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.

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."

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.

Tired of Syriza, Greece embraces a mainstream party

The centre-right New Democracy party is dull, technocratic and leading the polls
Dec 3rd 2016 | ATHENS


The Economist

THE headquarters of New Democracy, a centre-right political party, is in an unexpected part of Athens. The building, surrounded by warehouses, housed a branch of a Japanese technology firm before standing derelict for years. Few other political types are nearby. The rent, at €9,800 ($10,400) a month, is a tenth of what the party’s old office used to cost. Yet the relocation, which happened in August, is also symbolic. As the opposition party has moved to a cheaper part of town, so too does it hope that it can present itself to the public as a new, improved alternative to the Greek government. With Alexis Tsipras, the prime minister (pictured, on the left), growing less popular, New Democracy may well have a chance.

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

Tue Nov 29, 2016 | 4:45am EST

Reuters

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".

Greece can meet 2017 primary surplus, must conclude bailout review- cenbanker

Tue Nov 29, 2016 | 3:25am EST

Reuters
Nov 29 Greece can achieve a primary budget surplus of 2 percent next year, the head of the country's central bank said on Tuesday, warning that the main risk for the economy would be a failure to conclude a crucial bailout review.

"Despite the positive projections ... serious risks remain," Yannis Stournaras told a conference in Athens. "The main risk would be the eventuality of failing to reach agreement on the second bailout review and any delays in implementing the programme or backtracking."

EU Sees ‘Smooth Sailing’ If Greece Implements Needed Reforms

 Richard Bravo

 Matthew Miller

November 18, 2016 — 11:15 AM EET Updated on November 18, 2016 — 11:35 AM EET

Greece and the institutions managing its bailout, currently negotiating policy reforms in Athens, could clear the way for discussions next month to ease the terms of the nation’s debt burden, which could presage a successful resolution of its rescue program, according to the head of the euro area’s Economic and Financial Committee of finance deputies.
“You need to do the reforms and that will bring back growth and that will then unlock those measures which in reality we’ve already agreed on,” Thomas Wieser, head of the Euro Working Group, said in an interview with Bloomberg Television. “I’m very positive by the end of this year we’ll be there then it should be comparatively smooth sailing for the rest of the program.”

Obama Keeps Hope Alive for Crisis-Ridden Greece

Bloomberg

 Marcus Bensasson

 Eleni Chrepa

16-11-2017

When a U.S. president last visited Greece, the economy was booming, Athens had been awarded the Olympics and the country was preparing to join the euro.
That was in 1999, and as Barack Obama gives his keynote speech on Wednesday defending democracy in its birthplace, the spotlight will inevitably fall on Greece’s deterioration. Its journey to the brink of bankruptcy, dragging down financial markets worldwide, was among the defining international events of Obama’s eight years in office and few places better show the ensuing forces of populism that ultimately brought in Donald Trump to replace him.

Greece to ease capital controls soon, needs debt measures: Stournaras

Thu Nov 10, 2016 | 5:50am EST

Reuters

By George Georgiopoulos and Balazs Koranyi | ATHENS
Greece will soon ease capital controls further but full liberalization will depend on progress in easing the country's debt burden, which is also a precondition for entering the ECB's asset buying scheme, central bank chief Yannis Stournaras said.

Propped up by three successive bailouts, Greece hopes to emerge from a long recession next year. But much of its outlook depends on getting a long-sought reduction of its huge debt pile, easing capital restrictions and inclusion in the ECB's 1.74 trillion asset buying scheme.

Greece's bank fund may call for NBG shareholder meeting

Wed Nov 9, 2016 | 1:35pm EST

Reuters

Greece's bank rescue fund said it might call a special shareholder meeting at National Bank of Greece (NBGr.AT) after voting against the appointment of a new chairman.

The rescue fund, known has HFSF, which holds a 40 percent stake in NBG, said in a statement on Wednesday that it might call an extraordinary shareholders meeting on the issue.

"HFSF... is contemplating calling an extraordinary general meeting taking into account that the smooth cooperation between the board of directors of NBG and the controlling shareholder is essential," the fund said.

For Greeks, property equals debt

2 Nov 2016

Nikos Konstandaras Contributing Writer

The New York Times

People are turning their backs on what used to be a pillar of the country’s economy and society: real estate.

At law courts throughout Greece, people are lining up to file papers renouncing their inheritance. Not necessarily because some feckless uncle left them with a pile of debt at the end of his revels; they are turning their backs on what used to be a pillar of Greece’s economy and society: real estate. Growing personal debt, declining incomes and ever higher taxes as Greece’s depression grinds on have turned property and the dream of easy money into dread of a catastrophic burden.

Greece Set to Receive Fresh Loans Under Bailout Agreement

Eurozone bailout fund officials expected to sign off on disbursement Tuesday

The Wall Street Journal

By VIKTORIA DENDRINOU
Oct. 24, 2016 2:45 p.m. ET
1 COMMENTS
BRUSSELS—Greece’s creditors are expected to approve €2.8 billion in fresh loans for the debt-ridden country after it completed a set of key economic overhauls, three eurozone officials said Monday.

The disbursement of the next slice of financial aid, to be officially signed off by the eurozone bailout fund on Tuesday, marks the formal end of the first review of Greece’s up-to-€86 billion bailout, which was agreed to in August last year.

The loans will comprise of €1.1 billion to be used for debt servicing and €1.7 billion to repay arrears owed to domestic contractors.

Opinion: Appearance and reality in Greece

Greece's euro crisis has disappeared from the headlines, but the problem has still not been resolved. And since nothing much is changing in Athens, it will soon be a hot topic once again, says Spiros Moskovou.

