http://www.athensnews.gr/portal/1/56357
http://www.reuters.com/article/2012/06/19/us-g2o-brics-statement-idUSBRE85I03N20120619
( Brics tie contributions to IMF rescue fund to implementation of IMF reforms on voting power and reform of quota shares - ignored by the US and Europe since 2010 )
http://www.guardian.co.uk/business/2012/jun/19/eurozone-crisis-live-greece-poised-to-form-coalition
( while moving to 7.19 , Spain ten year has come back down in yield about 9 bps at the time of this post - has the ECB finally bought spanish bonds with its SMP program ? )
and from The Telegraph blog.....
http://www.telegraph.co.uk/finance/debt-crisis-live/9340387/G20-Summit-and-debt-crisis-live.html
The presence of Kouvelis in an ND-led coalition would give not only an additional 17 members of parliament but anti-bailout credibility with the Greek people. The veteran Kouvelis wants to do the right thing – his pre-election speeches stressed the need for ‘national stability’.
While Antonis Samaras, leader of Greece's New Democracy party, scrambled to forge a coalition with Pasok, his officials admitted their first task would be to renegotiate the €130bn (£104.4bn) bail-out agreed in May.
2.25pm What's going on in the coalition negotiations? In this update, political reporter Costas Papachlimintzossays that the Democratic Left is raising the issue of who should lead the proposed government but that New Democracy is insisting on Samaras:
The Democratic Left is again raising the issue of who will lead the coalition government. “The issue remains open and will be discussed in the final phase of the consultation,” Nikos Tsoukalis, a Democratic Left MP, said in a radio interview.
Another party MP, Odysseas Voudouris, said that Antonis Samaras, who signed the second memorandum,should not be prime minister. However, New Democracy sources told the Athens News that the leader of the first party must and will become the prime minister.
Mega TV has reported that a meeting between Antonis Samaras, Evangelos Venizelos and Fotis Kouvelis may take place later today. There has been no official announcement from any of the three parties yet.
2pm Just in from Brussels: the European Commission is insisting that the memorandum plan cannot not be torn up. It says that while it wants to work with a new government to push through reforms and revive the economy, that there would be no new agreement on the terms of the bailout package.
Amadeu Altafaj, spokesman for European Commissioner for Economic and Monetary Affairs Olli Rehn,
told a regular briefing:
We just decided on a second programme recently so nobody is talking about a new memorandum of understanding. We are talking about ensuring that Greece gets a government and that this government takesfull ownership of the programme and implements it to put the country back on track.
Altafaj added that as soon as the new government was formed, the troika would go to Athens discuss with the authorities the best means of implementing "the programme agreed upon by the Greek government with its partners".
1.30pm The confusion about when Fotis Kouvelis expects a government is due to the Democratic Leader himself. After his televised statement following his meeting with Venizelos, Kouvelis told journalists:
There will be a government, but I don't know if it will be formed by tonight. I believe we will have reached an agreement by the end of the week. (Reuters)
12.55pm There seems to be some confusion out there as to when Fotis Kouvelis expects a government. Here's what he said and how it has been reported. At his press conference, Kouvelis said he expected a coalition in "οι επόμενες ώρες, η επόμενη μέρα", which translates literally as in "the next hours, the next day". According to theDemocratic Left transcript of his comments, he referred to "οι επόμενες ώρες, μέρες", which translates literally as "the next hours, days". Associated Press says Kouvelis said "within hours", while Reuters has gone for "by the end of the week".
But as journalist @dajieblack has pointed out, Kouvelis said both: "the next hours, the next day" at the press conference and "end of the week" an hour later as he left parliament.
Take your pick!
11.45am Here's more from the Venizelos-Kouvelis meeting: Fotis Kouvelis of the Democratic Left stressed the need for a convergence on a government programme and also raised the issue of the "reliability" of the members of the government.
Our premise remains that the country should get a government with a specific programme, both for the internal affairs but also for the political renegotiation of the memorandum.
We are proposing a programmatic framework. I have raised the issue of the reliability of individuals. I expect very specific answers from Mr Samaras.
The process must be speeded up. The country must have a government soon. In the next few hours, it could be possible to move ahead if there is convergence on these points.
11.15am The meeting between Venizelos and Kouvelis has ended.
Kouvelis was the first to speak to waiting journalists. He expressed optimism that a government could be formed today, providing a framework for government as well as the issue of who will serve in it can be agreed.
Echoing that optimism, Venizelos said that it was imperative to form a "national negotiating team" which could have non-government figures on board. Some are suggesting that this implies that Syriza be part of this team but not of the government. But it could also mean that experts join it so as not to leave the job of negotiating to politicians alone. His exact words were:
"Forces not participating in government should be involved in the national negotiating team."
