http://www.zerohedge.com/contributed/2012-06-12/greeces-scams-extortion-and-%E2%80%9Csuicidal%E2%80%9D-possibility
http://ekathimerini.com/4dcgi/_w_articles_wsite2_1_12/06/2012_446695
By Vangelis Mandravelis
The state is in desperate need of funds from privatizations, but as all procedures in the state privatization fund (TAIPED) have been frozen for the last couple of months due to the two general elections, the targets for sell-off revenues this year will have to be revised again. Only the state lotteries are ready to be sold off, with the Public Gas Corporation (DEPA) a possible second target, under certain circumstances.
“Progress in the privatizations sector has been slower than expected,” was the admission by the European Commission in its recent report on the Greek economy in the context of the implementation of the stability and growth plan in the European Union.
Brussels attributes the sell-off delays to the adverse market conditions as well as the technical and legal obstacles raised during their preparation. “In the months prior to the private sector involvement [PSI], the market showed particularly low interest in Greek assets,” the Commission document released at the end of May stated.
Brussels now expects the implementation of Greece’s second loan agreement to overcome the obstacles: “Provided that the implementation of the second funding program helps lift the negative conditions in the markets, the privatization fund will be able to create a constant flow of assets for privatization for a number of years,” the Commission states in its recommendations to the Greek government.
The margin for the creation of revenues in 2012 is particularly small. Speaking to the Financial Times and on CNBC, the general director of TAIPED, Costas Mitropoulos, admitted that in the next few months revenues from privatizations will remain close to zero. All accept that the target of revenues of 3 billion euros from privatizations by the end of the year is not possible anymore, which is why the target set for sell-off receipts by 2015 will have to be reduced from the 19 billion euros set out in the bailout agreement.
As a result, the only privatization that could bring in significant revenues by the end of 2012 is that of the state lotteries, which is at the most advanced stage, with DEPA and the gas transmission network operator DESFA likely to follow.
The Commission insists on the target for privatization revenues remaining at 50 billion euros, but does not rule out an increase to the assets to go on sale after the recapitalization of local banks. Brussels notes that besides contributing to covering financing needs, privatizations “continue to be of vital significance for the return to growth, the modernization of the economy and the attraction of foreign direct investment.”
Submitted by Tyler Durden on 06/12/2012 07:57 -0400
Five days ahead of the Greek parliamentary re-vote, the media propaganda machine has gone mute due to the moratorium on the RAND() known as popular polling: forgotten are the days when Syriza' popularity rating would swing from -100 to +100 in the span of hours, Diebold notwithstanding. Which leaves the media machine just one tactic: updates on the economic collapse as a tacit suggestion of what may happen if situation is not fixed. And while at this point it is nearly impossible to distinguish propaganda from fact, the latest numbers out of Kathimerini are just stunning. As Bloomberg's Marcus Bensasson reports, citing Kathimerini, the Greek banking system has continued to hemorrhage deposits this month, amid uncertainty over the outcome of elections on June 17. "Many people are putting money in shares of mutual funds denominated in dollars because of the bureaucratic difficulty of taking money out of Greece, or are keeping cash at home, the newspaper said." How much? "Deposits are leaving the banking system at a rate of 100 million to 500 million euros ($125 million to $625 million) a day, Kathimerini said, without specifying over how long a period that rate of outflow has continued."
On June 17, when Greeks try once again to choose their next government, they may decide their country’s fate—or not. One thing is for sure, whichever parties will be able to form a coalition government, they will push for more bailout billions, but this time, forget the conditions, the structural reforms, the austerity. Just give us the money. And however much we want. They’d watched how Spanish Prime Minister Mariano Rajoy had asked for a bailout ... after reassuring everyone with utmost sincerity and for the longest time that neither Spain nor its banks would need one.
Not a detail escaped the Greeks when, after the bailout meeting on Saturday, Rajoy proclaimed victory, saying he’d been offered €100 billion, no strings attached. That’s what Greek politicians wanted to hear—and they jubilated; the yoke of German-imposed structural reforms and austerity had been broken. It didn’t matter to them how much German, Finnish, and EU officials protested that that’s not how they understood the agreement; there were, in fact, lots of strings attached, they said, which makes you wonder if there was even an agreement.
