The marathon race continues for an agreement which will unlock further vital financing to Greece on time to avoid a potential bankruptcy and Grexit, as the country runs out of time and cash.
After three months of tough negotiations, Athens and international creditors still hold diverging views on the extent of measures that need to be taken to meet fiscal targets and push pension and labor reforms, as well as privatizations, according to Greek government sources.
Greek Finance Minister Yanis Varoufakis told media in Brussels on Monday that a mutually beneficial agreement with the institutions is feasible within the next few days.
According to government sources, a breakthrough could come at an emergency Eurogroup which could convene later in May.
"We welcomed the progress that has been achieved so far. At the same time, we acknowledged that more time and effort are needed to bridge the gaps on the remaining open issues," a Eurogroup statement said.
"Once the institutions reach an agreement at staff level on the conclusion of the current review, the Eurogroup will decide on the possible disbursements of the funds outstanding under the current arrangement," the statement added.
The pressure on the Leftist Greek government in the meantime is mounting. The Greek national news agency cited government sources as saying the Finance Ministry ordered the payment of a 750 million euro (837 million U.S. dollars) installment to the International Monetary Fund due on Tuesday.
However, government officials have added that available funds were running perilously low and that Athens would face a great challenge paying pensions and wages of civil servants in the coming weeks.
The umbrella union of civil servants ADEDY staged a rally in central Athens on Monday during the Eurogroup talks "in protest of creditors' insistence on austerity policies that have been proved destructive for Greek society over the past five years," according to a press statement.
Protesters called for "a debt write down and a clear end to policies which lead people to extreme poverty," banners read.
Under the Feb. 20 Eurogroup agreement, Athens has until the end of June to strike a comprehensive post-bailout deal with lenders.
But concern has increased whether Greece will stay afloat till then without some sort of emergency short-term funding, such as a European Central Bank nod to Athens to sell more treasury bills in coming weeks to cover its financial needs.
Under the pressure of creditors for more painful measures on one hand and the pressure of Greek society on the other hand for some breathing space after six years of steep recession, the Leftist Prime Minister Alexis Tsipras who was elected in January on an anti-bailout platform needs to work hard to sell a difficult compromise to the parliament and citizens.
According to the latest opinion surveys, seven out of ten Greeks were in favor of an "honest compromise" with creditors rather than a rift.
But in case the content of the agreement will not be in compliance with the government's policy statements, more and more Greeks seem to welcome the idea of a referendum. Local media have already started referring to possible dates, starting from early June.
Speaking to media in Athens on Monday, Greek government spokesman Gavriil Sakellaridis strongly rejected a German media report that Greece was considering the scenario of a parallel currency. He did not rule out the prospect of a referendum, however.
"The government is not afraid of the people's will," he said.
Xinhua - china.org.cn
12/5/15
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Asian stocks edged lower and the euro sagged on Tuesday as insufficient progress on talks between debt-strapped Greece and its creditors kept investors on edge...
ReplyDeleteMSCI's broadest index of Asia-Pacific shares outside Japan was down 0.1 percent. Japan's Nikkei lost 0.3 percent and South Korea's Kospi dipped 0.1 percent.
In a closely-watched Eurogroup meeting on Monday, euro zone finance ministers welcomed progress in negotiations between Greece and its creditors but said more work is needed for a cash-for-reform deal.
"It acknowledged progress, but any further development will depend on a positive conclusion to a review of the current program. In other words, the story remains unchanged," Richard Cochinos, head of Americas G10 FX strategy at Citi, wrote in a note to clients.
While Greece said on Monday it repaid about 750 million euros to the International Monetary Fund, the absence of a clear breakthrough in negotiations made it an anxious wait for markets worried that Athens would eventually run out of cash and default on its debts.
"Barring an unforeseen shock, Greece should be able to carry on negotiations into June, but cash positions are low. Based on our expectations debts will have significant trouble being met beyond mid-June," Cochinos at Citi said.....http://www.channelnewsasia.com/news/business/international/asia-stocks-euro-falter/1840838.html
12/5/15
Greece tapped emergency reserves in its holding account at the International Monetary Fund to make a crucial 750 million euro ($839 million) debt payment to the Fund on Monday, two government officials said on Tuesday...
ReplyDeleteWith Athens close to running out of cash and a deal with its international creditors still elusive, there had been doubts whether the leftist-led government would pay the IMF or opt to save cash to pay salaries and pensions later this month.
Member countries of the IMF have two accounts at the fund - one where their annual quotas are deposited and a holding account which may be used for emergencies.
One official told Reuters that Athens used about 650 million euros from the holding account to make the payment.
"We made use of money in our holding account in the fund," the official said, declining to be named. "The government also used about 100 million of its cash reserves.".......reuters.com
12/5/15