BRUSSELS – First steps towards normality in Greece after weeks of uncertainty that has weighed on the citizens of Europe and scared the stock exchanges around the world. Athens received the bridge loan from the EU and has paid its creditors, IMF and ECB, taking off from the list of insolvent and confining the risk of default on those dark days that now seeks to put behind him. Even the Greeks are trying to return to life before the ‘No’, it will be a bit ‘more expensive than before the banks reopened, operations, although limited, resume, but you begin to deal with the increase in VAT which also has an impact on prices of basic necessities and then the pockets of consumers, the first to pay the price of the ‘salvation’ European.
With the 7.16 billion of euro received from Europe today , the Greek Government has reimbursed the two billion arrears IMF and 3.5 billion bond maturing today the ECB, it becomes 4.2 with interest. And there is still a small margin to be used for the financing needs until mid-August, when they will hopefully get the first aid of the bailout fund ESM. The road to get to the first disbursement of the third European rescue is still long, even if you are on a fast-track given the poor state of the economy and the urgency of deadlines. The next, from 3.5 billion with the ECB, is July 20.
The process was set in motion, and now awaits the Troika convened by the Greek Government to be able to return to Athens to negotiate together next Memorandum. Once finalized the document will be submitted again to the Eurogroup and then again to the six national parliaments that have to express themselves on all matters related to the budget, and therefore also on decisions involving the fund for the eurozone bailouts ESM. The transaction is expected to take two to four weeks, and is playing much on the right foot, sources said the European optimistic on the continuation of the negotiations. In an atmosphere of renewed mutual trust, Sunday afternoon has already held its first teleconference between representatives of the Troika and the government’s greek.
Despite the faces are the same, and coordinator of the Troika remained that Declan Costello hated the Greeks, the exchange has allowed to develop even the text of one of the two laws requested by the EU Parliament will have to approve Wednesday, that the transposition of the Directive on the ‘resolution’ bank. The other law is the approval of the Code of Civil Procedure, which is also already in the works. Even markets sniff optimism: the negotiations, helped by the opening on the debt by Merkel, also loosens tensions in the markets for the first time since the end of May the yield of 10-year BTPs back below 1, 9% (1.89%) and the spread between BTP and Bund is narrowed to 110 basis points.
While in Brussels and Athens is set in motion negotiations on the ladder of reforms to be implemented to achieve as hand tranches of aid, the Greeks can return to their banks, he closed since June 27. No chaos at the counters, because the operations are limited: you can withdraw a maximum of 420 euro per week, which is equivalent to the roof of the 60 euro daily withdrawal from ATMs that have been granted in 23 days of closure of the branches. But will weigh rising prices: VAT is increased from 13% to 23% of certain types of meat, oil (not olive oil), cocoa, salt and vinegar, flowers and wood, fertilizer, insecticides. And then the restaurants and cafes, taxis, funeral and language institutes. Public transport will increase next month.
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