But that sliver of hope, false as it may prove to be, hasn’t stopped the ongoing run on Greek banks. Companies and individuals have long been transferring practically every euro that wasn’t nailed down into foreign countries, and they have been stashing emergency funds under mattress or in boxes—for fear that euro accounts would be converted to drachmas over some weekend in the near future. And the few euros that still remain behind might be pulled out right after the election, if push came to shove. Greece is effectively being bled dry by its own people.
So the bailout Troika has put the Greek banking system on a transfusion. Lifeblood in the amount of €18 billion arrived last week. More money is available through the ECB’s Emergency Liquidity Assistance, which lends money via national central banks to local banks. However, the ECB has shrouded in mystery for how long and to what extent it would be willing to keep the transfusions going, worried apparently about throwing good money after bad.
And scams are cropping up to take advantage of the desperate need for funds that banks can no longer provide. On Tuesday, police arrested three men and a woman, part of a gang whose members—posing as ministry employees, civil engineers, and architects—offered individuals and businesses access to large amounts of EU money to fund business projects, equipment purchases, or solar-voltaic installations, all logical hot-buttons in the EU realm of subsidies. For a fee. The racket had been going on for two years, and police estimated that they’d been able to con over €350,000 out of some gullible victims. Because, even in chaos, people seek opportunity.
And so Greece’s election may not decide the country's future in the Eurozone, but may simply prolong the extortion racket to keep the money flowing, freely this time, and in liberal quantities—efforts that the Troika may consider distasteful and brush off with disdain. But it’s not even certain that the winning party will have enough votes to form a governing coalition or that any parties could agree to form one. In which case, a third election would be required, a possibility that Antonis Samaras, leader of the conservative New Democracy, called “suicidal.”
Tourism, Greece’s second largest industry after the shipping industry, took another hit as tour-bus drivers went on strike; owners demanded that drivers take a 50% cut in pay on top of the 20% cut they’ve already suffered! And Greece is the model for Spain and Italy. Read.... Everything is Getting Gummed up in Greece.
http://ekathimerini.com/4dcgi/_w_articles_wsite2_1_12/06/2012_446695
Commission: No plans for capital controls for Greece
  |
The European Commission is not aware of any plans for capital controls for Greece, Commission spokesman Olivier Bailly told reporters in Brussels on Tuesday.
Such controls are legally possible in specific cases of public order and security, Bailly said, adding that no such plan is under discussion.
“We are working on one plan and only one plan to keep Greece in the eurozone,” Bailly said.
and...
http://ekathimerini.com/4dcgi/_w_articles_wsite2_1_12/06/2012_446724
Only state lotteries are currently ready for sale
 |
The state is in desperate need of funds from privatizations, but as all procedures in the state privatization fund (TAIPED) have been frozen for the last couple of months due to the two general elections, the targets for sell-off revenues this year will have to be revised again. Only the state lotteries are ready to be sold off, with the Public Gas Corporation (DEPA) a possible second target, under certain circumstances.
“Progress in the privatizations sector has been slower than expected,” was the admission by the European Commission in its recent report on the Greek economy in the context of the implementation of the stability and growth plan in the European Union.
Brussels attributes the sell-off delays to the adverse market conditions as well as the technical and legal obstacles raised during their preparation. “In the months prior to the private sector involvement [PSI], the market showed particularly low interest in Greek assets,” the Commission document released at the end of May stated.
Brussels now expects the implementation of Greece’s second loan agreement to overcome the obstacles: “Provided that the implementation of the second funding program helps lift the negative conditions in the markets, the privatization fund will be able to create a constant flow of assets for privatization for a number of years,” the Commission states in its recommendations to the Greek government.
The margin for the creation of revenues in 2012 is particularly small. Speaking to the Financial Times and on CNBC, the general director of TAIPED, Costas Mitropoulos, admitted that in the next few months revenues from privatizations will remain close to zero. All accept that the target of revenues of 3 billion euros from privatizations by the end of the year is not possible anymore, which is why the target set for sell-off receipts by 2015 will have to be reduced from the 19 billion euros set out in the bailout agreement.
As a result, the only privatization that could bring in significant revenues by the end of 2012 is that of the state lotteries, which is at the most advanced stage, with DEPA and the gas transmission network operator DESFA likely to follow.
The Commission insists on the target for privatization revenues remaining at 50 billion euros, but does not rule out an increase to the assets to go on sale after the recapitalization of local banks. Brussels notes that besides contributing to covering financing needs, privatizations “continue to be of vital significance for the return to growth, the modernization of the economy and the attraction of foreign direct investment.”
