Showing posts with label Primary surplus. Show all posts
Showing posts with label Primary surplus. Show all posts

Monday, May 29, 2017

Greek Creditors, IMF Seek to Bridge Split Over Debt Relief

by Viktoria Dendrinou  and Rainer Buergin
21 Μαΐου 2017, 4:11 μ.μ. EEST 22 Μαΐου 2017, 7:16 μ.μ. EEST


Euro-area finance ministers gathered in Brussels on Monday, seeking a compromise with the International Monetary Fund on debt relief for Greece that could signal the final act in the seven-year-old drama for the continent’s most indebted state.

The IMF is reluctant to participate in a bailout unless the euro area ensures the country’s 315 billion-euro ($355 billion) debt load is sustainable. Some nations like Germany that are resisting a change to Greece’s debt profile won’t release any new funds until the Washington-based fund joins the program. Athens needs the new aid installment before it has to repay about 7 billion euros to lenders in July.

Thursday, May 25, 2017

No Greek debt relief needed if primary surplus above 3 percent/GDP for 20 years: paper

Wed May 24, 2017 | 9:24am EDT


By Gernot Heller | BERLIN
Greece will not need any debt relief from euro zone governments if it keeps its primary surplus above 3 percent of GDP for 20 years, a confidential paper prepared by the euro zone bailout fund, the European Stability Mechanism (ESM), showed.

The paper, obtained by Reuters, was prepared for euro zone finance ministers and International Monetary Fund talks last Monday, which ended without an agreement due to diverging IMF and euro zone assumptions on future Greek growth and surpluses.

Friday, April 21, 2017

Greece Hits a Bailout Target. The IMF Is Not Convinced

by Sotiris Nikas
20 Απριλίου 2017, 10:19 π.μ. EEST


Greece achieved a 2016 primary surplus almost seven times higher than its bailout target, but the International Monetary Fund is skeptical the country can sustain that performance.

The Hellenic Statistical Authority is set on Friday to unveil data on last year’s primary surplus, which Eurostat is expected to validate on Monday. The surplus will be close to 4 percent of gross domestic product, according to a finance ministry official who asked not to be identified in line with policy. The bailout target was for a primary surplus of 0.5 percent of GDP.

Monday, March 6, 2017

Greece's fiscal targets should be eased to help growth, central bank chief says

Sat Mar 4, 2017 | 9:17am EST


Greece's international lenders should lower the country's fiscal targets from 2021 onwards to help boost its growth potential, central bank governor Yannis Stournaras said on Saturday.

Stournaras told an economic forum in Delphi that primary surplus targets - excluding debt servicing costs - should be lowered to 2 percent of gross domestic product (GDP) from 2021 onwards from 3.5 percent that is now envisaged.

Wednesday, February 1, 2017

Η Επιστολή Τσακαλώτου

 "Σε απάντηση της προκαταρκτικής αξιολόγησης των θεσμών για το επίδομα για τις συντάξεις και τν ΦΠΑ που ψηφίστηκαν από την ελληνική Βουλή και εφαρμόστηκαν από τις ελληνικές αρχές αλλά και τις απόψεις που εκφράστηκαν στην έκτακτη τηλεδιάσκεψη του Eurogroup στις 20 Δεκεμβρίου, θα ήθελα να καταστήσω σαφές τα ακόλουθα:

Σε ό,τι αφορά το μέτρο για τις συντάξεις, παρακαλώ να σημειωθεί ότι τόσο ο πρωθυπουργός όσο και εγώ ο ίδιος καταστήσαμε δημοσίως ξεκάθαρο, και θα συνεχίσουμε να το πράττουμε, ότι πρόκειται για ένα εφάπαξ ποσό που δεν θα έχει μόνιμη επίδραση στην πρόσφατη μεταρρύθμιση για τις συντάξεις. Σχετικά με την προσωρινή αναστολή της αύξησης του ΦΠΑ στα νησιά για συγκεκριμένα νησιά του Αιγαίου το μέτρο θα εφαρμοστεί μόνο για το 2017 και χρηματοδοτείται πλήρως από τον προϋπολογισμό του 2017.

