Greece updates - Even as disposable income fell by 4 billion euros in just a year , we see the IMF warning thata failure to collect taxes will lead to more wage cuts - but note half of homeowners just can't afford to pay their 2013 property taxes already ! As tax collects fall short due to greeks having wages cut / pensions cut / benefits cut , more assets will have to be sold off to appease the Troika.....

http://www.ekathimerini.com/4dcgi/_w_articles_wsite2_1_26/01/2013_480526

Disposable income on the slide  Households had 4 billion euros less to spend in the third quarter of 2012 from 2011 By Sotiris Nikas The disposable income of Greek households shrank by about 4 billion euros within just one year, due to reductions in salaries, pensions and benefits as well as a major increase in taxation, according to data released on Friday by the Hellenic Statistical Authority (ELSTAT). The figures published by the state statistics agency show that in the third quarter of 2012 the disposable income of households and nonprofit organizations in Greece dropped to 33.2 billion euros from 37.2 billion euros in the July-September 2011 period. This 10.6 percent slide is attributed to the 11.3 percent decline in workers’ salaries and revenues, along with the 10.2 percent reduction in social benefits and the 17.7 percent increase in taxation on incomes and property. This drop in disposable income is expected to have become even more acute since the end of the third quarter, with the introduction of more austerity measures this winter, including additional taxes as well as cuts to salaries, pensions and benefits. This means that the respective figures for 2013 will show another dramatic decline. ELSTAT data confirm that households’ disposable incomes have been falling steadily since the first quarter of 2010. The result of that has been the serious drop in consumption, which in the third quarter of last year amounted to 35.9 billion euros, down from 38.2 billion in the same period of 2011, i.e. a decline of 2.3 billion euros or 6.1 percent. The rate of household savings also dropped, by 8.1 percent. ELSTAT also announced general government spending and revenues figures on Friday. In Q3 last year revenues went down to 21.1 billion euros from 21.4 billion in the same quarter of 2011, while spending grew from 27 billion to 29 billion euros. This is attributed to the government’s capital transfers to certain banks, amounting to 6.9 billion euros in the context of the program of state assistance to the country’s credit sector.

http://www.ekathimerini.com/4dcgi/_w_articles_wsite1_1_26/01/2013_480604

IMF warns tax failure will lead to wage cuts The executive board of the European Stability Mechanism is due to to hold a teleconference on Monday to confirm the disbursement of Greece’s January bailout tranche, worth 9.2 billion euros. Athens is expected to receive the money, 7.2 billion euros of which will go toward bank recapitalization, by the end of next week. Greece will then have to complete more “prior actions” to receive two more installments of 2.8 billion euros each in February and March. Speaking to Saturday’s edition of Ta Nea newspaper, Poul Thomsen (photo), the head of the International Monetary Fund’s program in Greece, said that failure to improve tax collection this year would result in further cuts to pensions and wages. “To avoid more reductions to salaries and pensions, it is of vital importance that the government progresses with the organization of the tax administration,” said Thomsen. “The government has recognized that the lack of progress is a serious problem and the program now includes steps to tackle this.” Thomsen’s comments came as Fotis Kouvelis, the leader of the junior coalition partner Democratic Left, ruled out the possibility of further wage and pension cuts in an interview with Parapolitika newspaper. http://www.ekathimerini.com/4dcgi/_w_articles_wsite1_1_26/01/2013_480593 Over half of homeowners unable to pay 2013 property tax Just over half of Greek homeowners say they will not be able to pay all their property taxes this year, according to a new poll. The Kapa Research survey for the Hellenic Property Federation (POMIDA) found that of 1,414 people questioned, 54 percent said they would not have enough money to cover the cost of a range of property taxes that have to be paid in 2013. Just under 50 percent said they doubted whether they would be able to meet their mortgage repayments this year, while about 25 percent are already falling behind in their monthly payments. Regarding landlords who rent out their properties, 82.7 percent said that they are losing money from their real estate assets rather than making a profit. http://www.ekathimerini.com/4dcgi/_w_articles_wsite2_1_26/01/2013_480527 A smaller PPC set to go up for sale By Chryssa Liaggou The government is in favor of selling a spin-off of the Public Power Corporation (PPC). The Energy Ministry and its consultants have decided this would offer potential investors an attractive portfolio that would not harm the value of the part of the company that remains in the state’s hands. This «small PPC» plan has led privatization consultants to propose that electricity plants with a total capacity of 3,000 megawatts be included in the deal. They have also examined all existing units to draft plans for the fuel mix proposal of the small PPC. They are further considering the creation of two companies with an output of 1,500 MW apiece. The consultants’ talks with the ministry have intensified as Prime Minister Antonis Samaras has ordered that the definitive plan be submitted to representatives of the country’s creditors by the end of the month. Athens has committed itself to completing the privatization procedure for PPC by the end of 2013.