View from Greece on the back and forth and basic humiliation going on....
http://www.ekathimerini.com/4dcgi/_w_articles_wsite1_1_21/11/2012_471074
Greek debt solution remains elusive
Options on table after Eurogroup failure, as PM flies to Brussels for EU summit
After 11 hours of talks, a meeting between eurozone ministers and International Monetary Fund Managing Director Christine Lagarde broke up Wednesday morning without concluding either on the disbursement of up to 44 billion euros in loan tranches Athens is expecting next month, nor on how to reduce its runaway debt.
The failure to reach a deal was a blow to Samaras and his government, which had argued that the austerity package passed this month would lead to both issues being resolved.
“Greece did what it had to and what it had committed to,” Samaras said in a statement before he flew to Brussels for the EU leaders’ summit, which begins Thursday. “Our partners now have a duty to meet the responsibilities they have assumed.”
Sources said that it was not clear if Samaras would raise the Greek issue at the summit, which is dedicated to agreeing the EU budget for 2014-2020, but he would have the opportunity for one-on-one discussions with other leaders at the sidelines of the meeting.
Kathimerini understands that the eurozone and the IMF are about 4 percent apart on their predictions regarding where Greek debt will stand after a series of measures to reduce it. The two sides are aiming to agree on a formula that would reduce what Greece owes to its lenders to 124 percent of GDP by 2020 and 108 percent by 2022.
The IMF appears to have backed down on its demands for eurozone countries to accept haircuts on their bilateral loans to Greece but the option of lower interest rates is also problematic as it would require lenders to adjust their national budgets to account for lower revenues and would lead to some countries borrowing at a higher cost than the rate at which they lend to Athens.
Germany, meanwhile, has proposed the option of the European Financial Stability Facility (EFSF) lending 10 billion euros to Greece so it can buy back its government bonds at a reduced rate and bring down its debt. Sources said state assets might be demanded as collateral in order to release this funding.
and.....
Unfer-fire Merkel sees 'chances' for solution to Greek debt on Monday
Germany's Angela Merkel came under fire from opposition parties on Wednesday after failing to clinch a financing deal for Greece, with her main rival threatening to withdraw support for her euro policies and delay a budget vote in parliament.
The exchange between Social Democrat (SPD) challenger Peer Steinbrueck and the chancellor was one of the fiercest in months, underscoring how difficult it will be for her to secure Bundestag backing for her euro rescue course in the run-up to next year's election.
Until now Merkel has been able to count on the support of parties like the SPD and Greens to help push through controversial bailout votes in the lower house.
"If we get the impression we are being cheated, we won't come to the rescue anymore when you need our support,» Steinbrueck warned in a speech to the chamber just before Merkel took the podium.
The parliamentary debate was supposed to be focused on the 2013 German budget, which is up for approval on Friday, but it was colored by the failure of European governments to reach an aid deal for Greece at a marathon overnight meeting in Brussels.
After failing twice to clinch an agreement, euro zone finance ministers scheduled a third meeting next Monday where they will try to overcome stubborn differences with the IMF and ECB over how to put Greek debt on a sustainable path.
In closed-door meetings with lawmakers in her conservative party on Wednesday morning, Merkel once again ruled out accepting a so-called «haircut», or losses, on European loans to Greece.
Instead, Berlin is pushing for a solution under which Athens would receive new funds from Europe's EFSF bailout fund to buy back Greek debt held by private investors at a discount. Germany is also prepared to lower the interest rates Greece pays on its loans and consider stretching out maturities.
But even with these measures, Greece seems sure to miss a goal of reducing its debt pile to 120 percent of annual economic output by 2020. The IMF is insisting this goal be kept, while governments are open to pushing back the target date to 2022.
"I believe there are chances, one doesn't know for sure, but there are chances to get a solution on Monday,» Merkel said in her speech in parliament.
