from the EU has been painful and—making matters worse—rather ineffective. While Greece is on the periphery, its problems are hardwired into the entire EU, and those problems are spreading.
Tuesday, December 20, 2016
German Finance Minister tells paper euro zone will fall apart if don't follow rules
Tue Dec 20, 2016 | 4:52am EST
Reuters
German Finance Minister Wolfgang Schaeuble, asked about Greece's plans to pay pensioners a Christmas bonus while it is in the midst of a bailout program, told Die Zeit paper that the euro zone would fall apart if countries did not stick to the rules.
Reuters
German Finance Minister Wolfgang Schaeuble, asked about Greece's plans to pay pensioners a Christmas bonus while it is in the midst of a bailout program, told Die Zeit paper that the euro zone would fall apart if countries did not stick to the rules.
Greece’s Long Winter
An early election would signal how much reform voters will support.
The Wall Street Journal
Dec. 19, 2016 7:11 p.m. ET
1 COMMENTS
Europe has a packed election schedule for 2017, and it’s set to grow more crowded if Greece holds another vote. The snap parliamentary poll that looks increasingly likely won’t solve the country’s economic problems, but at least the exercise would have the virtue of clarifying for Greeks and the rest of the eurozone how much reform Athens will be able to undertake.
The Wall Street Journal
Dec. 19, 2016 7:11 p.m. ET
1 COMMENTS
Europe has a packed election schedule for 2017, and it’s set to grow more crowded if Greece holds another vote. The snap parliamentary poll that looks increasingly likely won’t solve the country’s economic problems, but at least the exercise would have the virtue of clarifying for Greeks and the rest of the eurozone how much reform Athens will be able to undertake.
Friday, December 16, 2016
France puts weight behind Greece in debt dispute
The Washington Post
By Associated Press December 15 at 9:06 AM
BRUSSELS — French President Francois Hollande has come to the defense of Greece after European creditors pulled a recently announced debt relief package for the country.
Hollande said ahead of Thursday’s summit of European Union leaders that “it is out of the question to ask for further additional efforts from Greece or prevent them from taking a number of sovereign measures that respect the commitments” that Greece previously took.
Greece Pushes Forward With Measures Opposed by Creditors
Eurozone froze debt-relief offer over plans for pensioner benefit and suspension of sales-tax rise
The Wall Street Journal
By MARCUS WALKER and NEKTARIA STAMOULI
Updated Dec. 15, 2016 1:12 p.m. ET
ATHENS—Greece refused to back down in its rapidly escalating conflict with creditors, as lawmakers on Thursday passed measures to loosen the purse strings in a move that has angered Germany.
The fiscal largess, including a Christmas bonus for 1.6 million low-income pensioners and the suspension of a sales-tax increase on Aegean islands that have received refugees, led the eurozone to freeze debt-relief measures for Greece on Wednesday. Eurozone officials have criticized Athens for breaking promises to consult creditors before making any fiscal moves that could affect Greece’s bailout goals.
The Wall Street Journal
By MARCUS WALKER and NEKTARIA STAMOULI
Updated Dec. 15, 2016 1:12 p.m. ET
ATHENS—Greece refused to back down in its rapidly escalating conflict with creditors, as lawmakers on Thursday passed measures to loosen the purse strings in a move that has angered Germany.
The fiscal largess, including a Christmas bonus for 1.6 million low-income pensioners and the suspension of a sales-tax increase on Aegean islands that have received refugees, led the eurozone to freeze debt-relief measures for Greece on Wednesday. Eurozone officials have criticized Athens for breaking promises to consult creditors before making any fiscal moves that could affect Greece’s bailout goals.
Thursday, December 15, 2016
Eurozone Suspends Short-Term Debt Relief for Greece Amid Growing Friction
Move comes in response to Tsipras’s surprise fiscal gifts for pensioners and other Greeks, which creditors say run afoul of Athens’s bailout commitments
The Wall Street Journal
By VIKTORIA DENDRINOU
Dec. 14, 2016 12:18 p.m. ET
BRUSSELS—Greece’s European creditors suspended proposed debt-relief measures for the country after the Greek government surprised them by announcing it would boost welfare benefits for low-income pensioners, a sign of escalating tensions over the country’s bailout.
The moves come as Athens and its international creditors—which include the eurozone and the International Monetary Fund—are struggling to conclude their latest review of the country’s rescue plan of as much as €86 billion ($92 billion) in loans.
The Wall Street Journal
By VIKTORIA DENDRINOU
Dec. 14, 2016 12:18 p.m. ET
BRUSSELS—Greece’s European creditors suspended proposed debt-relief measures for the country after the Greek government surprised them by announcing it would boost welfare benefits for low-income pensioners, a sign of escalating tensions over the country’s bailout.
