Greece Fire......
http://hat4uk.wordpress.com/2013/10/24/breaking-samaras-cut-off-at-the-knees-as-rehn-says-no-debt-relief-until-may-2014/
Appalling debt, pdi figures spell
In two astonishing, disastrous developments for the Government of Antonis Samaras yesterday, first the national statistic office Elstat released devastating numbers suggesting zero likelihood of a recovery; and then EC Commissioner Olli Rehn warned there would be no debt relief for Greece until after the European elections in May 2014.
The latest economic, savings and Government expenditure figures for Greece just came out, and once again I owe a debt to Greek Sloggers who have pointed me at them.
It’s a shame all Greeks don’t read them, because they demonstrate quite clearly that – as
The Slog predicted 18 months ago – Greek borrowing and debt are UP. And they also show quite clearly that (a) this is not just a jobless recovery but also a skint recovery, while (b) there simply isn’t any consumer disposable income left to drive the economy…because wages and savings are DOWN.
Finally, they suggest terribly strongly that Antonikis Samaras is going to face a few ups and downs himself. But for the moment, he has put his head DOWN between his legs and inserted it UP his botty sphincter.
The Greek borrowing figures are nothing short of catastrophic. To quote Elstat directly: (my emphases)
‘Net borrowing of general government during the second quarter of 2013 amounted to 14.0 billion euro, compared with 3.8 billion euro in the second quarter of 2012. The increase in the General Government deficit in the second quarter of 2013 is due to capital transfers in the context of the program of state aid to specific banks.’
Well pop goes the weasel. And what a weasel it all is. Just kop a shufti at these disposable income numbers:
‘During the second quarter of 2013, disposable income of the households and non-profit institutions serving households (NPISH) sector (S.1M) decreased by 9.3% in comparison with the same quarter of the previous year, from 33.2 billion euro to 30.1 billion euro. This was mainly on account of a decrease of 13.9% in the compensation of employees and a decrease of 12.4% in social benefits received by households.’
Well fist me sideways with a stoat, whoodathunk it, eh? Tell me, do they teach economics in Germany? Or is there simply a subject called Weimar Inflation Compulsive Disorder? WICD, bro’.
But Antonikis’s betrayal at the hands of the European Commission would be a giant kick in the cojones for the Greek Prime Minister, if he had any. This is what Antonikis Scamaras said
a month ago about the outlook for 2014:
“”Greece has turned the corner … After the end of the year, we will achieve a new lightening of the debt burden, which our creditors have committed to…it’s clear for everyone to see, even to the most harsh critics of the country. Everyone, except for some from the inside, here in Greece…It is not certain that they don’t see them. It is certain they don’t want to see them. They don’t want to admit that the country is leaving behind its past. Because they are stuck to the past”.
Excellent. “The train now leaving the past will zoom straight through Reality and into a future where economies grow despite debts getting bigger and consumption power dropping like a lead turd out of a robot”.
The glimmer of hope Mr Samurai kept on dangling like a shrivelled carrot in front of the Greek people was “debt relief”. Even if the relief train was still due to arrive on time, it would have to be one Everest of relief, because Hellenic borrowing alone quadrupled year on year, and the debt last year stood at 157% of gdp. It stood at precisely that in 2010….despite two bailouts costing upwards of €300bn Euros. And today, it is er….um, 169% of gdp. According to Greek Reporter yesterday evening, Greece was the eurozone member where [in Q2 2013] the biggest increase in public debt rate took place, at 19.9%.
Worse still for Prime Minister Smarterarse, Little Olli Reindeer (
left) says the relief isn’t coming at Christmas after all. You see Santa doesn’t come down the chimney for naughty boys who tell fibby-wibbies about Golden Dawnies and debty-wetties. At least, this is the only conclusion one can reach after hearing about Olli Rehn’s utterances yesterday.
Ekathimerini this morning reports that Rehn confirmed in Lithuania that it won’t happen until summer 2014. We have a Syriza MP to thank for asking the Big Question:
‘Greece will have to wait until next summer to find out whether it will be granted further debt relief by its eurozone partners and must be prepared for close monitoring of its public finances for many years to come, European Economic and Monetary Affairs Commissioner Olli Rehn has revealed. Responding to a question from SYRIZA MP Nadia Valavani during a conference in Lithuania, Rehn confirmed the speculation that there would be no discussion on how to reduce Greece’s debt burden any further before the European Parliament elections in May.’