She made clear however, that she favored a piecemeal «step by step» solution to Greece's and Europe's problems - an approach Steinbrueck and his opposition allies say is based on a cynical political calculus and will only raise the long-term costs of the crisis for German taxpayers.
"This coalition is only fighting with and for itself, it isn't dealing with the problems of this country and its citizens,» Steinbrueck said. «If you need all your strength to keep your coalition together, at the expense of the country, then you all need to go into rehab."
He pressed Merkel to delay Friday's vote on the German budget until there was more clarity on Greece. Finance Minister Wolfgang Schaeuble rebuffed that suggestion, promising that new Greek aid measures would not affect the 2013 budget.
Despite the failure to reach a deal in Brussels, Schaeuble said he was confident the Bundestag would be able to hold a separate vote on Greek aid at the end of next week.
Like Merkel, he made clear that different countries could agree different solutions for Greece - a sign that the divide may simply be too big to agree a common stance among all euro members.
Merkel is riding high in the polls roughly 10 months before the election, with two in three Germans saying she is doing a good job and her Christian Democrats (CDU) roughly 10 percentage points ahead of the SPD.
But satisfaction with her government is low, in part because of her struggling coalition partners, the Free Democrats (FDP), who have seen their support plunge.
The euro crisis also remains a major threat. The opposition and some private economists accuse Merkel of delaying a lasting solution to Greece's woes in order to avoid having to take politically risky steps before the vote.
In her speech to parliament, she was greeted with loud jeers when she said: «This government is the most successful one since German reunification».
and.....
Opposition parties slam gov't for 'not negotiating'
The failure of Greece’s international creditors to reach an agreement on releasing further crucial rescue loans for the country, and the government’s handling of negotiations with the creditors, were the focus of scathing criticism by opposition parties on Wednesday.
Alexis Tsipras, the head of the main leftist opposition SYRIZA, which is leading in opinion polls, said that Prime Minister Antonis Samaras had failed to rise to the occasion by not exploiting the negotiating power presented to it by the rift between eurozone and International Monetary Fund officials. “At a time of major clashes, he talks about technical difficulties and has fully assumed the position that Greece can make no demands,” Tsipras said.
He also accused the premier of losing “the last shred of credibility” after insisting that the country would run out of money on November 16 and charged that Samaras had become “an integral part of the pre-election campaign of Ms Merkel, who does not want to admit to the German people that she has made serious mistakes.”
Tsipras reiterated his party’s conviction that “Greece’s debt is not repayable,” adding that the release of another tranche of rescue funding would not secure the sustainability of the country’s debt burden and that the only option was “aggressive renegotiation.”
The rightwing Independent Greeks also interpreted the deadlock at Tuesday's Eurogroup as a vindication of the party’s calls for a unilateral writeoff of Greece’s debt and a revocation of its bailout deals with foreign creditors. The party also slammed the government for failing to take a tough enough stance opposite the country’s troika of international lenders. “The position of the Greek government which has been characterized by the full surrender to the demands of the troika would be much more credible if statements uttered for domestic consumption were accompanied by a plan for national reaction to the dead-end of the memorandum,” said spokesman Christos Zois, referring to Greece’s foreign bailout program.
Communist Party (KKE) leader Aleka Papariga said that foreign creditors had only been interested in “dividing the losses” at Tuesday's Eurogroup summit but predicted that they would reach a “fragile, temporary compromise.” She also repeated her party’s calls for the country’s “full disengagement” from the European Union which he described as “a wolves’ lair.”
View from the UK.....
http://www.guardian.co.uk/business/2012/nov/21/eurozone-crisis-greece-aid-bailout-fail
Portugal's Gaspar says deal for Greece is close
Portuguese finance minister Vitor Gaspar has said Greece's lenders are close to a deal to get the country's debt down to a sustainable level, despite the failure of the latest talks to get the job done.
Speaking alongside German counterpart Wolfgang Schäuble, he said (as reported by Reuters):
We are very close to an agreement about Greece and therefore that will be a very positive development, which is important for Greece, it is important for the euro area, it is important for Portugal and I dare to say it is important for Germany as well.