Deutsche Welle

"I hereby declare the nonprivatization of the state electricity company DEI to be one of Syriza's key political concerns," Energy Minister Panos Skourletis announced at the governing party's conference in Athens last weekend. Yet last May, the government of Prime Minister Alexis Tsipras, together with the Greek parliament, approved an initial list of state-owned businesses for privatization.
An important point here is the sale of a quantity of shares in DEI. The whole privatization package is intended to bring in revenue of 2.5 billion euros ($2.7 billion) for the Greek treasury by the end of the year.

Greece Might Just Get a Boost From an Unlikely Source

The cash-strapped nation stands to gain a lift to demand from the aid effort for refugees

Bloomberg

Nikos Chrysoloras

October 20, 2016 — 7:01 AM EEST

As European Union leaders gather in Brussels on Thursday with the refugee crisis on the agenda, some of them may repeat the claim that their economies can't bear the cost of aiding people fleeing war and persecution. Greece ought not to be one of them.
After all it has been through in the past six years, the arrival of tens of thousands of refugees from across the Aegean may in fact be giving the country a mild, short-term stimulus.
Hundreds of millions of euros have been spent so far to provide shelter, provisions, and support to migrants and asylum seekers, in a period when government-funded spending has taken successive cuts.

EU Sagas of Greece, Transaction Tax Back in Focus: Brussels Beat

Jonathan Stearns
October 10, 2016 — 1:00 AM EEST

Bloomberg

Two European Union financial sagas return to the spotlight this week. One is Greece. The other is the financial transaction tax being pursued by 10 EU governments.
During much of last year, it would have been reasonable to bet that the FTT initiative had a better chance of succeeding than Europe’s efforts over half a decade to keep Greece in the euro area. Concerns about the health of Deutsche Bank AG and other European lenders add to the reasons why that’s no longer the case -- and just how far the tables have turned will be on display when EU finance ministers gather in Luxembourg on Oct. 10-11.
Euro-area finance chiefs will decide on Monday whether Greece, in its third international rescue program since 2010, qualifies for another disbursement of aid. At stake is a 2.8 billion-euro ($3.1 billion) payout tied to Greek overhauls in areas in such as pensions, bank governance and the energy market.

Greece Clears Hurdle Toward Another Round of Bailout Aid

Greek economic overhauls win approval from eurozone finance ministers; $3 billion more in aid coming

The Wall Street Journal

By VIKTORIA DENDRINOU
Oct. 10, 2016 2:03 p.m. ET


LUXEMBOURG—Greece has completed a set of key economic overhauls, eurozone finance ministers agreed Monday, marking the end of the first review of its fiscal bailout and clearing the way for disbursement of new loans to Athens.

The ministers, who were here for their monthly meeting, gave their blessing to €2.8 billion ($3.12 billion) in the next stage of financial aid, but they stopped short of signing off on it immediately. Instead, they said the country would receive the funds at the end of the month, when data on repayments Greece has made to domestic contractors should also be available.

While the next slice won’t be made immediately available, the fact that Greece’s creditors agreed that all the economic overhauls have been implemented essentially completes the lengthy first review of the country’s third bailout, which could amount to €86 billion

IMF says still engaged with Greece, no decision yet on bailout role

Sun Oct 9, 2016 | 12:21pm EDT

Reuters

The International Monetary Fund said on Sunday it is still fully engaged in talks to join the Greek bailout program and has not yet decided on what role it will take.

The IMF's comment came after two sources with direct knowledge of the Greek bailout talks told Reuters on Saturday that negotiations for the fund to commit financial resources to the program are making little headway and the IMF likely would accept a special advisory status with limited powers.

"We remain fully engaged, with the aim of reaching agreement on a program that the fund can support with a new arrangement, as requested by the authorities," IMF spokesman Gerry Rice said in an emailed statement on Sunday. "In this regard a mission team will visit Athens soon."

Greece’s 2017 Budget Plan Sticks With Robust Growth Forecast

But analysts say austerity and tight credit conditions are likely to weigh on economy

The Wall Street Journal

By STELIOS BOURAS
Oct. 3, 2016 11:21 a.m. ET
0 COMMENTS
ATHENS—Greece’s budget plan for 2017 sees the economy rebounding strongly after a seven-year slump, but analysts say continued austerity and tight credit conditions are likely to weigh on its recovery prospects amid uncertainty over the country’s public debt.

Finance Minister Euclid Tsakalotos submitted a draft copy of the budget to parliament on Monday that is expected to be finalized in coming weeks after the country resumes talks with lenders on its reform program.

The 53-page budget sticks with Greece’s previous forecasts that the economy is expected to contract by 0.3% this year before growing by 2.7% in 2017. Many see these targets as too optimistic, saying the economy is now entering a period of stagnation, rather than growth, having shrunk by more than 25% since the debt crisis erupted in 2010.

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.

What’s Derailing Greece’s Plan to Sell State Assets? Its Own Government

The ruling Syriza party must privatize chunks of the country’s infrastructure to meet bailout terms. Many of its ministers are standing in the way

The Wall Street Journal

By NEKTARIA STAMOULI
Updated Oct. 3, 2016 12:09 a.m. ET

ATHENS—The day that Christos Spirtzis became responsible for much of Greece’s ambitious privatization program, he vowed to ensure it failed.

Greece’s leftist infrastructure minister has resisted every sale of roads, airports and trains, even though he and his government have promised to raise €50 billion from privatizations as part of the country’s international bailout.

“I hope the deal will not bear fruit,” the combative, chain-smoking former labor unionist said after his government, under pressure from Greece’s creditors, confirmed the sale of 14 regional airports to a German investor. He backed calls for local referendums to scuttle the deal. When he finally had to sign the contract, he did so “with a great deal of pain,” he told Greek radio listeners in a trembling voice.