Greece must choose between 2 catastrophes

The Guardian

LARRY ELLIOTT, THE GUARDIAN

MAY 17, 2015, 10:03 AM

Yanis Varoufakis rues the day when Greece joined the euro.

The Greek finance minister says his country would be better off if it was still using the drachma. Deep down, he says, all 18 countries using the single currency wish that the idea had been strangled at birth but understand that once you are in you don't get out without a catastrophe.

All of that is true, and explains why Greece is involved in a game of chicken with all the other players in this drama: the International Monetary Fund, the European commission, the European Central Bank and the German government.

Greek Endgame Nears for Tsipras as Bank Collateral Hits Buffers

Bloomberg

by Nikos ChrysolorasVassilis Karamanis

12:00 AM EEST

May 18, 2015

Greek banks are running short on the collateral they need to stay alive, a crisis that could help force Prime Minister Alexis Tsipras’s hand after weeks of brinkmanship with creditors.

As deposits flee the financial system, lenders use collateral parked at the Greek central bank to tap more and more emergency liquidity every week. In a worst-case scenario, that lifeline will be maxed out within three weeks, pushing banks toward insolvency, some economists say.

Greece Remains Defiant as It Seeks Deal With Creditors This Week

by Paul TugwellRebecca Christie

4:09 PM EEST

May 17, 2015

Bloomberg

Greece’s government said it won’t back down on election pledges to end austerity even while seeking to agree on a deal with creditors as soon as this week to unblock financing and avert a default.

“We’re striving for a mutually beneficial agreement by Friday,” Nikos Filis, spokesman for the parliamentary group of Prime Minister Alexis Tsipras’s Syriza party said Sunday in comments broadcast on Mega TV. “Our mandate from the Greek people is to reach an agreement where we stay in the euro area without harsh austerity measures,” he said, adding that “tough negotiations” will take place before a summit meeting of European Union leaders in Riga, Latvia, on May 21-22.

Germany urges Greece to undertake reforms to unlock funds

Sun May 17, 2015 9:09am EDT

BERLIN | BY MICHELLE MARTIN

 Reuters

German politicians kept up the pressure on Greece over the weekend to implement reforms, with Economy Minister Sigmar Gabriel warning Athens in an interview that a third aid package would not be on the cards unless the Greeks made some changes.

Greece is fast running out of cash and talks with its lenders have been deadlocked over their demands for Greece to implement reforms, including pension cuts and labor market liberalization.

Greek Prime Minister Rejects Further Austerity or Labor Changes

The New York Times

By NIKI KITSANTONIS

MAY 15, 2015

ATHENS — Greece’s prime minister, Alexis Tsipras, said in a speech on Friday that his government wanted a deal with the country’s creditors but that it would not enforce additional austerity measures, like further pension cuts.

Mr. Tsipras said Greece wanted a “unified agreement” that would restructure its huge debt, a thorny issue not on the agenda of the current talks.

Greece Aid Accord Looks Elusive as Tsipras Sticks to Red Lines

Bloomberg

by Paul TugwellChristos Ziotis

2:16 PM EEST

May 16, 2015

An agreement between Greece and its international creditors to unblock financing and avert a default looked elusive after Greek Prime Minister Alexis Tsipras said he won’t strike a deal at any cost.

“There’s no doubt that an agreement must be reached,” Tsipras said late Friday at a conference in Athens. “But those who think that the Greek side’s resistance can be tested or that its red lines will fade as time passes, would do well to forget it.”

Greece offers privatisation concession as Germany stays tough

Thu May 14, 2015 6:04pm BST Related: BUSINESS, IMF

ATHENS | BY RENEE MALTEZOU AND LEFTERIS PAPADIMAS

Greece on Thursday offered a concession to its international lenders by pushing ahead with the sale of its biggest port, Piraeus.

Greece has asked three firms to submit bids for a majority stake in the port, a senior privatisation official told Reuters, unblocking a major sale of a public asset as the EU and the IMF demand economic reforms from Athens.

Despite the conciliatory move, Germany's Bundesbank showed no sign of easing off on its hardline stance towards Greece.

Why Syriza Will Blink

Project Syndicate

Anatole Kaletsky

MAY 14, 2015 6

LONDON – Once again, Greece seems to have slipped the financial noose. By drawing on its holdings in an International Monetary Fund reserve account, it was able to repay €750 million ($851 million) – ironically to the IMF itself – just as the payment was falling due.

This brinkmanship is no accident. Since coming to power in January, the Greek government, led by Prime Minister Alexis Tsipras’s Syriza party, has believed that the threat of default – and thus of a financial crisis that might break up the euro – provides negotiating leverage to offset Greece’s lack of economic and political power. Months later, Tsipras and his finance minister, Yanis Varoufakis, an academic expert in game theory, still seem committed to this view, despite the lack of any evidence to support it.

Opinion: Why stock investors shouldn’t worry if Greece exits eurozone

MARK HULBERT

Published: May 13, 2015 5:01 a.m. ET

Market Watch

CHAPEL HILL. N.C. (MarketWatch) — Investors are needlessly worrying about the prospect of Greece defaulting on its debt and withdrawing from the eurozone.

