Friday, June 26, 2015

Greece, Tsipras: “No to the proposal of the creditors, offer inadequate” – The Daily

->

German Chancellor Angela Merkel was “exceptionally generous offer” that Athens would have to accept. But Alexis Tsipras will say no: the proposal of the international creditors to extend by five months the current bailout program of Greece, which expires on June 30 that would have resulted from the rest of the delivery of the last tranche of aid from 7.2 billion, so that the country can repay the debt maturity from 1.6 billion to the IMF, is an offer “inadequate” because it would deepen the recession.

He said a government official greek, stressing that the proposal of the former Troika is to launch yet “deeply recessive measures as a condition for a loan of five months,” condition “that is believed inadequate”. The official, agency reported Reuters , stressed that the greek government “does not have the popular mandate, nor the moral right to sign for a new rescue plan.” He added that the passage of the greek debt to European funds rescue, proposed by Athens, has been rejected by the institutions.

The news of the proposal of the creditors was leaked shortly after the call, on Saturday afternoon in Brussels , a new meeting of ‘ Eurogroup extraordinary on Greece. The finance ministers of the euro will meet again for the fifth time in ten days to try to reach an agreement on the reform plan of Athens. Friday, during his meeting with the German chancellor, Angela Merkel , and French President, François Hollande , the greek prime minister reiterated the frustration of the Greek Government for the measures austerity demands of international creditors. The two leaders for their part have been pressuring Tsipras Athens Eurogroup to agree a deal on Saturday in exchange for aid. Even if a government official had told greek hot that the prime minister “does not understand the insistence of institutions to these tough measures.”

The creditors have submitted to Greece “exceptionally generous offer” Athens accepts it had then commented Merkel: “We have taken a step in the direction of Greece – said – now it is the turn of Greece to step identical”. In practice, the proposal which, according to the ‘ Handelsblatt provides a third rescue package with a total funding of 15500000000 , was presented like a breath of fresh air waiting for a stable agreement. The other side of the coin is that in a situation in which the negotiations between the former Troika and Greece has stalled, international creditors have no interest or intention of permanently cut the thread with Athens. Or at least not to be the ones to cut.

According to the rating agency Fitch the prolongation of the negotiations is evidence of the political will to reach an agreement, but the terms often conflictual discussions are added to the risks on the credit profile of the greek sovereign debt and its banks. “A deal could alleviate the short-term risk of a default unchecked and a possible exit from the euro zone – says the agency – but would arrive only a few days before the expiry of the existing program which is scheduled for June 30 “. Fitch also points out that the translation of an agreement at the last minute in formal agreement will then request the ‘ parliamentary approval greek and some other parliaments of the euro area (in particular the German Bundestag), as well as the rapid legislation reforms by the government greek with some members of SYRIZA expressed their opposition to parts of the proposals this week, such as those on pensions, changes in tax and public sector wages. “A division in the greek government, the risk of a referendum on any proposed agreement or early elections could delay further formalization of the Agreement and therefore the release of new resources,” says Fitch.

Meanwhile surprise has come forward, the Chinese government saying he was ready to help pull Greece out of crisis so that it remains in the euro. He said the Deputy Foreign Minister Wang Chao, without specifying what kind of assistance Beijing would be willing to give in Athens, nor what it would in return. “Greece is at a crucial stage – said Wang – and China want me to stay in the European Union. We will contribute to make this happen. ” Chinese Premier Li Keqiang will meet next Monday in Brussels with the leaders of the European institutions as part of a new EU-China summit .

->

LikeTweet

No comments:

Post a Comment