Now, as every foole knoe, without debt relief Greece cannot survive past March 2014. It will default by then at the latest.
Over to you, Brussels-am-Berlin: explain, please. Oh, and erm…you too in Frankfurt, Mario: how are you going to print your way out of this one, Signor?
I post twice last month to say “Don’t let Greece drop off your radar”. However the Western MSM does or doesn’t report it, this is a mega-story: Greece is heading unstoppably to disaster, and it looks like the eurobanks are now ready to watch Greece go under. I sense that the hour of Tsipras may have come.
Merkel refers Samaras to troika over new measures
Prime Minister Antonis Samaras and German Chancellor Angela Merkel held brief talks on the sidelines of the European Union leaders’ summit in Brussels on Thursday but, according to sources, the Greek leader’s attempts to discuss the details of his country’s fiscal consolidation program received short shrift.
Kathimerini understands that the meeting between Merkel and Samaras lasted for less than 15 minutes and that the German leader said she was not in a position to make any comment on whether Greece would have to adopt more austerity measures next year. Non-Greek sources said that Merkel informed Samaras that this was an issue he would have to take up with Greece’s troika of lenders, rather than her.
Greek sources did not comment on the content of the leaders’ chat and stressed the fact that talks regarding the formation of a government in Germany meant that no conclusions could be drawn at this stage. They also said that Samaras might visit Berlin once a German coalition deal has been agreed.
However, the mood of Merkel’s meeting with Samaras seems to be in contrast with the talks the chancellor held with Cypriot President Nicos Anastasiades. Sources said that Merkel congratulated Anastasiades for the implementation of Cyprus’s adjustment program and suggested that Nicosia could be in line for “further assistance.”
Samaras had earlier attended the meeting of the European People’s Party, the conservative grouping in the European Parliament. There, he held brief talks with Spanish Prime Minister Mariano Rajoy. However, the event was more notable from a Greek point of view due to Samaras unusually being joined by Finance Minister Yannis Stournaras, who is a technocrat rather than party official. The latter’s attendance could be linked to the fact that a new Commission will be appointed next year and Stournaras may be seen as a suitable candidate for one of the positions.
On his return to Athens, the finance minister will have to prepare for the troika’s return. The visiting officials are expected back in Athens on November 4 and Greece has so far only completed one of the four prior actions needed to secure its next tranche of bailout funding, worth 1 billion euros.
The government has so far only managed to change the code for lawyers, leaving the first phase of the civil service mobility scheme, the payment of state debts to the Athens and Thessaloniki water companies and plans for the future of mining firm Larco, Hellenic Defense Systems (EAS) and the Hellenic Vehicle Industry (ELVO) yet to be completed. |
|
| |
| |
|
|
ekathimerini.com , Thursday October 24, 2013 (21:15)
Gov’t to raise limit of group lay-offs from 5 to 10 pct
Deputy minister says reality demands changes to legislation
By Christina Kopsini
The government appears set to change the legal clause for the lay-off limit of 5 percent on a monthly basis for enterprises with more than 150 employees, Deputy Labor Minister Vassilis Kegeroglou confirmed in response to a question in Parliament on Thursday.
“Reality has overcome the existing legal framework,” said the deputy minister. “Extraordinary conditions call for a different approach,” he noted, citing the case of the Sprider Stores retail chain, which closed at the beginning of this month, to note that the government indeed needs to table a legislative amendment in Parliament to deal with this category of employees.
According to the deputy minister, a study is being compiled by the International Labor Office, the permanent secretariat of the International Labor Organization (ILO), which will be delivered to the government within November, for Athens to examine and decide accordingly.
So it seems that those who have recently been speaking of the limit being raised to 10 percent, which is also the average limit in the European Union, may be proved correct. It also appears to be one of the government’s commitments to its creditors, according to the agreement signed with them.
Kegeroglou’s statements came in response to SYRIZA MP Maria Bolari, who spoke of the abuse of Article 99 of the bankruptcy code, which provides for the protection of debtors from their creditors, as enterprises go bankrupt and prevent their employees from laying claim even to the modest severance pay they would have been entitled to.