Consider: If a Greek exit from the euro a “Grexit,” as this possibility is being called — were really a cause for worry, then why aren’t the recent British elections causing a huge panic? After all, the Tory Party’s resounding victory, along with its anti-European Union stance, is leading some to speculate that the U.K. could leave the European Union as soon as next year — a so-called Brexit.

Euro Pares Gains, Stocks Rise

Germany’s DAX, which is stocked with exporters, jumped as the euro slipped from its high

By JOSIE COX

Updated May 14, 2015 1:18 p.m. ET

The Wall Street Journal

The euro pared gains against the dollar in late trade Thursday, sparking a stock rally led by Germany’s DAX index, which is packed with exporters.

The Stoxx Europe 600 ended the day 0.6% higher, led by a more than 1.8% gain on Germany’s DAX and a 1.4% gain on France’s CAC.

The euro weakened slightly after European Central Bank President Mario Draghi said that the ECB’s vast stimulus efforts will remain in place “as long as needed” until officials are confident they will meet their inflation objective on a sustained basis. The ECB’s bond-buying program has sent the euro sharply lower since it was first announced in January.

The euro was trading around 0.2% higher at $1.138, but was down from $1.145 earlier in the day—its highest level since late February.

A stronger euro is generally seen as bad for companies in the eurozone that generate a big chunk of their revenue overseas. The dollar enjoyed a stellar start to the year but has reversed direction in recent weeks amid a number of disappointing U.S. data releases.

“There is no denying the performance of the U.S. economy is falling well short of expectations” and is pushing back bets for when the Federal Reservewill raise rates, which is weighing on the dollar, said Lee Hardman, an economist at Bank of Tokyo-Mitsubishi UFJ.

BNP Paribas strategists also said the dollar weakness was likely to continue in the near term but added they broadly expect the buck to recover as the Fed gets closer to raising rates.

Eurozone bond markets were mostly stable Thursday after a selloff in recent weeks.

The yield on the German 10-year government bond, or Bund, edged slightly lower on the day to trade at about 0.70%, having risen from its all-time low of 0.05% in late April. Yields rise as bond prices fall.

“The bond rout isn’t going away for the summer and will weigh on all asset classes,” said Nick Lawson, a senior trader at Deutsche Bank.

Peter Chatwell, a rates strategist at Mizuho, said investors were unlikely to start buying bonds again in a big way until the current patch of volatility subsides. “They are on the sidelines waiting for the market to calm down,” he said.

In commodity markets, Brent crude was around 1% lower in late trade at $66.65 a barrel. Gold was up 0.3% at $1,222 a troy ounce.

Write to Josie Cox at josie.cox@wsj.com

This may be a greater risk for Greece than default

CNBC

Dhara Ranasinghe

Greece's anti-austerity government may think it's being squeezed by its international lenders but that could be nothing compared to the pressure it faces from the country's voters, experts warn.

The left-wing Syriza-led government under Prime Minister Alexis Tsipras has said it would not rush into a referendum or snap election to secure public support for the unpalatable reforms it may need to introduce to secure more funds. But analysts say neither can be ruled out as Athens desperately tries to avert a bankruptcy.

Greece's Varoufakis says debt swap fills Draghi's 'soul with fear'

 May 14, 2015 10:10am EDT

ATHENS

Reuters

Repayment of what Greece owes to the European Central Bank should be pushed into the future, but it is not an option because it fills ECB chief Mario Draghi's "soul with fear", Greece's finance minister said on Thursday.

Yanis Varoufakis said Draghi, president of the European Central Bank, cannot risk irritating Germany with such a debt swap because of Berlin's objection to his bond-buying program.

Το καθήκον των δημοσιογράφων

ΠΟΛΙΤΙΚΗ 13.05.2015 : 12:46

ΠΑΣΧΟΣ ΜΑΝΔΡΑΒΕΛΗΣ

ΕΦ. ΚΑΘΗΜΕΡΙΝΗ

Και για να έχουμε το καλό ρώτημα στη φιλοκυβερνητική «Εφημερίδα των Συντακτών»: πότε ακριβώς έπρεπε να μάθουν οι Ελληνες ότι «φυγή καταθέσεων που κινήθηκε σε ομόλογα του εξωτερικού ή προς τα “στρώματα” ανέρχεται σε 30 με 35 δισ.»; Πριν χρεοκοπήσει η χώρα ή μετά; Δεν όφειλε να ενημερώσει η Τράπεζα της Ελλάδος έναν δημοσιογράφο, που έθεσε το ερώτημα, ότι «λείπουν 20 δισ. από τα χαρτονομίσματα που είναι σε κυκλοφορία»;

Eurozone Economy Improves, but Finland and Greece Stumble

By DAVID JOLLYMAY 13, 2015

The New York Times 

PARIS — The eurozone economy grew modestly in the first quarter, an official report showed on Wednesday, as a surprisingly strong showing in France helped to compensate for a slowdown in Germany.