Still, despite the freeze in the privatization process, the fund appears to allow certain procedures to continue as they do not require approval by the TAIPED board. Therefore the fund has just published a tender for the hiring of a legal counsel, with an emphasis on EU law, for the needs of the project regarding the utilization of the Elliniko plot.
The fund also published the environmental effects study for the International Broadcasting Center, according to which the additional structures, besides the Golden Hall shopping mall, could be used for the creation of a museum for the 2004 Olympic Games, for the lease of professional spaces (for offices, restaurants or entertainment etc) as well as for theaters etc.
and.....
http://ekathimerini.com/4dcgi/_w_articles_wsite2_1_12/06/2012_446495
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http://www.ekathimerini.com/4dcgi/_w_articles_wsite2_1_12/06/2012_446571
Emergency funds to be released for energy market, says official
The funds, belonging to Greek energy suppliers that went out of business earlier this year, had been frozen as part of a judicial investigation. "Part of the money will be used to pay electricity producers... because there is a risk of electricity disruptions in the coming days,» a court official who declined to be named told Reuters. [Reuters] |
and....
'Emergency' Invites Draconian Measures
In what the Atlantic magazine called 'one of Europe's dumbest moves yet', the euro-group finance ministers apparently let it be known via leaks what kind of contingency 'emergency measures' they are considering to implement in the event of a Greek exit from the euro area.
We are actually glad this has come out into the open, as this demonstrates the enormous price citizens are likely to pay in the end if the ongoing bailout charade fails. As always, a perceived emergency is getting to the point where it is ever more likely that it will be used as an opportunity to severely limit individual liberties and in this particular case interfere massively with peoples' property rights to boot – all 'for their own good' of course.
“European finance officials have discussed limiting the size of withdrawals from ATM machines, imposing border checks and introducing euro zone capital controls as a worst-case scenario should Athens decide to leave the euro.EU officials have told Reuters the ideas are part of a range of contingency plans. They emphasized that the discussions were merely about being prepared for any eventuality rather than planning for something they expect to happen – no one Reuters has spoken to expects Greece to leave the single currency area. [that almost guarantees it will, ed.]But with increased political uncertainty in Greece following the inconclusive election on May 6 and ahead of a second election on June 17, there is now an increased need to have contingencies in place, the EU sources said.The discussions have taken place in conference calls over the past six weeks, as concerns have grown that a radical-left coalition, SYRIZA, may win the second election, increasing the risk thatGreece could renege on its EU/IMF bailout and therefore move closer to abandoning the currency. No decisions have been taken on the calls, but members of the Eurogroup Working Group, which consists of euro zone deputy finance ministers and heads of treasury departments, have discussed the options in some detail, the sources said.
Belgium's finance minister, Steve Vanackere, said at the end of May that it was a function of each euro zone state to be prepared for problems. These discussions have been in that vein, with the specific aim of limiting a bank run or capital flight.As well as limiting cash withdrawals and imposing capital controls, they have discussed the possibility of suspending the Schengen agreement, which allows for visa-free travel among 26 countries, including most of the European Union. "Contingency planning is underway for a scenario under which Greece leaves," one of the sources, who has been involved in the conference calls, said. "Limited cash withdrawals from ATMs and limited movement of capital have been considered and analyzed."Another source confirmed the discussions, including that the suspension of Schengen was among theoptions raised."These are not political discussions, these are discussions among finance experts who need to be prepared for any eventuality," the second source said. "It is sensible planning, that is all, planning for the worst-case scenario."The first official said it was still being examined whether there was a legal basis for such extreme measures.” [thanks for the laugh, ed.]
Belgium's finance minister, Steve Vanackere, said at the end of May that it was a function of each euro zone state to be prepared for problems. These discussions have been in that vein, with the specific aim of limiting a bank run or capital flight.
As well as limiting cash withdrawals and imposing capital controls, they have discussed the possibility of suspending the Schengen agreement, which allows for visa-free travel among 26 countries, including most of the European Union. "Contingency planning is underway for a scenario under which Greece leaves," one of the sources, who has been involved in the conference calls, said. "Limited cash withdrawals from ATMs and limited movement of capital have been considered and analyzed."
Another source confirmed the discussions, including that the suspension of Schengen was among the
options raised.
"These are not political discussions, these are discussions among finance experts who need to be prepared for any eventuality," the second source said. "It is sensible planning, that is all, planning for the worst-case scenario."