The moves come as Athens and its international creditors—which include the eurozone and the International Monetary Fund—are struggling to conclude their latest review of the country’s rescue plan of as much as €86 billion ($92 billion) in loans.
Wednesday, December 14, 2016
Greece Heads Toward New Crisis in Debt Saga as Support for Tsipras Slumps
The ruling Syriza party is considering calling snap elections in 2017, as it loses hope of winning concessions on debt relief or austerity from Greece’s creditors
The Wall Street Journal
By NEKTARIA STAMOULI and MARCUS WALKER
Dec. 12, 2016 1:48 p.m. ET
36 COMMENTS
ATHENS—Greece’s crisis is approaching a potential breaking point after a year of relative calm, as a government with declining political stamina confronts creditors’ unyielding demands.
The ruling left-wing Syriza party, grappling with slumping popularity, is considering the option of calling snap elections in 2017, as it loses hope of winning concessions on debt relief or austerity from the eurozone and International Monetary Fund.
No decision for elections has been made, said Greek officials, who added that they would review the state of negotiations in January, after pressing creditors again to show more flexibility.
The Wall Street Journal
By NEKTARIA STAMOULI and MARCUS WALKER
Dec. 12, 2016 1:48 p.m. ET
36 COMMENTS
ATHENS—Greece’s crisis is approaching a potential breaking point after a year of relative calm, as a government with declining political stamina confronts creditors’ unyielding demands.
The ruling left-wing Syriza party, grappling with slumping popularity, is considering the option of calling snap elections in 2017, as it loses hope of winning concessions on debt relief or austerity from the eurozone and International Monetary Fund.
No decision for elections has been made, said Greek officials, who added that they would review the state of negotiations in January, after pressing creditors again to show more flexibility.
Tuesday, December 13, 2016
The IMF is Not Asking Greece for More Austerity
Posted on December 12, 2016 by iMFdirect
By Maurice Obstfeld and Poul M. Thomsen
Versions in عربي (Arabic); Français (French); Deutsch (German); ελληνικά (Greek); and Español (Spanish)
Greece is once again in the headlines as discussions for the second review of its European Stability Mechanism (ESM) program are gaining pace. Unfortunately, the discussions have also spurred some misinformation about the role and the views of the IMF. Above all, the IMF is being criticized for demanding more fiscal austerity, in particular for making this a condition for urgently needed debt relief. This is not true, and clarifications are in order.
Monday, December 12, 2016
International migrant-smuggling ring dismantled in Greece
The Washington Post
By Associated Press December 12 at 10:20 AM
ATHENS, Greece — Greek and British authorities say they have dismantled an international ring suspected of smuggling hundreds of migrants to Britain and other European countries using falsified travel documents.
A Greek police statement says that 24 suspects were arrested last week in the Athens area, and another nine in Glasgow, Northampton and Manchester in Britain.
Friday, December 9, 2016
Prime Minister Announces Handouts as Strike Cripples Greece
By THE ASSOCIATED PRESSDEC. 8, 2016, 3:21 P.M. E.S.T.
The New York Times
ATHENS, Greece — As thousands of Greeks protested against government spending cuts during a general strike that crippled the country Thursday, struggling Prime Minister Alexis Tsipras announced one-off measures to ease the burden on pensioners and island residents.
Tsipras said the government would distribute a total of 617 million euros this Christmas to some 1.6 million low-income pensioners, replacing a holiday bonus scrapped by Greece's bailout creditors.
In a nationally televised address, Tsipras said the cash would come from a larger-than-expected surplus in Greece's primary budget, which excludes the cost of servicing the country's crippling debt.
Tsipras has seen his popularity plummet after a series of income cuts and tax hikes demanded by creditors. His left-wing Syriza party trails the main opposition conservatives by more than 10 percentage points in opinion polls.
The New York Times
ATHENS, Greece — As thousands of Greeks protested against government spending cuts during a general strike that crippled the country Thursday, struggling Prime Minister Alexis Tsipras announced one-off measures to ease the burden on pensioners and island residents.
Tsipras said the government would distribute a total of 617 million euros this Christmas to some 1.6 million low-income pensioners, replacing a holiday bonus scrapped by Greece's bailout creditors.
In a nationally televised address, Tsipras said the cash would come from a larger-than-expected surplus in Greece's primary budget, which excludes the cost of servicing the country's crippling debt.
Tsipras has seen his popularity plummet after a series of income cuts and tax hikes demanded by creditors. His left-wing Syriza party trails the main opposition conservatives by more than 10 percentage points in opinion polls.
Wednesday, December 7, 2016
Give Greece Credit, Even Just for Treading Water
25DEC 6, 2016 1:23 AM EST
By
Mark Gilbert
Bloomberg
Here are two things I'll bet most people don't know about Greece. The country's just-appointed minister of economy and development, Dimitri Papadimitriou, was lured away from his position as head of the Levy Economics Institute at Bard College in America. He's not a member of the ruling Syriza party. And the man appointed secretary general for public revenue in January is Giorgos Pitsillis, a professional tax lawyer. He's not a party member, either.
