Best Italia Economy Portal: Greece, serious default risk

Tsipras, continues to tratatre, focuses on political agreement

Probable control over transfers and funds deposits

21 / 05/2015, 24:27

Athens- Greece threatens seriously the default if no effective measures will be taken soon. The admissions come directly from members of Syriza which, announcing that if the government will not have the new aid, will not refund the 300 million euro that should the IMF on June 5. A fear already mentioned in recent days, that
apparently seems to take shape as the decisions of the government are the ones you want to pay salaries and pensions, because the citizens expect more of the international creditors. A nothing is served then the intervention of the ECB which has aumenatto 200 million euro emergency liquidity to banks (Ela) postponing any close sull’haircut, the ‘discount’ on the value of Greek bonds, the situation is so critical that the German Finance Minister Schauble does not rule out a failure and Moody’s sees “high” the possibility of a freeze on bank deposits. Tsipras is not discouraged and now focuses on a political agreement in Riga, where he will attempt to adjust asking a debt restructuring by presenting his plan to Merkel, Hollande and Juncker. The
technical negotiations according to European sources, would be resumed after a break of a few days, but things seem to be moving. The proposals were presented to the Brussels Group cover three main points: pensions, the labor market and a simplification of VAT, with two rates. That seems to have been already criticized on VAT, then the government would be thinking a substitute measure: a tax of 0.1-0.2% on banking transactions (excluding ATM withdrawals and card payments) According to Bloomberg, creditors would open to a compromise on the minimum wage which Tsirpas want to increase, but would consider a pension reform unavoidable. At this point the real negotiation is political and it is up to Tsipras, who today and tomorrow will try to build on other leaders during the summit on the

Eastern Partnership of Riga. Tonight the greek prime minister will meet in a bilateral summit Merkel, his goal is a comprehensive agreement that will put an end to austerity and includes a solution on the debt. One issue that does not agree with soprottuttoi creditors, since the agreements of 2012 provide that if you go back to talk only a votla to be concluded the current bailout program. The solution has to come before 5 June or for Greece is likely to default inevitable. The issue is serious, there are no funds to repay the huge loan of the IMF, said Nikos Filis spokesman of the parliamentary group of SYRIZA. In this difficult situation it seems to be more of a push and pull between Greece and Germany. Meanwhile, weighs the statement of Moody’s said that the outlook for Greek banks are negative, according to the liquidity problem. Pe prevent tension in the next 12-18 months will increase in Greek banks, it is considering to submit for transfers and the freezing of deposits.