Οι ελληνικές αρχές δεσμεύονται πλήρως να ακολουθήσουν το δημοσιονομικό πλαίσιο που έχει συμφωνηθεί και που βασίζεται στους στόχους για πρωτογενές πλεόνασμα 0,5%, 1,75% και 3,5% για το 2016, 2017 και 2018 αντίστοιχα. Οι ελληνικές αρχές θα ενεργοποιήσουν τον «δημοσιονομικό κόφτη» που θεσμοτήθηκε στο πλαίσιο της πρώτης αξιολόγησης όπως προβλέπεται στο νόμο 4389/16, σε περίπτωση που τα αποτελέσματα που θα επικυρωθούν από την Eurostat αποδεικνύουν ότι δεν έχουν επιτευχθεί οι στόχοι.

Friday, December 16, 2016

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

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.

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.

Eurozone Finance Ministers Agree to Some Debt Relief for Greece’s Bailout

Maturities extended and interest rates locked on some Greek debt but no agreement yet on IMF participation

The Wall Street Journal

Updated Dec. 5, 2016 4:10 p.m. ET

BRUSSELS—Eurozone finance ministers, seeking to get the International Monetary Fund to participate in Greece’s bailout, agreed on a package of short-term measures that could ease the country’s debt load by around a fifth in 2060.

The ministers, gathering in Brussels for their monthly meeting on Monday, had hoped to move closer to agreeing on a set of overhauls Greece must enact under its bailout—which could reach €86 billion ($92.3 billion)—as well as a series of debt-relief measures from its European creditors. Both steps are required to get the IMF to participate in the bailout.

Tuesday, November 29, 2016

Eurogroup should be 'realistic' on Greece fiscal targets: Dijsselbloem

Tue Nov 29, 2016 | 4:45am EST


The chair of the Eurogroup of euro zone finance ministers said on Tuesday that European lenders should be "realistic" in the fiscal targets they set for Greece after 2018, when a program of financial aid will end.

"We need to be realistic," Jeroen Dijsselbloem told the economic affairs committee of the European Parliament, saying that the International Monetary Fund has a point when it says "running a primary surplus of 3.5 percent for a very long time is a huge thing to ask".

Tuesday, March 17, 2015

Greece: update on public finances

The State primary budget balance has returned almost in line with the target, but mostly due to expenditure cuts. Revenues continue to underperform.

by Silvia Merler on 16th March 2015


At the end of last week the Greek Finance Ministry published the preliminary budget execution bulletin for February. The State primary budget balance has returned almost in line with the target, but mostly due to expenditure cuts. Revenues continue to underperform.

Tuesday, January 27, 2015

Greece: Think Flows, Not Stocks

 JANUARY 26, 2015 7:26 PM

Paul Krugman

The New York Times

How should we think about the bargaining that may or may not now take place between the new Greek government and the troika? (No bargaining if the troika basically says no concessions.) Most discussion is framed in terms of what happens to the debt. But as both Daniel Davies and James Galbraith point out — with very different de facto value judgments, but never mind for now — at this point Greek debt, measured as a stock, is not a very meaningful number. After all, the great bulk of the debt is now officially held, the interest rate bears little relationship to market prices, and the interest payments come in part out of funds lent by the creditors. In a sense the debt is an accounting fiction; it’s whatever the governments trying to dictate terms to Greece decide to say it is.

Friday, November 21, 2014

Greece Expects Primary Budget Surplus for 2015

But Spending Plans Not Agreed with Creditors
The Wall Street Journal

Updated Nov. 21, 2014 7:03 a.m. ET
ATHENSGreece’s 2015 budget, submitted by the government to parliament on Friday, aims to meet the fiscal demands of the country’s creditors but comes without the prior approval of its troika of international inspectors.

Thursday, April 24, 2014

More Greek Statistics? Troika Confirms Primary Surplus

9:17 am ET Apr 23, 2014
The Wall Street Journal

The European Commission said Wednesday that Greece recorded a primary surplus of €1.5 billion in 2013, overshooting a target of a balanced primary balance and paving the way for the country’s talks on debt relief later this year.

Hurray, many said: Athens has finally met its budget goals, after years of failing to comply with austerity targets that crushed the economy and were later viewed as too tough even by Greece’s creditors. This latest development means that the Greek government can redistribute some of the above-target surplus to its citizens. (In theory, it also means Greece could default on external debt and continue paying pensions and salaries internally from the taxes it raises, but that’s a different story.)

Wednesday, April 23, 2014

Greece qualifies for new debt relief after 2013 budget surplus

BRUSSELS/ATHENS Wed Apr 23, 2014 7:59am EDT
(Reuters) - Greece is set to obtain more debt relief from its international lenders after European officials confirmed on Wednesday that Athens had topped its fiscal targets and achieved a budget surplus in 2013.

