Reasons for change? The newspaper, citing government sources, ensures that approaching deadline for payment to the IMF – ends at 23 hours – and pressure caused by the closure of banks have led some government officials to advocate that one should accept the proposal of Juncker.
Yes or no?
The Greek Government has not yet responded to the last offer made by the President of the European Commission to reach an “agreement last time “on financial assistance to Greece, said today a spokesman of the European Commission.
Margaritis Schinas confirmed in the daily press conference of the Community executive, which, following a call from the Prime Minister Greek President to the Commission on Monday evening, Juncker, after consulting the President of the Eurogroup, Jeroen Dijsselbloem, explained Alexis Tsipras what form could be reached that last-minute compromise could be considered by the Eurogroup in an emergency meeting.
According to the spokesperson, and despite having been asked for a response by midnight Monday, just has not happened so far, “and the time is now very short” for even to reach an agreement before the end of the current assistance program, which ends today.
“The European program of financial assistance expires today at midnight,” recalled more than once the spokesman Commission, who confirmed are still ongoing contacts between Brussels and Athens.
What do you suggest the President of the European Commission?
Jean-Claude Juncker has proposed to Greek Prime Minister a last-minute agreement, the creditors would accept “close” if Athens commit today to accept the latest proposal and campaign for “yes” in the referendum.
According to Community source without need the exact terms of the proposal, the Greek prime minister, Alexis Tsipras, is aware of the proposal and was informed that today should send a letter to European Commission President, Jean-Claude Juncker, the chairman of the Eurogroup Jeroen Dijsselbloem, the German Chancellor Angela Merkel and French President François Hollande, “to accept the proposal Saturday the three institutions” and furthermore “would have to commit to a ‘campaign for the yes on this basis.”
This answer would have to arrive during the day, in which the rescue program ends, the time of the Eurogroup emergency meeting.
The proposal of creditors to release money to Athens is last Saturday and includes – among others -. increases in VAT on various products and services, reductions in pensions, gradual end to early retirement and increasing the pensionable age
The theme of pensions was the most tension created between lenders and Athens, and the problem in this case is mainly the so-called ‘Ekas’, the solidarity surcharge for pensioners, lenders do not consider a pension, because it depends completely discounts made and want it to be deleted.
Since the debt restructuring, the government mainly supported by left-wing party Syriza has claimed, not part of the proposed package.
Community sources said lenders did know the Greek executive who would be available to discuss a debt relief, which represents about 180% of gross domestic product (GDP), almost double the wealth produced by Greece, but only when negotiating a third bailout of the country.
The promises of Tsipras on television
Prime Minister assured last night that will respect the outcome of Sunday’s vote and leave government admits. Tsipras says it is impossible to pay today to the IMF to EUR 1.5 billion.
“The decision of the Greek people will be respected and implemented.” The promise was left by Alexis Tsipras, assuming that it dismiss the case Sunday’s referendum dictate the victory of yes to the proposal of the creditors submitted to the government which provided for increased austerity measures, such as the rise in VAT. In an interview to a Greek television, Tsipras said he was not “a prime minister who remains in office come rain or shine.”
The leader of Syriza, which sees the referendum as a way to continue negotiations – “our goal is to be better armed in the further negotiations” – believes that the stronger the rejection of the proposal, the stronger will be in Greece for the next talks
The prime. Greek Minister was also adamant about the impossibility of paying the country today 1.5 billion to the IMF. “It is possible that lenders expect us to pay the IMF imposed when choking banks?” He asked, adding that “from the moment they decide to raise the choking will be paid.” With banks closed until July 6, Tsipras admits that “the scenario is not ideal,” but stressed that Greece “will survive” with or without external aid program. “The Greek people saw that the last five months did what we could to reach an agreement,” he said, stressing he does not believe that lenders want Greece to leave the euro zone.
