The IMF's blunt assessment

Aug 1st 2013, 14:09 by K.H. | ATHENS

Charlemagne

European politics

The Economist

WITH Greece enjoying the best year for tourism since its six-year recession began, it has become easier to believe in official forecasts of a mild recovery next year. But the green shoots of optimism may soon fade if European leaders are unwilling to plug a widening gap in bailout funding for Athens over the next two years and help make its debt burden sustainable by writing off a chunk of bail-out loans.

Lagarde counting on Europeans to keep promises toward Greece

The Washington Post

By Katerina Sokou, Friday, August 2, 4:18 PM

Christine Lagarde, the head of the International Monetary Fund, said Thursday that she counted on euro-zone countries to support the Greek effort to bring down its debt to sustainable levels.

Talking to reporters in Washington, Lagarde said the Europeans have promised to “consider any additional measures and assistance needed” as long as that Greece delivers on its commitments.

UPDATE 1-IMF approves $2.3 billion aid for Greece

Mon Jul 29, 2013 4:40pm EDT

(Reuters) - The International Monetary Fund on Monday approved a further 1.7 billion euros ($2.3 billion) in funds for Greece's bailout program after completing the fourth review of the cash-strapped euro zone state.

Greece last week adopted the last piece of legislation its international lenders required to release the next batch of rescue loans, after two months of wrangling over unpopular measures to overhaul the economy. The total funds from the IMF, the European Commission and the European Central Bank comprise 5.8 billion euros.

U.S. Treasury Secretary Lew urges Greece to stick with reforms

ATHENS | Sun Jul 21, 2013 11:15am EDT

(Reuters) - U.S. Treasury Secretary Jack Lew urged Greece on Sunday to persevere with tough economic reforms during a one-day trip to Athens designed to demonstrate Washington's support for the crisis-plagued country.

Detroit, the New Greece

The New York Times

July 21, 2013

By PAUL KRUGMAN

…, the truth was that Greece was a very special case, holding few if any lessons for wider economic policy…

Greek PM unveils tax cut ahead of vote on job losses

By Karolina Tagaris

ATHENS | Wed Jul 17, 2013 10:17am EDT

(Reuters) - Prime Minister Antonis Samaras announced Greece's first major tax cut since its crisis began nearly four years ago, highlighting a hard-won concession just hours before lawmakers vote on a bill to eliminate thousands of public sector jobs.

U.S.'s Lew to visit Greece, discuss its reforms

(Reuters) - U.S. Treasury Secretary Jack Lew will visit Greece on Sunday to discuss the euro zone country's economic reforms and Europe's policies to support recovery, the Treasury said on Wednesday.

Lew will visit Athens after attending the Group of 20 gathering of finance ministers and central bankers in Moscow this weekend. Greece's debt crisis has roiled the euro zone and raised doubts about the currency bloc's future.

The Surprising Relationship Between Corruption and Economic Growth

Posted By Park MacDougald   Tuesday, July 16, 2013 - 7:45 PM

Foreign Policy

Another day, another ballooning corruption scandal in southern Europe. On Monday, the former treasurer of Spain's ruling center-right Popular Party (PP), Luis Bárcenas, admitted in court to authoring handwritten ledgers detailing the secret flow of cash from private firms to top-level officials in the PP. Bárcenas also alleged, after months of speculation in the media, that Spanish Prime Minister Mariano Rajoy accepted regular payments from the illegal slush fund.

Greece privatisation: Myth or reality?

BBC

15 July 2013 Last updated at 23:17 GMT

By Nigel Cassidy

Business correspondent, BBC News, Athens

Visit any one of the Greek state's Opap betting shops and it's pretty hard to fathom quite what is going on.

Groups of mainly men who can probably ill afford the price of a lottery ticket sit around staring at electronic screens showing grids of random figures, all hoping against hope that their numbers will come up.

It's a fine metaphor for Greece's wider - and so far wildly unsuccessful - drive to raise billions of euros to help offset the country's punishing debt repayments.

Parliament Votes to Indict Ex-Official in Greece

July 15, 2013

By NIKI KITSANTONIS

ATHENS — Greek lawmakers voted early Tuesday in favor of indicting former Finance Minister George Papaconstantinou over the way he handled a list of more than 2,000 Greeks with Swiss bank accounts, a possible source of much-needed tax revenue that was never exploited by the authorities.

In a secret ballot that followed a contentious debate, a majority of lawmakers in Greece’s 300-seat Parliament said that Mr. Papaconstantinou should stand trial on three charges: breach of trust, tampering with an official document and breach of duty.

UPDATE 2-Greece picks Eurobank to buy Postbank ahead of mid-July deadline

Sat Jul 13, 2013 7:29pm EDT

By George Georgiopoulos

(Reuters) - Greece's bank rescue fund picked Eurobank to buy New Hellenic Postbank as part of consolidation in the sector and to meet a condition for the next tranche of Greece's bailout, it said after a board meeting on Saturday.

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.