So there we have it. We're close to a deal. Everyone says so, apart from those who say we're not. Start building up your hopes for Monday now.
Germany's Wolfgang Schaeuble and his Portuguese counterpart Vitor Gaspar hold a news conference in Berlin. Photograph: Reuters/Tobias Schwarz
Or maybe not. The the Wall Street journal suggests Schäuble changed his mind about a Greek deal at the vital moment:
| The IMF appears to have backed down on its demands for eurozone countries to accept haircuts on their bilateral loans to Greece but the option of lower interest rates is also problematic as it would require lenders to adjust their national budgets to account for lower revenues and would lead to some countries borrowing at a higher cost than the rate at which they lend to Athens. Germany, meanwhile, has proposed the option of the European Financial Stability Facility (EFSF) lending 10 billion euros to Greece so it can buy back its government bonds at a reduced rate and bring down its debt. Sources said state assets might be demanded as collateral in order to release this funding.
and.....
Unfer-fire Merkel sees 'chances' for solution to Greek debt on Monday
The exchange between Social Democrat (SPD) challenger Peer Steinbrueck and the chancellor was one of the fiercest in months, underscoring how difficult it will be for her to secure Bundestag backing for her euro rescue course in the run-up to next year's election. Until now Merkel has been able to count on the support of parties like the SPD and Greens to help push through controversial bailout votes in the lower house. "If we get the impression we are being cheated, we won't come to the rescue anymore when you need our support,» Steinbrueck warned in a speech to the chamber just before Merkel took the podium. The parliamentary debate was supposed to be focused on the 2013 German budget, which is up for approval on Friday, but it was colored by the failure of European governments to reach an aid deal for Greece at a marathon overnight meeting in Brussels. After failing twice to clinch an agreement, euro zone finance ministers scheduled a third meeting next Monday where they will try to overcome stubborn differences with the IMF and ECB over how to put Greek debt on a sustainable path. In closed-door meetings with lawmakers in her conservative party on Wednesday morning, Merkel once again ruled out accepting a so-called «haircut», or losses, on European loans to Greece. Instead, Berlin is pushing for a solution under which Athens would receive new funds from Europe's EFSF bailout fund to buy back Greek debt held by private investors at a discount. Germany is also prepared to lower the interest rates Greece pays on its loans and consider stretching out maturities. But even with these measures, Greece seems sure to miss a goal of reducing its debt pile to 120 percent of annual economic output by 2020. The IMF is insisting this goal be kept, while governments are open to pushing back the target date to 2022.
"I believe there are chances, one doesn't know for sure, but there are chances to get a solution on Monday,» Merkel said in her speech in parliament.
She made clear however, that she favored a piecemeal «step by step» solution to Greece's and Europe's problems - an approach Steinbrueck and his opposition allies say is based on a cynical political calculus and will only raise the long-term costs of the crisis for German taxpayers. "This coalition is only fighting with and for itself, it isn't dealing with the problems of this country and its citizens,» Steinbrueck said. «If you need all your strength to keep your coalition together, at the expense of the country, then you all need to go into rehab." He pressed Merkel to delay Friday's vote on the German budget until there was more clarity on Greece. Finance Minister Wolfgang Schaeuble rebuffed that suggestion, promising that new Greek aid measures would not affect the 2013 budget. Despite the failure to reach a deal in Brussels, Schaeuble said he was confident the Bundestag would be able to hold a separate vote on Greek aid at the end of next week. Like Merkel, he made clear that different countries could agree different solutions for Greece - a sign that the divide may simply be too big to agree a common stance among all euro members. Merkel is riding high in the polls roughly 10 months before the election, with two in three Germans saying she is doing a good job and her Christian Democrats (CDU) roughly 10 percentage points ahead of the SPD. But satisfaction with her government is low, in part because of her struggling coalition partners, the Free Democrats (FDP), who have seen their support plunge. The euro crisis also remains a major threat. The opposition and some private economists accuse Merkel of delaying a lasting solution to Greece's woes in order to avoid having to take politically risky steps before the vote. In her speech to parliament, she was greeted with loud jeers when she said: «This government is the most successful one since German reunification».
and.....