The economies of Finland and Greece, however, contracted for a second straight quarter, meeting the technical definition of a recession.

Greece Is Back In Recession; This Does Not Bode Well For A Debt Deal

MAY 13, 2015 @ 1:05 PM

Forbes

Tim Worstall

CONTRIBUTOR

We’ve the GDP figures for the various eurozone countries out today and Greece is officially and definitively back in recession. This does not bode well for the ability of Greece and the troika to come to a debt deal as recessionary times mean that the Greeks will find it near impossible to run the primary budget surplus that any deal would be predicated upon. There is a contrary view which is that the Eurogroup will agree that a surplus isn’t possible in such circumstances but that’s almost certainly not the way to bet.

Greece plays down referendum option, economy stutters

ATHENS | BY ANGELIKI KOUTANTOU AND RENEE MALTEZOU

Wed May 13, 2015 1:23pm EDT Related: GREECE

Reuters

Greece's government on Wednesday ruled out rushing to a referendum to secure public support for unpopular reforms, opting instead to make a final push for a compromise with lenders by the end of the month.

Running out of both cash and options to pursue, Prime Minister Alexis Tsipras was to preside over his third cabinet meeting in four days later on Wednesday to seek a way out of an impasse in talks with lenders who refuse to dole out more aid.

Τα στοιχεία που έδωσε ο κ Στουρνάρας για τις πρώτες 100 ημέρες της νέας κυβέρνησης ΣΥΡΙΖΑ

Συγκεκριμένα στην επιστολή με ημερομηνία 6 Μαίου και ώρα 2.12μ.μ. που έφυγε από το Γραφείου τύπου του Γ. Στουρνάρα με παραλήπτη γνωστό δημοσιογράφο υπό τον τίτλο «ο λογαριασμός των 100 ημερών» αναφέρεται ότι:

-Η φυγή καταθέσεων που κινήθηκε σε ομόλογα του εξωτερικού ή προς τα στρώματα ανέρχεται σε 30 με 35 δισ.

-20 με 30 δισ. η πτώση αξιών προς εισηγμένες και μη

-10 δισ. τα ρέπος

-3 δισ. οι παγωμένες πιστώσεις του ΕΣΠΑ. Έπρεπε να έχουμε πάρει 4 δισ. και πήραμε μόλις 1.

-20 δισ. λείπουν από τα χαρτονομίσματα σε κυκλοφορία

-Δεν μπορεί να υπολογιστεί η απώλεια σε χρεόγραφα που έχουν ο ξένοι επενδυτές. Έχουν 70 δισ. στα χέρια τους.
-Απαξίωση των ακινήτων

-3 δισ. λιγότερα στην αγορά από τη μη εξόφληση των υποχρεώσεων του δημοσίου προς ιδιώτες

-Στη ζημιά πρέπει να προστεθεί η στάση πληρωμών των ιδιωτών προς τις τράπεζες που αύξησαν τα κόκκινα δάνεια. Οι τράπεζες απέκτησαν επιπλέον πρόβλημα και ίσως χρειαστούν επιπλέον ανακεφαλαιοποίηση

Greece Completes Latest IMF Loan Repayment

Country drew on its holdings of an International Monetary Fund reserve currency

The Wall Street Journal

By MARCUS WALKER and  STELIOS BOURAS

Updated May 12, 2015 2:13 p.m. ET

23 COMMENTS

ATHENS—Greece drew on its holdings of an International Monetary Fund reserve currency to make a loan repayment of around €750 million ($837 million) to the IMF, an unusual move that buys the country a few more weeks to reach a deal with creditors on fresh financing.

Greece Dodges Economic Bullet With Progress Toward Deal

Bloomberg

by James G NeugerStephanie BodoniKarl Stagno Navarra

8:32 PM EEST

May 11, 2015

Greece handed the European Central Bank an excuse to maintain the life support for its financial system by persuading its skeptical German-led creditors it’s serious about delivering the policies needed to escape a default.

Less than three weeks after a Greek aid meeting broke up in taunts and acrimony, Finance Minister Yanis Varoufakis assured euro-area governments that his country is aiming to strike a bargain to win the final installments of its 240 billion-euro ($268 billion) aid program.

“We are making faster progress,” Dutch Finance Minister Jeroen Dijsselbloem told reporters in Brussels on Monday after leading a meeting of euro ministers. “I’m not satisfied but just a bit more optimistic.”

Exclusive: Greece tapped its emergency IMF reserves to pay IMF debt - sources

ATHENS | BY LEFTERIS PAPADIMAS AND GEORGE GEORGIOPOULOS

Tue May 12, 2015 8:26am EDT Related: WORLD, IMF

reuters

Greece emptied an emergency IMF holding account to repay 750 million euros ($839 million) due to the international lender, a Greek central bank official said, avoiding default but underscoring the dire state of the country's finances.

With Athens close to running out of cash and a deal with its international creditors still elusive, there had been doubts about whether the leftist-led government would pay the IMF or opt to save cash to pay salaries and pensions later this month.