10.25am Some news from the markets. In Singapore, it seems the euphoria among investors that followed on from Sunday's election victory for New Democracy was only a flash in the pan as concerns rise about Spain. "The Greek election result gave the market a brief respite, that was it, now investors are clearly focused on Spanish government bond yields," Michael Creed, an economist at National Australia Bank, told Reuters.
and.....
http://www.reuters.com/article/2012/06/19/us-g2o-brics-statement-idUSBRE85I03N20120619
( Brics tie contributions to IMF rescue fund to implementation of IMF reforms on voting power and reform of quota shares - ignored by the US and Europe since 2010 )
(Reuters) - China on Monday offered $43 billion to the IMF's crisis-fighting reserves, joining other major emerging markets in pledging new funds to shore up the global financial system while demanding reforms to give the developing world more clout at the IMF.
China's contribution, confirmed by a Group of 20 official, follows Russia's pledge of $10 billion and is in line with a promise to supply the International Monetary Fund with extra firepower to help cope with the fallout from Europe's debt crisis.
The leaders of Brazil, Russia, India, China and South Africa, meeting before a Group of 20 summit in Mexico, said they "agreed to enhance their own contributions to the IMF."
They sought to tie the funds to long-delayed reforms that would give the developing world more say at the Washington-based Fund.
"These new contributions are being made in anticipation that all the reforms agreed upon in 2010 will be fully implemented in a timely manner, including a comprehensive reform of voting power and reform of quota shares," the BRICS leaders said in a joint statement.
G20 finance ministers agreed in April to give the IMF $430 billion in new resources, but the breakdown of contributions has not been formally announced. The bulk of the extra IMF money will come from Europe, while the United States, which would need approval from a deeply split Congress, is not contributing.
In their public remarks in Los Cabos, Chinese officials declined to discuss sums and stressed the need to implement IMF quota reforms agreed in 2010.
The five BRICS nations represent 43 percent of the world's population and about 18 percent of global economic output. They have about $4 trillion in combined reserves, with the lion's share held by export powerhouse China.
Emerging economies have long demanded more say at institutions like the IMF to reflect their growing clout. Their frustrations have grown with the likely delay in implementing the 2010 deal that would boost their voting power and make China the third-largest voting member of the IMF.
( while moving to 7.19 , Spain ten year has come back down in yield about 9 bps at the time of this post - has the ECB finally bought spanish bonds with its SMP program ? )
Spanish yields have reacted to news of the delay to the banking audit (see 9.10am) accordingly. The yield on Spanish 10-year debt is pushing up towards yesterday's highs, currently at 7.19%.
As Sony Kapoor of think-tank Re-Define notes, it's not exactly the way to build confidence...
The full audit of the Spanish banks has been delayed from July to September, fuelling fears that the banks may need more than originally thought (see 8.25am). Spain's central bank has apparently agreed the delay with the government, the IMF and the ECB. Accendo Markets' head of research wonders what's keeping them.
The first phase of the report is still expected this week. It was scheduled for Thursday and there is some speculation it may come today.
and from The Telegraph blog.....
http://www.telegraph.co.uk/finance/debt-crisis-live/9340387/G20-Summit-and-debt-crisis-live.html
12.27 Democratic Left MP Odysseas Voudouris says Samaras should not be PM. Fellow Democratic Left MP colleague Nikos Tsoukalis says question of who will be PM in new government "remains open".
Linda Yueh at Bloomberg:
Nick Malkoutzis, deputy editor of Greece's Kathimerini:
11.49 Eurogroup chief Jean-Claude Juncker has admitted that the Greek austerity programme could be stretched over a longer period, according to Austrian state radio ORF.
11.43 ING says Spain may need a €250bn bailout, which would be "too large" for the EFSF.
11.26 The EU Commission says it is not talking about any new memorandum of understanding for Greece and wants to ensure the country makes its reforms.
10.36 German Savings Banks Association rejects using savings to rescue foreign banks.
10.02 Unnamed EU official says union expects to revise bailout terms with Greece.
Meanwhile, German economic sentiment plunges 27.7 to -16.9. Figures blamed on worsening Spanish bank sector and insecurity over Greek elections.
09.52 Greek Democratic Left chief Fotis Kouvelis says there will be a government but it may not be formed today.
09.40 BREAKING NEWS...
Spain sells €2.4bn of 12-month bills versus €2.19bn at previous auction. Yield of 5.074pc versus 2.985pc. Bid to cover 2.2 versus 1.8.
Sells €640m of 18-month bills versus €710m at previous auction. Yield of 5.107 versus 3.302pc. Bid to cover 4.4 versus 3.2.
Meanwhile, Denmark has sold two-year note at a negative yield for the first time.
