Wrong Prescription for Greece

The New York Times

July 9, 2013

By THE EDITORIAL BOARD

Greece and its financial overseers agreed on terms for continued bailout payments on Monday. The agreement is cause for relief — without it Greece would go bankrupt. But, at the same time, it is no cause for celebration — indeed, quite the opposite. Greece must eventually carry out painful reforms. But the precondition for these reforms is not the austerity demanded by the agreement but economic revival.

EU Agrees to Keep Aid Flowing to Greece

By MATINA STEVIS, MATTHEW DALTON and FRANCES ROBINSON CONNECT

The Wall Street Journal

BRUSSELS—Greece's international creditors reported Monday that all isn't well with the country's mammoth bailout program, but euro-zone finance ministers decided the problems weren't enough for them to stop the flow of financial aid to Athens.

Euro zone grants multi-billion euro lifeline for Greece

By Annika Breidthardt and Martin Santa

BRUSSELS | Mon Jul 8, 2013 4:27pm EDT

(Reuters) - Greece secured a lifeline from the euro zone and the IMF on Monday but was told it must keep its promises on cutting public sector jobs and selling state assets to get all the cash.

The 6.8 billion euro ($8.7 billion) deal, which spares Greece defaulting on debt in August, will see Athens drip fed support under close watch from the euro zone and the International Monetary Fund to ensure implementation of unpopular reforms.

Greece, Troika Optimistic on Reaching Deal Before Meeting

By Paul Tugwell & Tom Stoukas - Jul 8, 2013 1:01 AM GMT+0300

Greek Finance Minister Yannis Stournaras said the government probably will reach a deal with international creditors before today’s Eurogroup meeting to keep bailout funds flowing to the country.

“I’m optimistic that we will close a deal,” Stournaras said yesterday in Athens after a seventh day of talks with representatives of the so-called troika of the International Monetary Fund, European Central Bank and European Commission.

Greece, foreign lenders close in on deal to unlock aid

By Lefteris Papadimas and Ingrid Melander

ATHENS/AIX-EN-PROVENCE, France | Sun Jul 7, 2013 4:41pm EDT

(Reuters) - Greece is likely to reach a deal with foreign lenders on its latest bailout review before a meeting of euro zone finance ministers on Monday to decide on further aid, EU and Greek officials said on Sunday.

Bond Funds Losing $60 Billion Foreshadow Risk of Fed Exit

By Margaret Collins & Charles Stein - Jul 4, 2013 7:00 AM GMT+0300

Investors have pulled about $60 billion from U.S. bond funds since Federal Reserve Chairman Ben S. Bernanke rattled markets by outlining his plan to end the central bank’s unprecedented asset purchases.

The redemptions foreshadow what’s in store for asset managers when the central bank eventually scales back the $85 billion in monthly purchases of bonds and mortgage securities that investors have come to rely on. Bond funds had $28.1 billion in net redemptions in the week ended June 26, the Washington-based Investment Company Institute said yesterday.

China to grow 7.6 percent in second half; risks up: paper

SHANGHAI | Thu Jul 4, 2013 12:22am EDT

(Reuters) - China's economy is expected to grow 7.6 percent in the second half of 2013, but risks of bad local government loans, slowing growth of central government revenue, diminished export competitiveness and industrial capacity are growing, the official China Securities Journal reported on Thursday.

Economists have been cutting their forecasts for the world's second-largest economy following a string of weak data recently, with some predicting the government will not be able to meet it full-year target of 7.5 percent. China's economy expanded 7.8 percent last year, the slowest pace in 13 years.

Exclusive: Greece has three days to deliver or face consequences - EU officials

BRUSSELS/ATHENS | Tue Jul 2, 2013 6:04am EDT

(Reuters) - Greece has three days to reassure Europe and the International Monetary Fund it can deliver on conditions attached to its international bailout in order to receive the next tranche of aid, four euro zone officials said on Tuesday.

The lenders are unhappy with progress Greece has made towards reforming its public sector, a senior euro zone official involved in the negotiations said, while another said they might suspend an inspection visit they resumed on Monday.

Stakes raised as Greece, lenders resume talks on bailout loan

By Harry Papachristou

ATHENS | Mon Jul 1, 2013 4:13am EDT

(Reuters) - Greece and its international lenders resume talks on Monday to unlock 8.1 billion euros ($10.5 billion) of rescue loans after a two-week break during which the government almost collapsed over redundancies at state broadcaster ERT.

Prime Minister Antonis Samaras has said he expects the talks to conclude successfully, despite setbacks to the country's privatization program and delays in public sector reforms.

Greek gambling privatization of OPAP threatens to unravel

Thu Jun 27, 2013 2:52pm EDT

* Privatization of gambling company OPAP has stalled

* Opposing business groups haggle over sale terms

* Failure to complete deal would derail asset sale plan

ATHENS, June 27 (Reuters) - Conflicting interests between opposing business groups threaten to unravel the sale of Greek gambling company OPAP, the head of the country's privatization agency said on Thursday, risking delivery of a fatal blow to the country's asset sale program under its international bailout.

UPDATE 3-TAP to carry Azeri gas via Greece as Austria loses out

Wed Jun 26, 2013 11:49am EDT

* BP, Statoil lead development of Shah Deniz II gas field

* Plans call for flows to Europe from 2019

* Nabucco West pipeline not chosen, OMV says

* Official announcement awarding project to TAP expected Friday

* TAP project will cross Greece, Albania

By Georgina Prodhan and Karolin Schaps

VIENNA/LONDON, June 26 (Reuters) - The group developing Azerbaijan's vast gas reserves has chosen the Trans Adriatic Pipeline (TAP) via Greece to link to Europe, officials said on Wednesday, defeating the Nabucco West consortium which had backed a route to Austria.

