http://www.zerohedge.com/news/2013-12-16/lack-cash-flows-ends-greek-export-miracle
Lack Of Cash Flows Ends Greek Export "Miracle"
Submitted by Tyler Durden on 12/16/2013 07:59 -0500
While cash flows may be an anachronism in a time when the return of the dot com bubble means only future corporate prospects of growth matter, and the lower the actual profits or earnings the greater the upside stock potential due to ridiculous future PE multiples (flashing back to the year 2000), for some the lifeblood of success is still dependent on cash flow. Or the lack thereof. Such as Greece, where a brief episode known as the "Grecovery" driven by a recent export surge was put on indefinite hiatus where as Kathimerini says "
exports run out of steam due to cash flow problems." It explains: "The rise of Greek exports sadly proved short-lived, as the momentum observed in the last couple of years has all but vanished. Exporters estimate that 2013 will end with a rise of 3 to 4 percent. But that figure includes fuel products, and when they are taken out of the equation
it turns into an annual drop of 2 to 3 percent."
The loss of momentum is due to the cash flow problems Greek enterprises are facing, which are preventing them from reaching out to new customers. External factors also play a role: According to World Trade Organization estimates, the growth rate of global commerce will drop to 2.5 percent this year from an original forecast for 3.3 percent.
“Even if we had large orders we would not have been able to fulfill them,” an exporter says. Acquiring raw materials from abroad remains difficult while the high energy costs are a major obstacle. The latest data from the monthly PMI index issued by Markit show that the inflow of new orders from abroad declined in November for a third consecutive month.
It's always something. And better to have bled cash and exported than never to have exported at all, or whatever the saying is in a day when liquidity injections and made up trade data between China and Hong Kong mask the global trade flow contraction shown best by the following IMF chart "forecasting" future trade growth. Or the lack thereof.
Additional news of note for Greece.....
Health workers about to be placed in mobility scheme
A total of 8,691 doctors and employees of EOPYY, the country’s main healthcare provider, and about 1,200 hospital staff are to be inducted into the second wave of a contentious mobility scheme that will see them being absorbed by the National Health System (ESY) or dismissed.
The government’s first step will be to scrap the positions in EOPYY. This requires a ministerial decision which, Kathimerini understands, is expected by the end of the year. The transfer then should be completed in less than 25 days.
A total of 1,089 EOPYY staff in the central administration and employees at the agency’s 26 pharmacy shops have been exempted from the mobility plans.
Some 1,200 ESY staff, mostly drivers and auxiliary workers, are also set to join the mobility scheme, which has sparked protests and rolling 24-hour strikes. |
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ekathimerini.com , Saturday December 14, 2013 (18:06)
Greece close to deal with troika on EAS that would secure 1-bln-euro tranche
Greek government officials had what they called “constructive” talks with troika officials over the weekend regarding the future of Hellenic Defense Systems (EAS) but were not able to bridge their differences over home foreclosures.
A Finance Ministry official told Kathimerini that he would be “surprised” if an agreement on EAS is not reached by the end of Monday.
Greece is due to provide on Monday a month-by-month year-long plan for a streamlined version of EAS. This will then be sent to the Euro Working Group, which will advise the Eurogroup, which meets on Tuesday afternoon, on whether the 1-billion-euro subtranche outstanding since the summer should be released.
If things go according to plan, the European Stability Mechanism would transfer the money to Athens on Thursday.
However, Greece and the troika remained some distance apart on the home foreclosures issue, according to a Development Ministry official. The sticking point appears to be the exact criteria that will be implemented to protect some homeowners when the moratorium on foreclosures expires at the end of the year.
Two other issues that remain unresolved are what will happen to VAT in the food service sector and a difference between the two sides over how much the new property tax will bring in next year.
On VAT, there is still no agreement between Greece and the troika on whether the temporary reduction to the levy at restaurants will be made permanent or not.
As for the property tax, Athens believes it will generate 2.65 billion euros in revenues next year. The troika believes Greek authorities will collect no more than 2.33 billion. |
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ekathimerini.com , Monday December 16, 2013 (11:06)
Report questions transparency of troika's use of financial consultants
An article by the Brussels-based EU Observer has raised questions about the way that the troika awards contracts to consultants.
According to the publication, taxpayers in Greece, Ireland, Portugal, Cyprus, and Spain have already paid over 80 million euros in fees for financial consultants.
“They are often hired without a public tender, posing questions on transparency and accountability,” says the report.
The article refers to a 12.3-million-euro contract Greece has given to US-based Blackrock Solutions and similar deals for major consultancy and audit firms in other countries that have been bailed out.
EU Observer alleges that in Cyprus, Alvarez and Marshall received a bonus amounting to 0.1 percent of the 15.7 billion recapitalization costs of local banks. In correspondence, Cyprus’s central bank chief, Panicos Demetriades claimed he agreed to the bonus “under duress”.
The deal is being investigated by Cypriot Parliament. |
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Submitted by Tyler Durden on 12/16/2013 07:59 -0500
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