09.38 Nomura says the Spanish solvency risks, and not Greece, is the primary focus for the eurozone.
Spain now saying that only the detailed audit of it banks will be delayed until September. Its initial report is still out in July.
09.30 BREAKING NEWS...
UK inflation slows to 2.8pc in May from 3pc in April. Analysts expected 3pc. 30-month low.
09.11 German Constitutional Court says government did not inform Parliament sufficiently about configuration of ESM. Upholds lawsuit against ESM. Euro falls to $1.2585.
09.03 Meeting between New Democracy leader Antonis Samaras and Democratic Left chief Fotis Kouvelis has ended.
Kouvelis says the country needs a government and renegotiation on certain aspects of [bailout] memorandum, "we have conditions". He adds that a government is possible if there is an agreement on policy platform and "trustworthiness of personalities". Process of forming government "moving forward at a pace". Will would meet Samaras again later today.
Alex Spillius, the Telegraph's Greece correspondent, said:
The presence of Kouvelis in an ND-led coalition would give not only an additional 17 members of parliament but anti-bailout credibility with the Greek people. The veteran Kouvelis wants to do the right thing – his pre-election speeches stressed the need for ‘national stability’.
But many in his own party don’t want to join on any terms. They fear that associating themselves with the bailout could lead to electoral oblivion next time, as it did for L.A.O.S, a right-wing Orthodox party that supported the international deal in March and now has precisely zero seats.
08.50 Nick Malkoutzis, deputy editor of Greek newspaper Kathimerini:
08.26 Cyprus' Finance Minister Vassos Shiarly has said financing to recapitalise the country's banks is a priority, and the issue is urgent.
Options still open on funding, including bilateral loan or help from EFSF.
08.20 New Democracy leader Antonis Samaras is meeting Democratic Left chief Fotis Kouvelis now.
Samaras has made it clear that he will seek a renegotiation of the second memorandum of understanding with the EU and IMF. The devil will be in the details, but speaking late last night after meetings on forming a coalition he suggested the revisions would not be minor.
He said: "We will simultaneously have to make some necessary amendments to the bailout agreement, in order to relieve the people of crippling unemployment and huge hardships."
07.40 The Bank of Spain asked the four auditors examining the balance sheets of Spanish lenders to delay their reports to conduct a more thorough study.
The auditors’ reports on Spain’s 14 main banking groups will now be published in September instead of by July 31.
This is very bad news, just adds to nervousness over country's financial health.
07.26 Spanish 10-year bond yields have fallen slightly this morning to just above 7pc, Italy's just above 6pc.
ING and BNP both believe that the ECB will buy sovereign bonds again ifSpain hits 7.5pc.
07.20 Spanish police are now patrolling farmland after the economic crisis saw a spike in people stealing crops.
In villages near farming areas, several thousand paramilitary Civil Guards, regional and local police are even setting up checkpoints to sniff out stolen fruit or farming equipment such as copper wire used in irrigation systems. The Civil Guard says sometimes its officers mount "cage operations" - sealing off whole villages to check cars and trucks.
"This has emerged because of social alarm. Because of the crisis, crime is up," said the local police chief Ernesto Banos. "And when cherry season comes around, people say, 'what now, cherries? OK, let's go get them."
06.34 IMF chief Christine Lagarde has revealed that member states have promised a total of $456bn for its new crisis fund, $26bn more than a target set in April. The UK has pledged $15bn.
China will contribute $43bn, state news agency Xinhua confirmed on Tuesday morning. Lagarde said:
Countries large and small have rallied to our call for action, and more may join. I salute them and their commitment to multilateralism. As a result, total pledges have risen to $456bn, almost doubling our lending capacity.
06.20 7,300 miles away in Athens, things aren't much better. Louise Armitstead and Alex Spillius report that Greece could be knocking on Brussels' door for a third bail-out as soon as a government is formed:
While Antonis Samaras, leader of Greece's New Democracy party, scrambled to forge a coalition with Pasok, his officials admitted their first task would be to renegotiate the €130bn (£104.4bn) bail-out agreed in May.
Dimitrios Tsmocos, a senior economic adviser, said Mr Samaras intends to "honour Greece's contractual obligations but will actively and aggressively renegotiate the memorandum". Another senior aide warned of a "social explosion" in Greece if the bail-outs terms were not relaxed.
Athens has to reduce its budget deficit to below 3pc of GDP by 2014 and find a further €11bn in public spending cuts from 2014 to 2016. But spiralling economic woes have already driven Greece off course.
However, experts warned Greece will need another cash injection if the terms are relaxed. Joerg Asmussen, executive board member of the European Central Bank, said: "If one is pressing to shift fiscal targets, one should be so honest to also say that as long as a country is running a primary deficit, extending the fiscal targets will automatically mean that there will be an additional external financing need.
No comments:
Post a Comment