ECB charges : it is the fault of the Greeks
The European Central Bank does not exclude the Greek exit from the euro zone and insists that occur will be the responsibility of the Greek Government, which decided to end the negotiations, he said Benoît Coueuré, ECB board member.
“The Greek exit from the euro zone, which was a theoretical hypothesis, can unfortunately no longer be ruled out,” he said in an interview published today by the French business daily Le Echos .
Coeuré, adding that “is the result of the Greek government”, insisted that both the ECB and the European authorities want to keep Greece in the single currency and that, therefore, made their proposal in Last week, it specifically lowered the requirements in terms of fiscal surplus.
“The decision to discontinue the negotiations was made by the Greek authorities. Surprised us because we were finished quite intense and fruitful exchanges, “he said.
Coueuré proved to be convinced that the Greeks vote” yes “in the referendum of 05 July,” the eurozone authorities will find a way “to start up an aid program, although the current expires today.
The head of the ECB acknowledged that the executive Alexis Tsipras had made the restructuring of Greek debt a priority, but claimed that since February 20 the Eurogroup had warned that this matter would only be debated in a second phase and before Athens had to adopt “a credible reform program”.
Regarding the possible consequences of a Greek exit the single currency, Coeuré admitted that the market turmoil on Monday shows that there was a “surprise effect” because until Wednesday did not admit the rupture of negotiations.
However, Coeuré found that the reaction was “relatively moderate”, demonstrating “the extent to which Greece is a unique case”, “the euro zone resilience to external shocks” and that “safety nets put in place in recent years have fulfilled their role.”
In any case, Coeuré said it was necessary to maintain “vigilance”.
“If there are risks we are willing to use the tools at our disposal” as the massive program of buying bonds and even “new instruments as part of our mandate,” he said.
The Greek response . An injunction
Greece does not rule out the possibility of recourse to justice to prevent their exit from the euro zone in the event of a settlement fail. “The Greek government will make use of all legal rights at their disposal,” the British newspaper Daily Telegraph, citing Yanis Varoufakis .
“We are advising us and we will certainly consider the possibility of an injunction from the European Court of Justice. The EU treaties do not provide [a] exit from the euro and refuse to accept it. Our belonging [to the area] is not negotiable, “he said.
Greece can pay the IMF? Maybe . without agreement
Athens will not repay the loan of 1,600 million euros to the International Monetary Fund (IMF), which expires today, unless it is found a last-minute solution to meet this payment and avoid getting into “default”.
The Deputy Minister of Finance of Greece, Nadia Valavani, said today in a statement to state television that the payment would still be possible if Greece could the 1,800 million euros of income from debt securities that are Greek 2014 in the hands of the European Central Bank (ECB).
Valavani insisted that to make the repayment would not need a new agreement with the institutions (European Commission, ECB and IMF) as part of the current bailout program.
Up to 18:00 in Washington (00:00 in Lisbon), Greece can make this repayment grouping three June payments, otherwise will default in relation to the IMF.
If Greece does not pay today, you start a processing process, which, as Valavani recalled, can last a month until the default is declared.
In this regard, the French finance minister, Michel Sapin, considered that the non-payment of Greece to the IMF today would have “major consequences”.
Once it is confirmed that Greece did not pay, it is expected that the director general of the IMF, Christine Lagarde inform the Executive Board of the institution, possibly the same day.
A crucial day for the liquidity of Greece will again be Wednesday, when it is expected that the ECB Governing Council decides to maintain the emergency credit provision to Greek banks.
The ECB has kept liquidity injections to ensure the solvency of banks, but did not increase the ‘ceiling’ of claims of around EUR 90,000 million, which after the high of last week deposits outputs difficult the situation of financial institutions.
The Greek prime minister, Alexis Tsipras blamed the Eurogroup to have triggered the ECB’s decision not to increase lending to not accept the request Greece to extend the prolongation of the rescue, in order to carry out calmly the referendum next Sunday.
According to the Greek Prime Minister, this decision of the ECB triggered the imposition by the government of banking restrictions in last Monday.
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