Opposition parties slam gov't for 'not negotiating'
Alexis Tsipras, the head of the main leftist opposition SYRIZA, which is leading in opinion polls, said that Prime Minister Antonis Samaras had failed to rise to the occasion by not exploiting the negotiating power presented to it by the rift between eurozone and International Monetary Fund officials. “At a time of major clashes, he talks about technical difficulties and has fully assumed the position that Greece can make no demands,” Tsipras said. He also accused the premier of losing “the last shred of credibility” after insisting that the country would run out of money on November 16 and charged that Samaras had become “an integral part of the pre-election campaign of Ms Merkel, who does not want to admit to the German people that she has made serious mistakes.” Tsipras reiterated his party’s conviction that “Greece’s debt is not repayable,” adding that the release of another tranche of rescue funding would not secure the sustainability of the country’s debt burden and that the only option was “aggressive renegotiation.” The rightwing Independent Greeks also interpreted the deadlock at Tuesday's Eurogroup as a vindication of the party’s calls for a unilateral writeoff of Greece’s debt and a revocation of its bailout deals with foreign creditors. The party also slammed the government for failing to take a tough enough stance opposite the country’s troika of international lenders. “The position of the Greek government which has been characterized by the full surrender to the demands of the troika would be much more credible if statements uttered for domestic consumption were accompanied by a plan for national reaction to the dead-end of the memorandum,” said spokesman Christos Zois, referring to Greece’s foreign bailout program.
|
ECB backs recapitalisation plan for Greek banks
The European Central Bank has said it is satisfied with a plan to recapitalise Greece's banks.
The €50bn proposal involves Greek lenders issuing new shares and convertible bonds, some of which could end up with a bailout-financed fund if private investors shy away.
Despite some criticism the scheme was inadequate, the ECB welcomed the plan. As reported by Reuters, the bank said:
The ECB considers the proposed pricing framework contains appropriate incentives to encourage Greek credit institutions to exit state support as soon as possible.
The European Central Bank has said it is satisfied with a plan to recapitalise Greece's banks.
The €50bn proposal involves Greek lenders issuing new shares and convertible bonds, some of which could end up with a bailout-financed fund if private investors shy away.
Despite some criticism the scheme was inadequate, the ECB welcomed the plan. As reported by Reuters, the bank said:
The ECB considers the proposed pricing framework contains appropriate incentives to encourage Greek credit institutions to exit state support as soon as possible.
My colleague Nils Pratley says the failure of the eurogroup and IMF to reach a deal on Greece is a disgrace. Here's a flavour of his comment:
The basic problem is that the eurozone power group is groping for something that doesn't exist. It wants a financing package that is small enough to maintain the pretence that the last bailout arrangements are proceeding swimmingly; but the ministers also want to make Greek debt sustainable.
It can't be done. The stock of Greek debt is simply too high – as a ratio of GDP, it is forecast to pass 190% in 2014 as recession takes its toll...
The IMF got the correct remedy at the outset of these talks: it's time for so-called official lenders, which would include eurozone countries and the European Central Bank, to accept a haircut on their loans. That's the only way to achieve debt sustainability in Greece definitively...