Kegeroglou responded that there ought to be a close inspection of the reasons which enterprises cite for resorting to Article 99. He also called for the involvement of the ministries of Development and Finance in examining under what circumstances a company should be able to seek protection under the article. |
|
| |
| |
|
|
ekathimerini.com , Thursday October 24, 2013 (22:18)
State expects 1.7 bln euros from properties
By Vangelis Mandravelis
State privatization fund TAIPED has set in motion the process for the utilization of properties with an estimated total value of 1.7 billion euros.
It has already reached agreements for the utilization of properties worth 420 million euros, while others worth 180 million euros have entered the tender process. Another batch of real estate assets worth 980 million euros is being prepared by TAIPED to enter tenders.
The latter category includes the old Athens airport at Elliniko, which is one of the most important assets in TAIPED’s portfolio, and the course of its utilization will go a long way toward determining the final amount of the 2014 sell-off revenues and the success of the whole privatizations program.
Among the property utilizations already agreed are the sale and leaseback of 28 buildings that should bring in 261 million euros by the end of the year, pending a decision by the State Audit Council. Other deals include the utilization of the International Broadcasting Center (IBC), which houses the Golden Hall shopping center in Maroussi, the Kassiopi plot on Corfu, the Paliouri estate at Halkidiki and the five properties abroad, in London, Brussels, Tashkent, Belgrade and Cyprus.
So far this year cash revenues have been poor, as only a few of those agreements have been completed, with completion meaning the signing of the contract and the payment of the price by the investors. One such completed deal is that of the IBC (81 million euros), and the former Greek Consulate in London (27.5 million euros), which was one of the five properties abroad sold. In the next few days another 3.2 million euros will be cashed in from the sale of the property in Brussels. On the other hand, the deal with British company NCH for the Kassiopi plot has been in a state of limbo since January.
Among the properties in the tender process are the development of the estate at Afandou on Rhodes and that of the Astir Palace hotel at Vouliagmeni. TAIPED values the two assets at a combined 180 million euros, most of which would come from the latter.
A few days ago another 300 properties were transferred to TAIPED’s jurisdiction, which now controls a total of 595 properties. A further batch of real estate assets is being prepared for transfer to TAIPED in order to satisfy the country’s obligation to its creditors for the transfer of 1,000 state properties to the fund by the end of 2013, according to the terms of the memorandum Athens has signed. |
|
| |
| |
|
|
ekathimerini.com , Thursday October 24, 2013 (22:24)
Cyprus central banker faces fresh pressure over bailout
The embattled head of Cyprus's central bank was plunged into a new controversy on Wednesday after lawyers alleged foreign consultants employed to help with an international bailout of the country earlier this year were seeking fees of nearly 5 million euros (4.2 million pounds).
Lawyers working for the central bank said the consultants were seeking a fee based on a percentage of the amount raised from the recapitalization of Cypriot banks in a bailout deal last March.
The fee arrangement sparked sharp criticism of central bank governor Panicos Demetriades from members of his own board, because of the controversial nature of the recapitalization itself.
Earlier Cyprus's president said last Thursday he would press ahead in seeking the removal of Demetriados as the bank's governor after his handling of the bailout last March was sharply criticized.
Cyprus teetered on the brink of financial meltdown earlier this year after the island was forced to close a major bank, and seize savings in another bank to qualify for a 10 billion euro international bailout.
A recapitalization of Cyprus's key lender, Bank of Cyprus, which was almost decimated by its exposure to debt-crippled Greece, was possible only after major depositors' savings were seized, a move unprecedented in the history of the euro zone debt crisis.
Central bank board members said that consultants Alvarez and Marsal, contracted by the Cypriot central bank to advise on the restructure of the island's hobbled banking system, were seeking an additional payment over their standard pay, citing a purported deal with the central bank boss which board members said they knew little about until this week.
"The whole issue is pretty outrageous," a member of the central bank board of directors told Reuters. He and other directors were only fully informed of consultants' terms on Wednesday after a report compiled by the bank's solicitors, he said.
Demetriades was already at the centre of a storm of criticism on the Mediterranean island for the way he steered Cypriot banks through the crisis, with critics pushing him to resign.
