Wednesday, June 24, 2015

Further talks on Greek debt as default looms

A day of intense negotiations is expected ahead of a critical meeting of eurozone finance ministers in Brussels this evening.

It will assess whether an economic reform package proposed by the Greek government is sufficient to unlock billions of euro in bailout funds needed to avoid a Greek default and possible exit from the euro.

  • Despite optimism at an emergency summit of eurozone leaders on Monday that a deal would be reached this week, reports suggest there is growing resistance to the proposal both in the Greek parliament and within the International Monetary Fund.
There is still optimism that a deal can be reached this week that would pull Greece back from bankruptcy, but it is fragile.

The plan put forward by Greece on Monday, and hailed by key eurozone figures as a basis for a deal, foresees spending cuts and revenue increases that would raise around €8bn over the next two years.

  • There are plans to change the age of retirement, increase private pension contributions, and impose a range of taxes and levies on higher earning individuals and companies.
But Greek Prime Minister Alexis Tsipras is facing a revolt within his far-left coalition, with some members saying the deal is a capitulation and promising to vote against it.

Simultaneously, the IMF is reported to be unhappy that the plan relies too much on higher taxes and less on cutting government spending - it is concerned it will hamper economic growth.

Whatever eurozone finance ministers agree to tonight, it will have to be passed by the Greek parliament quickly - the deadline to avoid a debt default is next Tuesday.

Mr Tsipras will meet the heads of the IMF and the ECB, as well as the European Commission President, in Brussels today ahead of the eurogroup meeting.
  http://www.rte.ie/news/2015/0624/710264-greece/

24/6/15
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2 comments :

  1. La Grèce rejette «une contre-proposition» des créanciers...

    Le gouvernement grec a rejeté mercredi une contre-proposition soumise par les créanciers à Athènes, comprenant surtout des souhaits du FMI, a indiqué à l’AFP une source gouvernementale grecque.

    «Cette contre-proposition» qui insiste, selon Athènes, sur la hausse des recettes de la TVA et sur des coupes plus importantes dans les dépenses publiques, intervient deux heures après que le Premier ministre grec Alexis Tsipras eut déploré que le FMI n’accepte pas «les mesures compensatoires» proposées par Athènes lundi, lors d’une réunion des dirigeants des pays de la zone euro à Bruxelles, jugées alors positives par les créanciers.............lesoir.be

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  2. Greek Economy Minister George Stathakis has said on Wednesday that only "two or three" issues were currently holding up a bailout agreement with creditors...

    "The deadlock could be broken shortly," he said, in an interview with Greek network Mega TV.

    Two of the issues were long-term debt relief, a major sticking point for the creditors, and calculating value-added tax. "We achieved the most balanced agreement taking into account the circumstances," said Stathakis.

    The Eurogroup is to meet on Wednesday at 5 p.m. local time (1600GMT) to try to hammer out a final agreement.

    Greece will run out of funds at the end of the month, and the bailout will also end at that time. Greece must by the end of the month pay about $2 billion to the International Monetary Fund (IMF).

    The IMF, however, is reportedly not satisfied with current proposals for economic reform made by the Greek government. The agency finds them too focused on tax increases, and not enough on reforming expenditure.
    aa.com.tr
    24/6/15

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