Unfortunately, next Monday (26 November) will probably produce some form of compromise that delays resolution for another year, when Germany's elections are out of the way. But the eurogroup is playing with fire. Every chapter of the eurozone crisis has carried a similar theme: when politicians don't present themselves as serious, markets react badly
My colleague Nils Pratley says the failure of the eurogroup and IMF to reach a deal on Greece is a disgrace. Here's a flavour of his comment:
The basic problem is that the eurozone power group is groping for something that doesn't exist. It wants a financing package that is small enough to maintain the pretence that the last bailout arrangements are proceeding swimmingly; but the ministers also want to make Greek debt sustainable.It can't be done. The stock of Greek debt is simply too high – as a ratio of GDP, it is forecast to pass 190% in 2014 as recession takes its toll...The IMF got the correct remedy at the outset of these talks: it's time for so-called official lenders, which would include eurozone countries and the European Central Bank, to accept a haircut on their loans. That's the only way to achieve debt sustainability in Greece definitively...Unfortunately, next Monday (26 November) will probably produce some form of compromise that delays resolution for another year, when Germany's elections are out of the way. But the eurogroup is playing with fire. Every chapter of the eurozone crisis has carried a similar theme: when politicians don't present themselves as serious, markets react badly
Greek debt writedown would be bad precedent, say finance ministers
Finance ministers from France and the Netherlands have repeated that a writedown of Greek debt would be a bad precedent.
By that, I suppose they are worried that it would open the floodgates to other countries demanding their own debts be reduced.
And then there is this:
Finance ministers from France and the Netherlands have repeated that a writedown of Greek debt would be a bad precedent.
By that, I suppose they are worried that it would open the floodgates to other countries demanding their own debts be reduced.
And then there is this:
And if businesses are leaving Greece or filing for bankruptcy at the alarming rates seen to date , does any of the Rube Goldberg schemes matter ?
Citigroup and Ikea to cut back in Greece
There is more bad news for Greece, with Citigroup and Ikea both announcing they are cutting back their presence in the country. Our correspondent Helena Smith.
http://greece.greekreporter.com/2012/11/14/neoset-furniture-files-for-bankruptcy/After almost 50 years operating in Greece, Citi Bank today joined the growing list of foreign retailers and lenders who have either sharply reduced their presence or pulled out of the country altogether. The last major international bank with branches nationwide, Citi announced it would close all of its network presence outside of Greece’s two major cities, Athens and Thessaloniki.The closure of some 16 branches will result in about 170 job losses, nearly a tenth of the lender’s total workforce. Earlier this year French lenders Credit Agricole and Societe Generale pulled out of the crisis-hit country.Austerity-induced recession has also seen a host of foreign retailers leave Greece, including the supermarket giant Carrefore and Fnac. This week the UK-owned retailer Costa Coffee also closed its ten Greek stores. Following suit IKEA said it would be cutting wages at all of its outlets in Greece.
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One of the biggest furniture companies in Greece, NEOSET, has filed a bankruptcy petition, another victim of the country’s crushing economic crisis as austerity measures have made many Greeks slow spending almost to a standstill.
One of the biggest furniture companies in Greece, NEOSET, has filed a bankruptcy petition, another victim of the country’s crushing economic crisis as austerity measures have made many Greeks slow spending almost to a standstill.
NEOSET has been active in the Greek market for the past 30 years and employed a total of 1,014 employees in its 100 stores around Greece.
It follows another large furniture company, SATO, which filed for bankruptcy in October. NEOSET published financial statements showed that in fiscal year the company suffered losses of 7.8 million euros ($9.94 million) and its liabilities reached 53.1 million euros, or $67.6 million.
Greek furniture companies are not only suffering under the economic crisis that dropped sales by 60% but because of the multi-natioal furniture companies taking over the Greek market. NEOSET has branches in Canada, Russia and Romania and exports products among others to Bulgaria, Canada, Cyprus, Romania and Ecuador.
and.....
http://www.reuters.com/finance/stocks/SATr.AT/key-developments/article/2616477
Sato Office And Houseware Supplies SA Submitted Into Bankruptcy Protection Law
Sato Office And Houseware Supplies SA announced that it has submitted to the Court an application for bankruptcy protection under Article 99 of Law 3588/2007, which will be heard by the Multi Member First Instance Court of Athens. According to the Company, this action is necessary to ensure the smooth running of its operations.
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