MILAN – Greece will send a letter to the president of the Eurogroup, Jeroen Dijsselbloem , with the request for an extension of six months of the program aid. This was announced by the government spokesman, Gabriel Sakellaridis on TV Antenna : “The Minister of Finance, Yanis Varoufakis , will send the request for extension of the loan program,” did know. To those who asked him if the text rejected the Eurogroup will form the basis of the request, the spokesman has sent to the contents of the letter. “The resolutions – he added – link to find common ground, I think we are making good progress. We come to the table to find a solution.” Athenian government sources have also stated that the actual request will arrive tomorrow: will cover part of the agreement on the granting of loans, and reject the extension of the comprehensive rescue program signed w ith the Troika.
That’s tomorrow, as reconstructs Republic , will be a request that follows the lines of the ‘document Moscovici’, the statement that the French commissioner had presented to the Eurogroup but that was later replaced by the President Dijsselbloem in a much tougher towards Greece, which led to the refusal by Varoufakis same. For the premier greek, Alexis Tsipras , at this point we reached the turning point: “We are at a crucial point – he said – with these negotiations, we have sent suggestions and we hope to overcome the obstacle “. “There have been protests – he said – in Europe to support the moves of Greece and for the first time we contacted European leaders to create a positive atmosphere to our requests.”
The question is – in some ways – lexical. He also said the vice president of the EU Commission: “What is clear is that within the eurogroup the way is an extension of the aid program in progress, then there will be flexibility to discuss the conditions,” he Vladis Dombrovskis explained. “We want to see the first document of Greece and what it requires and it is only then that we will be able to comment,” he noted. “It all depends – he continued – by what you mean by ‘financing program’. There are different interpretations. It will depend on exactly what meaning and substance will be put in the formula used.” In the European program of financial support “there are funds available – he said – and if Athens wants them must complete it and extend it.” In essence, it would be difficult to give the loan but do not continue on the path of austerity indicated by EU, ECB and IMF.
Varoufakis tweets internal documents Eurogroup
The President of the EU Commission, Jean Claude Juncker made it known to be working “with the president of the Eurogroup, Jeroen Dijsselbloem to reach a ‘ extension of the existing program, in order to lengthen the time until the summer. ” Germany was rather clear: “The extension of the aid is inseparable from the implementation of the reforms.” And for the chancellor, Angela Merkel, “if some countries are in trouble, then we will give them our solidarity. But solidarity is not a one way street rather, with the efforts of countries, is one side of the same coin and will always so. “
And the standoff has taken the field also the US Treasury Secretary, Jack Lew , which has so far kept a very conciliatory towards Tsipras. In a phone call with Minister Varoufakis, Lew has pushed for work with Europe and the IMF. Because without an agreement there will be “very difficult” in Athens, explains a note from the US Treasury. “The uncertainty is not good for Europe,” said Lew, creeping up the greek colleague: “It ‘s time to move on to the facts.” Also according to the rating agency Fitch , the “strategy brinkmanship”, used by Athens and its public creditors, has increased the risk of a new rating cut for the country. Reliefs to which Varoufakis precise via Twitter that “the Secretary of the US Treasury actually told me that no deal would damage Greece”, but “added that would damage Europe too. A warning to both parties.”
As he unravels the policy, the board of the ECB has decided to extend the program of support to Greek banks for another two weeks. This is called Ela (Emergency Liquidity Assistance), through which the Central Bank of Athens will finance banks in the country, at a rate of 1.55% (rather expensive) but without requiring the submission of adequate collateral. Last week, the ECB decided to raise the program 60000000000-65000000000. Today the new emergency loan approved by the Governing Council: the ceiling was further increased to 68.3 billion euro for the duration of two weeks. The ECB therefore does not close the taps Ela (emergency liquidity assistance), as feared by many analysts. If the ECB staccasse plug prohibiting institutions Greek access to channel liquidity emergency, the Greek banking system might collapse.
ECB, that those who vote
If most Analysts speculated a no from the ECB was mainly because the decision appeared very ‘political’ and around the table of the Council Eurotower pressures not to increase the liquidity available to the Hellenic institutions are still strong, especially from Germany. Only yesterday the head of the Bundesbank, the hawk Jens Weidmann , recalled that the misuse of the channel Ela could be configured as a loan to the State greek, which mandate the ECB can not possibly do. The game today remembered that prior to the launch of the Quantitative easing . Eventually, though, the board seem to have prevailed doves.
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