Greece scrambles to obtain latest tranche of Eurogroup welfare ( 4.2 billion euros tranche needed to repay greek bond maturing on May 20th in the amount of 5.6 billion euros ...after paying the May bond , Greece would have about 2 billion euros of cash on hand for everything else the government does other than repay debt to the ECB ) , Prime Minister Samaras scrambles to take greek begging bowl to China...Pasok Party symbolically as broke as Greece itself - rest assured New Democracy is in similar straits....86,000 Civil Mobilization orders to be issued for teachers before their strike - unprecedented step !

http://www.ekathimerini.com/4dcgi/_w_articles_wsite1_1_11/05/2013_498304

Stournaras eyes loans at Eurogroup as Samaras prepares for China As Finance Minister Yannis Stournaras prepares to meet with his eurozone counterparts again in Brussels on Monday for the anticipated approval of further rescue funding, Prime Minister Antonis Samaras is busy preparing for a much-awaited visit to China where he hopes to prospect for investments and promote Greece as a “bridge” to Western Europe for the booming Asian economy. Athens is hopeful that Monday’s Eurogroup summit will give the green light for the release of a 4.2-billion-euro loan tranche. Stournaras and his team have been scrambling to sign off all the ministerial decisions and circulars that implement the provisions of a multi-bill voted through Parliament last month though there are still fears that objections might be raised in Brussels that some of the agreed-to measures are not being enforced. In view of this uncertainty, it remains unclear whether Stournaras will press his eurozone peers to approve another 3.3-billion-euro installment of aid slated for the second quarter of 2013, as he had suggested he would last week. Greece’s delegation to China appears to be traveling with fewer concerns. Samaras is flying to Beijing on Wednesday flanked by around 60 Greek entrepreneurs from several sectors including shipping, tourism, banking and new technologies, as well as officials of the state privatization fund, TAIPED. The premier harbors high hopes for his five-day visit to China, which will include talks with Chinese government officials and entrepreneurs, Kathimerini understands. The fact that Samaras is the second European leader, after French President Francois Hollande, to be invited to Beijing by the country’s new political leadership, is being interpreted as a promising sign for Greece and its hopes to boost trade ties with China. The Chinese have reportedly expressed particular interest in the tourism sector with Chinese travel agencies said to be keen to offer more Greek packages. There is also said to be strong Chinese interest in Greek regional ports and airports following the successful investment by shipping firm Cosco in the cargo terminals of Piraeus. The strengthening of business ties between Greece and China come amid reports that several American and European investors – businesses and hedge funds – are planning strategic moves in the Greek market. http://www.ekathimerini.com/4dcgi/_w_articles_wsite2_1_10/05/2013_498248 Gov’t drafts contingency plan for bond payout By Sotiris Nikas The Finance Ministry has been in a race against time for the last few days in a bid to complete all the prior actions required for the disbursement next week of the next bailout installment amounting to 4.2 billion euros. The aim is for Minister Yannis Stournaras to go to the Eurogroup meeting of eurozone finance ministers on Monday with all the ministerial decisions and circulars implementing the clauses of the recent multi-bill ready. Still, in association with the country’s creditors, the ministry has drafted an alternative plan that would secure the smooth servicing of all the state’s obligations. The ministry is worried that it might be accused at Monday’s meeting of not implementing the agreed measures, which could block the approval of the 4.2-billion-euro tranche and raise obstacles in the payment of the state bonds that mature on May 20. Sources say that up to yesterday the ministry had overseen the completion of about 90 percent of the decisions required. In essence, the completion of another two or three decisions, concerning changes to the energy sector, was still pending. The ministry has already completed the decisions regarding payment schemes for expired tax debts, new methods for cross-checking tax records, how value-added tax will be paid, and the autonomy and operation of the General Secretariat for Revenues. Ministry sources expect all prior actions to be completed by Monday so that there will be no problems at the Eurogroup, leading to the disbursement of the 4.2 billion euros and the start of talks for the approval of the following tranche of 3.3 billion euros. If all goes well, Monday will see the start of discussions on terms and conditions, also known as milestones, for the payment of the 3.3 billion that concerns the second-quarter part of the bailout loans. This is due in the first half of June. These milestones are measures that Greece would have to implement anyway ahead of the visit by the creditors’ inspectors next month. However, the government is also preparing for the negative scenario, in case the 4.2 billion euros is not released before May 17. If the government does receive that amount, when added to the existing cash of about 3.5 billion euros, it will allow the state to repay the bonds of 5.6 billion euros set to mature on May 20 and maintain the necessary liquidity. The alternative plan concerns the extraordinary issue of treasury bills amounting to 3.8 billion euros that would safeguard the payout of the maturing bonds and the coverage of the state’s other needs until the next bailout funds from the support mechanism come in. This plan has been agreed with the country’s creditors for some time now as both sides recognized the clear danger of the decision for the payment of the next tranche coming too late for the bond payout. The problem is that even if the release of the 4.2 billion euros is approved on Monday, there may not be enough time for the funds to arrive in Greece by Friday. Notably, the extraordinary issue of T-bills worth 3.8 billion euros may well take place even if the installment of 4.2 billion euros is disbursed, but that would mean it will not be necessarily conducted next week. It could take place later, in anticipation also of the approval of the loan tranche of 1.8 billion euros from the International Monetary Fund, expected on May 31. http://www.keeptalkinggreece.com/2013/05/10/pasok-sinks-in-debts-e110-million-loans-in-one-decade/ tagged: 128 million euro debt,debts, Greece, Papandreou,PASOK, political parties,unsutainable debt, Venizelos PASOK sinks in debts: €110 million loans in one decade! Posted by keeptalkinggreece in Politics There stuns the average Greek and possibly also the former PASOK voter: in less than a decade, year in, year out, Greece’s socialist party spent 10 million euro more than it could ‘earn’ and took loans generously given by the banks with the effect that the current debt stands at 128 million euro.  