The first official said it was still being examined whether there was a legal basis for such extreme measures.” [thanks for the laugh, ed.]
Belgium's finance minister, Steve Vanackere, said at the end of May that it was a function of each euro zone state to be prepared for problems. These discussions have been in that vein, with the specific aim of limiting a bank run or capital flight.
As well as limiting cash withdrawals and imposing capital controls, they have discussed the possibility of suspending the Schengen agreement, which allows for visa-free travel among 26 countries, including most of the European Union. "Contingency planning is underway for a scenario under which Greece leaves," one of the sources, who has been involved in the conference calls, said. "Limited cash withdrawals from ATMs and limited movement of capital have been considered and analyzed."
Another source confirmed the discussions, including that the suspension of Schengen was among the
options raised.
"These are not political discussions, these are discussions among finance experts who need to be prepared for any eventuality," the second source said. "It is sensible planning, that is all, planning for the worst-case scenario."
The first official said it was still being examined whether there was a legal basis for such extreme measures.” [thanks for the laugh, ed.]
The growing incentive for inner-European capital controls is illustrated by the imbalances building up in the TARGET-2 payments system. This is not just a mere 'accounting convention' as various eurocrats and central bankers keep insisting. Granted, it won't matter as long as the currency union lasts – but it will matter greatly in case it breaks up – click chart for better resolution.
and.....
Greek Bank Run Update: €100-€500 Million Per Day
Five days ahead of the Greek parliamentary re-vote, the media propaganda machine has gone mute due to the moratorium on the RAND() known as popular polling: forgotten are the days when Syriza' popularity rating would swing from -100 to +100 in the span of hours, Diebold notwithstanding. Which leaves the media machine just one tactic: updates on the economic collapse as a tacit suggestion of what may happen if situation is not fixed. And while at this point it is nearly impossible to distinguish propaganda from fact, the latest numbers out of Kathimerini are just stunning. As Bloomberg's Marcus Bensasson reports, citing Kathimerini, the Greek banking system has continued to hemorrhage deposits this month, amid uncertainty over the outcome of elections on June 17. "Many people are putting money in shares of mutual funds denominated in dollars because of the bureaucratic difficulty of taking money out of Greece, or are keeping cash at home, the newspaper said." How much? "Deposits are leaving the banking system at a rate of 100 million to 500 million euros ($125 million to $625 million) a day, Kathimerini said, without specifying over how long a period that rate of outflow has continued."
Considering that the Greece banking system has about €170 billion in total deposits, this is roughly 0.3% of the entire deposit base fleeing each day - those who understand the nuances of fractional reserve banking get why this could be an issue.
Putting this in the US context, which hasover $8 trillion in various forms of deposits, this would be equivalents to about $25 billion getting withdrawn. Every day.
and.....
http://www.athensnews.gr/portal/11/56206
| Bundesbanker: Greece must stick to bailout terms | |||
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Any new government must stick to austerity measures agreed under its bailout programme to qualify for further help, a German central bank board member said on Tuesday, warning voters that Europe could cut bailout aid to the country if they snub the memorandum's terms in Sunday's election.
"The country needs to stick to the agreed austerity and structural reform measures - no ifs, no buts," Bundesbank board member Andreas Dombret said, according to the text of a speech to be delivered in London.
"There is no basis for external aid without the agreed reform programme," he added. "There can be no exception for Greece in this regard, as this would inevitably undermine the balance of give-and-take in other program countries, too."
Dombret added that the European Central Bank's monetary policy could not "extinguish the fire" of the eurozone crisis.
"Addressing the sovereign debt crisis is and remains, first and foremost, a fiscal policy task," he said, adding that the ECB's monetary policy was "rather accommodative" thanks partly to non-standard measures such as long-term liquidity provision.
"Over the medium to long term, continued provision of ample liquidity might, through various channels, de-anchor inflation expectations, which would translate into higher inflation risks," Dombret said. "It could also pave the way for new asset bubbles, thereby sowing the seeds of the next crisis."
On Sunday, head of Bundesbank warned that Greece can expect further financial support only if it adheres to the existing bailout programme. "The new Greek government, once it is formed, has to send a clear signal whether it is ready to implement the agreed reform measures. It is in Greece's hands to decide," said Jens Weidmann. He said this was necessary as it would otherwise cast doubts over the binding effect of other euro zone programmes, like those for Ireland and Portugal. (Reuters)
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