Europe's Still Dithering Over Greece
Bloomberg
Editorial Board
DEC 7, 2016 12:30 AM EST
This week, the European Union’s finance ministers granted some new debt relief to Greece. The new “short-term” measures are better than nothing -- but they’re less than a convincing solution to a problem that has dragged on far too long.
The deal, sketched out and agreed to in principle earlier this year, should help the Greek government convince voters to keep accepting much-needed domestic reform. That’s good. It isn’t enough, though, to put the country’s debts and budget plans on a sustainable footing. That’s why the International Monetary Fund, whose support will be necessary to achieve that larger goal, isn’t yet on board. After years of muddling through, the issue still isn’t resolved.
EU Offers Greece Near-Term Debt Relief, Demands More Reforms
by Nikos Chrysoloras , Corina Ruhe , and Jonathan Stearns
December 5, 2016 — 2:59 PM EST December 5, 2016 — 4:12 PM EST
Regling says steps may cut debt by 20 percentage points of GDP
Debt measures ‘very promising,’ says Greece’s Tsakalotos
Euro-area finance ministers agreed to measures that will help ease Greece’s debt burden, while insisting that the government of Prime Minister Alexis Tsipras adopt “serious” reforms that will ensure the nation maintains a proper fiscal record after the end of its current bailout.
Finance ministers from the currency bloc meeting in Brussels clinched steps that could cumulatively reduce Greece’s debt by 20 percentage points relative to gross domestic product through 2060, Klaus Regling, managing director of the European Stability Mechanism, said Monday. The measures include easing the repayment schedule of bailout loans, waiving a coupon penalty that would amount to about 200 million euros ($215 million) and swapping debt to mitigate interest rate risk.
Tuesday, December 6, 2016
Greece gets short-term debt relief from eurozone
By Pan Pylas | AP December 5 at 4:14 PM
The Washington Post
BRUSSELS — Greece won some short-term debt relief from European creditors on Monday even though it failed to clear the latest hurdle in its bailout program that has prevented the country going bankrupt and crashing out of the euro.
At a meeting of the 19 eurozone finance ministers in Brussels that was largely overshadowed by the Italian referendum result that forced Premier Matteo Renzi to offer his resignation, Greece’s creditors offered some immediate help to the cash-strapped Greek government.
The Washington Post
BRUSSELS — Greece won some short-term debt relief from European creditors on Monday even though it failed to clear the latest hurdle in its bailout program that has prevented the country going bankrupt and crashing out of the euro.
At a meeting of the 19 eurozone finance ministers in Brussels that was largely overshadowed by the Italian referendum result that forced Premier Matteo Renzi to offer his resignation, Greece’s creditors offered some immediate help to the cash-strapped Greek government.
Monday, December 5, 2016
Greece sees final solution on debt crisis amid euro uncertainty
Sun Dec 4, 2016 | 12:22pm EST
Reuters
Political uncertainty in Europe has created fresh momentum for a "comprehensive and permanent" solution to the Greek debt crisis before the year ends, a government spokesman said on Sunday.
Euro zone finance ministers will meet in Brussels on Monday to discuss short-term debt relief for Greece, and Germany's Wolfgang Schaeuble said it must implement reforms instead of hoping for further debt forgiveness.
Greece remained optimistic for a final debt deal, however, just as Italians are voting on a constitutional referendum on Sunday and a victory for the opposition 'No' camp may push the euro zone toward fresh crisis.
Reuters
Political uncertainty in Europe has created fresh momentum for a "comprehensive and permanent" solution to the Greek debt crisis before the year ends, a government spokesman said on Sunday.
Euro zone finance ministers will meet in Brussels on Monday to discuss short-term debt relief for Greece, and Germany's Wolfgang Schaeuble said it must implement reforms instead of hoping for further debt forgiveness.
Greece remained optimistic for a final debt deal, however, just as Italians are voting on a constitutional referendum on Sunday and a victory for the opposition 'No' camp may push the euro zone toward fresh crisis.
Greece and Its Creditors Get Back on a Collision Course
Greece’s woes oblige the eurozone to do something it has rarely appeared capable of doing: take a collective political decision, Simon Nixon writes.
The Wall Street Journal
By SIMON NIXON
Updated Dec. 4, 2016 1:44 p.m. ET
9 COMMENTS
In a continent beset by multiple crises, Greece remains the cradle of European dysfunction. The country may have dropped out of the headlines in recent months, its multiple challenges seemingly buried under a tide of bailout cash. Yet it still presents the greatest risk to the survival of the eurozone. That is because Greece’s circumstances oblige the eurozone to do something it has so far appeared incapable of doing, except under conditions of extreme financial stress: take a collective political decision.