The former economics professor, under fire for most of his tenure since taking office in May 2012, said in an interview published as recently as Monday that he does not intend to resign.
In a deeply unpopular move, hundreds of Cypriots lost their life savings when funds in Laiki Bank, which folded in the 10 billion euro bailout, were lost. Savers in Bank of Cyprus BOC.CY saw 47.5 percent of deposits exceeding 100,000 euros seized to refund that bank.
The process was a painful one, but aides and Demetriades himself have in the past said the system was taking excessive risks, hinting at previous poor regulation.
Asked whether Demetriades planned to quit, a senior central bank source who asked to remain anonymous told Reuters: "There is certainly a well orchestrated, government-led, campaign that not only undermines central bank independence but is aimed at forcing the governor to resign."
"What we are witnessing in Cyprus is a dangerous precedent for a euro area country."
According to a document prepared by external lawyers of the Cypriot central bank and seen by Reuters, Alvarez and Marsal are seeking a recapitalisation fee" of 4.75 million euros as a payment from Cypriot authorities.
A spokesperson for London-based Alvarez and Marsal, which advised the central bank on how to deal with the crisis and the restructuring of the banking system, declined comment.
A legal report seen by Reuters and compiled by central bank legal consultant Alecos Evangelou, a former Cypriot justice minister, says Alvarez and Marsal agreed with Demetriades a fee of 10 basis points 'of the total gross capital benefit into the banking system'.
An attached letter to the lawyers' report, purported to be from Alvarez and Marsal to Demetriades, makes such a reference. Demetriades has not publicly specified the terms of the arrangement.
The fee would be payable on October 31.
Bank directors were previously under the impression that any financial demands from the consultants would be on the basis of a fresh recapitalization of funds.
But that option of fresh funds was eventually not applicable in Cyprus's case where money came from depositors which represented a "bail-in" of existing bank funds ploughed back into the system, the board member who spoke to Reuters said.
Cyprus's central bank has not denied the existence of financial demands by the consultants. In a terse statement on Wednesday, it said its lawyers believed payment of any additional fees was not justified.
Demetriades, a member of the European Central Bank governing council was appointed by Cyprus's former leftist government last year.
Last week, the island's conservative president said he was talking to government lawyers on how to get Demetriades removed from his position, claiming he was not up to the job.
The lawyers document seen by Reuters said that the consultants' requested fee should not be paid because the recapitalization of the banks came from a 'bail-in'.
When four directors asked to meet Demetriades at a board meeting on Wednesday, he asked for a postponement until Friday, two board members said. [Reuters] |
|
| |
| |
|
|
ekathimerini.com , Thursday October 24, 2013 (10:43)
Fresh rise on bourse in spite of bank drop
Although banks headed south on the Greek bourse on Thursday, the vast majority of stocks posted gains that increased as the session progressed, putting Wednesday’s correction behind them.
The Athens Exchange (ATHEX) general index closed at 1,174.41 points, growing 1.56 percent from Wednesday’s 1,156.36 points. The large-cap FTSE/ATHEX 25 expanded by 1.53 percent to end at 391.43 points.
Energy and mining stocks outperformed, with Terna Energy adding 8.38 percent, Mytilineos rising 6.70 percent, Viohalco advancing 6.45 percent and Marfin Investment Group climbing 5.73 percent.
National Bank suffered losses of 4.60 percent.
In total, 96 stocks went up, 46 dropped and 20 stayed unchanged.
Turnover was the lowest of the last five sessions, amounting to 112.5 million euros, down from Wednesday’s 133.3 million. |
|
| |
| |
|
|
|
|
|
|
|
|
|
|
|
|
Worse still for Prime Minister Smarterarse, Little Olli Reindeer (left) says the relief isn’t coming at Christmas after all. You see Santa doesn’t come down the chimney for naughty boys who tell fibby-wibbies about Golden Dawnies and debty-wetties. At least, this is the only conclusion one can reach after hearing about Olli Rehn’s utterances yesterday. Ekathimerini this morning reports that Rehn confirmed in Lithuania that it won’t happen until summer 2014. We have a Syriza MP to thank for asking the Big Question:
Thanks for your great information, the contents are quiet interesting.I will be waiting for your next post.
ReplyDeleteBuy property in Hurghada