Analysis : Bruised Greek government to limp along, toughen stance with lenders

By Harry Papachristou

ATHENS | Tue Jun 25, 2013 10:23am EDT

(Reuters) - Greece's weakened coalition government is expected to survive the departure of a junior partner for now but will be forced to resist any fresh demands from its foreign lenders to prevent its tiny parliamentary majority from crumbling.

A year after coming to power, Prime Minister Antonis Samaras suffered a heavy blow when his smallest coalition partner, the Democratic Left, quit the government last week to protest the abrupt closure of state broadcaster ERT.

Greek Bonds Tumble Amid Political Uncertainty

Greek Gaming Company Intralot Postpones Bond Sale

By ED BALLARD, TOMMY STUBBINGTON and SERENA RUFFONI

The Wall Street Journal

Greek government bond prices fell sharply in thin volumes Friday to their lowest level in two months amid renewed political uncertainty, with market jitters also forcing Greek gaming company Intralot to shelve a planned bond sale.

Markets already nervous about a potential unwinding of monetary stimulus by the U.S. Federal Reserve received another jolt Friday after Greece's junior coalition government partner said it will withdraw from the government's cabinet, after a deadlock over the shutdown of the state broadcaster.

Greece Faces Fresh Threats

By NEKTARIA STAMOULI And GABRIELE STEINHAUSER

The Wall Street Journal

Greece's shaky coalition government was hit Thursday with a double blow as talks over the shutdown of the state broadcasting company threatened to fracture the government and new worries over the financing of the country's bailout program emerged.

The breakdown in the talks sparked a threat from the junior partner in the three-party coalition to withdraw its support from the government, representing the coalition's gravest internal crisis to date.

Greece to avoid funding problems if it delivers on bailout program: IMF

WASHINGTON | Thu Jun 20, 2013 6:32pm EDT

(Reuters) - The International Monetary Fund on Thursday urged Greece to speedily deliver on its bailout program, adding that doing so would ensure the country encounters "no financing problems."

There is an ongoing review of the Greek bailout program, the IMF said on Thursday.

"If the review is concluded by the end of July, as expected, no financing problems will arise because the program is financed till end-July 2014," IMF spokesman Gerry Rice said in a brief statement.

Greece’s Coalition Government Teeters Over Broadcaster Impasse

By Marcus Bensasson, Tom Stoukas & Paul Tugwell - Jun 21, 2013 3:28 AM GMT+0300

Greek Prime Minister Antonis Samaras may be set to lose a coalition partner over his closure of the country’s state broadcaster ERT, heightening concern about his government’s stability.

A one-hour meeting late yesterday between Samaras, Pasok party leader Evangelos Venizelos and Democratic Left’s Fotis Kouvelis failed to break a deadlock over ERT, closed June 11 without the coalition partners’ consent. Kouvelis insisted on the broadcaster reopening with all of ERT’s 2,600 employees, while Venizelos accepted a proposal by Samaras for fewer workers, according to statements by the three leaders after the meeting.

EMERGING MARKETS-Shares and bonds rocked by U.S. Fed comments

By Carolyn Cohn and Sujata Rao

LONDON, June 20 | Thu Jun 20, 2013 6:17am EDT

(Reuters) - Stocks and bond prices plunged and debt insurance costs soared in a general flight from emerging markets on Thursday, after the U.S. Federal Reserve laid out a timetable for turning off the taps on its $85 billion-a-month bond-buying programme.

The MSCI emerging stock index was down by over 3.3 percent, hitting its lowest level since July 2012 and heading for its biggest one-day fall since Oct 2011, with weekly losses of more than 6 percent, as U.S. 10-year Treasury yields surged to 15-month highs.

Euro zone wrangling may cost Greece 2 bln euros in 2013: sources

By Martin Santa and Lefteris Papadimas

BRUSSELS/ATHENS | Wed Jun 19, 2013 1:00pm EDT

(Reuters) - European foot-dragging could leave Greece short of 2.0 billion euros ($2.7 billion) this year as some euro zone creditors are reluctant to roll over their Greek debt holdings, Greek and euro zone sources involved in the matter told Reuters.

Euro Becomes the Port in a Storm

As Central Banks Mull Pullback of Easy Money, Investors Turn to Relatively Stable European Currency

By MATTHEW WALTER and NICOLE HONG

The Wall Street Journal

The euro is emerging as an unlikely oasis in the latest bout of market turmoil.

Assets ranging from Japanese stocks to emerging-market bonds to U.S. Treasurys have slumped this spring, as investors brace for the possible pullback from easy-money policies by the world's major central banks. But the euro has largely avoided the volatile trading that has whipsawed other currencies, including the dollar and the Japanese yen, gaining about 4% against the greenback over the past four weeks to trade late Friday at $1.3345, near a four-month high.

Greek PM offers to reopen state broadcaster-govt source

ATHENS, June 17 | Mon Jun 17, 2013 1:59pm EDT

(Reuters) - Greece's prime minister has offered to quickly restart state broadcaster ERT under temporary management, a government official said on Monday, in a bid to defuse a political crisis and avoid snaps elections.