The Wall Street Journal
By SIMON NIXON
Updated Dec. 4, 2016 1:44 p.m. ET
9 COMMENTS
In a continent beset by multiple crises, Greece remains the cradle of European dysfunction. The country may have dropped out of the headlines in recent months, its multiple challenges seemingly buried under a tide of bailout cash. Yet it still presents the greatest risk to the survival of the eurozone. That is because Greece’s circumstances oblige the eurozone to do something it has so far appeared incapable of doing, except under conditions of extreme financial stress: take a collective political decision.
Sunday, December 4, 2016
WHY THE FRAGILE STABILITY IN GREECE MAY NOT LAST MUCH LONGER
A crunch summit with creditors begins Monday.
BY JOSH LOWE ON 12/3/16 AT 2:59 PM
Newsweek
It was late November in Athens, and the city felt empty. A string of surprise thunderstorms kept people imprisoned indoors and outside the Greek parliament in Syntagma Square—where anti-austerity protests raged throughout the summer of 2015—was bare but for a few brave tourists and one quizzical-looking stray dog watching the Evzones guards perform their distinctive, shuffling shift change routine, complete with pom-pom shoes and kilts. With so much unrest elsewhere in Europe, it would be easy to think Greece is heading toward relative quietude.
The coming weeks could change all that. On December 5, the finance ministers of the Eurozone will meet in Brussels for their last scheduled summit of the year. On the agenda is the ongoing second review of Greece’s bailout program, which since 2015 has allowed the country to receive financial assistance from European creditors that will eventually total €86 billion ($91.7 billion) in exchange for carrying out reforms including shrinking the public sector, reining in government spending and raising taxes.
BY JOSH LOWE ON 12/3/16 AT 2:59 PM
Newsweek
It was late November in Athens, and the city felt empty. A string of surprise thunderstorms kept people imprisoned indoors and outside the Greek parliament in Syntagma Square—where anti-austerity protests raged throughout the summer of 2015—was bare but for a few brave tourists and one quizzical-looking stray dog watching the Evzones guards perform their distinctive, shuffling shift change routine, complete with pom-pom shoes and kilts. With so much unrest elsewhere in Europe, it would be easy to think Greece is heading toward relative quietude.
The coming weeks could change all that. On December 5, the finance ministers of the Eurozone will meet in Brussels for their last scheduled summit of the year. On the agenda is the ongoing second review of Greece’s bailout program, which since 2015 has allowed the country to receive financial assistance from European creditors that will eventually total €86 billion ($91.7 billion) in exchange for carrying out reforms including shrinking the public sector, reining in government spending and raising taxes.
Greece needs reforms, not debt relief: Germany's Schaeuble
Sat Dec 3, 2016 | 6:30pm EST
Reuters
Structural reforms rather than debt relief will help Greece to achieve sustainable growth and stay in the euro zone because rates and repayment are putting hardly any burden on its budget, Gerany's finance minister was quoted as saying on Sunday.
Euro zone finance ministers will meet in Brussels on Monday to discuss short-term measures to lighten Greece's debt burden and to assess Athens' progress in reforms required within its third bailout program.
Asked in an interview by Bild am Sonntag newspaper whether it might be time to tell German voters that a debt cut for Greece was inevitable, Finance Minister Wolfgang Schaeuble said: "That would not help Greece."
Reuters
Structural reforms rather than debt relief will help Greece to achieve sustainable growth and stay in the euro zone because rates and repayment are putting hardly any burden on its budget, Gerany's finance minister was quoted as saying on Sunday.
Euro zone finance ministers will meet in Brussels on Monday to discuss short-term measures to lighten Greece's debt burden and to assess Athens' progress in reforms required within its third bailout program.
Asked in an interview by Bild am Sonntag newspaper whether it might be time to tell German voters that a debt cut for Greece was inevitable, Finance Minister Wolfgang Schaeuble said: "That would not help Greece."
Friday, December 2, 2016
Eurozone Bailout Fund Proposes Short-Term Debt Relief for Greece
ESM proposes extension on some maturities and locking in the interest on some loans to ease Greece’s debt load
The Wall Street Journal
By VIKTORIA DENDRINOU
Updated Nov. 30, 2016 7:57 a.m. ET
2 COMMENTS
BRUSSELS—Confidential proposals drawn up by the eurozone’s bailout fund could reduce Greece’s debt load by about a fifth in 2060.
A six-page document, dated Nov. 25 and seen by The Wall Street Journal, was produced by the European Stability Mechanism, the Luxembourg-based eurozone bailout fund. It outlines measures that could be taken in the near future to reduce Greece’s large debt load.
The paper proposes to ease Greece’s debt load by extending some maturities and locking in the interest on some of Greece’s loans to shield it from future interest-rate increases.
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