Back in 2003, a year before Costas Simitis stood down for George Papandreou to take over the party leadership the debt was 18 million euro. This was revealed on Thursday by PASOK leader Evangelos Venizelos after an audit carried out on the party’s finances for the period 2003-2013. The party spend 30% more than it earned, the auditors report said, and took loans of 10 million euro in an annual basis. That is, the party had revenues of 20 million per year but spent 30 million. With interests, the total amount is 128 million. Where did all this money go taking into account the party does not pay its employees since almost one year, it does not pay its share on social contributions – and most probably does not pay utilities and rent. “The Socialists have reportedly been unable to pay the 35,000-euro monthly rent for the headquarters at Ippocratous street for the past few months. The rent at the Harilaou Trikoupi offices is reportedly 5,000 euros a month. PASOK continued renting the premises, even after it moved out in 2008.” (ekathimerini) Little information has come out in the press. Last night I heard a journalist claiming on Skai TV that 53 million euro were spent to carry voters living away from their election districts. Others claimed that the money was spent on travels for then party leader George Papandreou and for whatever other reason. Some others claimed also that there were not adequate number of receipts for expenditures,implying that the money disappeared for personal uses. Claims here and claims there, fact is that the Greek banks generously fed the party with money all these years, with sole loan collateral the state subsidize to the political parties. Money that the taxpayers either paid through the subsidize or still pay and will pay for the banks recapitalization. Not to mention that the doors for the average businessman are closed for a loan of even 10,000 euro. Fact is also that neither the party leadership and/or the management will ever be held politically accountable for this acts, neither the banks that gave the money. Media reported that PASOK has loans to three banks. George Papandreou was right in 2009 elections when he was claiming “There is money!”. He was just too fool – to say it polite- and could not or was not able see that the money was loaned and had to be paid back. 60,000 euro per year rent for an empty building? Almost half a million euro rent in times of economic crisis? If that’s not grandiose delusional disorder, I wouldn’t know what it is… But certainly this management is a good example about how good the country’s finances could be managed – not! Inner party consequences Nevertheless, the scandal finances of PASOK, the unsustainable loans and the audit called by Venizelos are going to deepen the gap between the former and the current party leader. It’s the chance for Venizelos to get rid of Papandreou once for all. “Papandreou has been irked by the audit and some reports alleging extravagances during his time at the party’s helm. Venizelos, however, insisted that shedding light on PASOK’s finances was necessary for the party to move forward. “Unity comes through transparency and the truth,” said Venizelos, who added that Papandreou should take legal action if he feels he’s been slighted.”(ekathimerini) The final report of the auditors is yet to be concluded. Venizelos has to push for a “party austerity program”, with radical expenditure cuts and even moving the headquarters to a smaller building. But paying back the debt is impossible, considering the heavy election losses of the party and subsequently the decrease of state support in the future. Most possible some of the debt will have to be written-off with the blessing of the usual … suspects. Some PASOK official expressed discontent over the party’s finances  claiming “the leakages to the press harm the image of the party”. Main thing is to keep the facade LOL Of course, in this country here, politicians and political parties hardly face any consequences. But the state demands from the little devil with a debt of 30,000 euro to sell his home in order to pay his debt. Not to mention the confiscation of properties and assets if this stupid Greeks cannot pay back his loans to the banks. PS I wonder if a similar audit would take place in Samaras’ Nea Dimocratia which allegedly has debts of 120 million euro. http://www.keeptalkinggreece.com/2013/05/11/greek-govt-to-issue-86000-civil-mobilization-orders-for-teachers-before-the-strike/ Greek gov’t to issue 86,000 ‘civil mobilization’ orders for teachers …before the strike Posted by keeptalkinggreece in Society Greek government is determined to have university entrance exams take place as scheduled. Starting date is the 17th of May 2013, not matter what. Therefore, after the teachers’ union announced on Friday that they would launch a strike, the education minister rushed to prime minister. Antonis Samaras signed a “civil mobilization” decision for the 86,000 aspiring strikers. Greek media report that the civil mobilization order will start to be distributed as soon as of Monday and thus before the final strike decision that the teachers’ union OLME will take on May 15th. This has never happened before: that the state issues “civil mobilization orders” before the beginning of a strike. The government apparently -and allegedly – invokes some state laws that allow the government to order civil mobilization in case of ‘extraordinary emergency situations’  like “earthquakes” and so on. Most possibly the government took this decision to calm down students and parents on the verge of a nervous breakdown… PS we have a kind of “psychological warfare” here, I’m afraid. The government passes a law short before the exams and takes the wind out of the teachers’ strike sails as the society is definitely against any teachers’ mobilization during the exams. Or not?