Wednesday's announcement come on the fourth anniversary of Greece's official request for a bailout after it lost access to global bond markets. Earlier this month, Greece returned to the markets with the sale of five-year bonds.

The budget surplus is a sign of the progress Greece has made to fix its finances after four years of tough bailout-imposed austerity that wiped out almost a quarter of its GDP and sent unemployment to record highs of almost 28 percent.

Friday, March 28, 2014

Euro zone not preparing third Greek bailout so far: official

BRUSSELS Thu Mar 27, 2014 6:45pm EDT
(Reuters) - The euro zone is not making any preparations for a third bailout for Greece and will consider it only if expressly asked by Athens, which has not happened so far, a senior euro zone official said on Thursday.

Instead, the euro zone is now focusing on the timing and size of disbursements of badly delayed tranches of loans that have already been promised under the first two rescue packages, the official, directly involved in the Greek bailouts said.

Wednesday, March 12, 2014

Greece posts wider primary budget surplus in Jan-Feb

ATHENS, March 11 Tue Mar 11, 2014 6:40am EDT
(Reuters) - Greece's central government posted a primary budget surplus, before interest payments, of 2.1 billion euros ($2.91 billion) in the first two months of the year, compared to a surplus of 487 million euros in the same period last year, deputy finance minister Christos Staikouras said on Tuesday.

This is far above an interim target for a surplus in Jan-Feb of 1.047 billion euros. The figure excludes the budgets of social security organisations and local administration.

Tuesday, December 3, 2013

Greek deputy PM says lenders 'footdragging' on bailout review

ATHENS Mon Dec 2, 2013 8:01pm IST

(Reuters) - Greece's deputy prime minister accused its lenders of Monday of obstructing bailout talks after inspectors from the EU and IMF postponed a visit over a lack of progress on reforms.

The troika of the European Commission, the European Central Bank and the International Monetary Fund have been pushing Greece to accept measures that do nothing to fix the country's finances, said Evangelos Venizelos, also head of the left-wing PASOK party, a junior partner in the coalition government.

"Nothing justifies a new round of friction, foot-dragging and tension with the troika. Nothing," Venizelos said in a speech at a conference.

Sunday, November 24, 2013

"Light at the end of the tunnel" for Greece?

Deutsche Welle
Greece is on the right track, said Chancellor Merkel after meeting with Greek Prime Minister Samaras in Berlin. Samaras used the occasion to hold the EU, ECB and IMF Troika to past promises of relief.
Things are going forward in highly indebted Greece, at least that's the way Germany's chancellor saw it. "The prime minister was able to present a series of impressive facts to me, and Greece has made significant progress," German Chancellor Angela Merkel said after a meeting with Greek Prime Minister Antonis Samaras at the Chancellery in Berlin. "A lot has been accomplished there in the last few years."
The extent of the praise is surprising given Germany's recent disagreement with European partners regarding Greece's next tranche from its second aid package. The Troika, comprised of the EU, ECB and IMF, has been seeking Greek clarification of a 1.5 billion euro ($2 billion) gap in the country's 2014 budget plans. EU countries had also criticized Greece for its lack of progress with regard to reforms.

Thursday, November 21, 2013

UPDATE 1-Greek budget predicts higher surplus, maintains growth target

Thu Nov 21, 2013 5:19am EST
Nov 21 (Reuters) - Greece more than doubled its forecast for a budget surplus before interest payments this year and confirmed it will emerge from a six-year recession next year, hinting there is light at the end of the tunnel for its battered economy.

After nearly going bankrupt and crashing out of the euro zone last year, Athens has been buoyed by more positive economic news in recent months as tourism revenues rise and it makes progress in bringing its finances back on track.

Wednesday, September 11, 2013

Greece says primary budget surplus means it on track to hit EU-IMF targets

By Harry Papachristou and Lefteris Papadimas
ATHENS | Tue Sep 10, 2013 5:53am EDT
(Reuters) - Greece said on Tuesday its budget was in surplus, not counting interest payments, and that it was on course to hit fiscal targets and fulfill conditions to seek additional debt relief from its international lenders.

The central government had a primary budget surplus of 2.92 billion euros ($3.87 billion) between January and August, the finance ministry said.