10/21/2011Greece needs more funding
The aid package is not enough for Greece, Athens needs more support from partners and banks than previously calculated. This is evident from a statement of € Treasury. The long-term prospects are bleak for the country.
Brussels - Specific numbers were not disclosed. But it is clear that Greece's financing needs remain high. Even in July, the international donors had assumed that a second package of 109 billion euros of sufficient public funds. In addition, banks and insurance companies should at up to € 50 billion contributing to the rescue.
Now it's out of the Euro Group: Athens needs far more financial partners and banks than previously calculated. This is a statement from the Treasury on Friday € forth in Brussels. Now another rescue package will be put together, the new program would "combine the additional public funding and private sector participation," it said.
The communiqué from the group for just € grant aid payment in the amount of eight billion euros shows that Greece continues to face major "economic challenges" stand.
These conclusions, the EU financial policy based on the fifth report of the so-called troika group. This is composed of experts from EU, International Monetary Fund ( IMF ) and European Central Bank ( ECB ) together.
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Since the fourth report, the overall economic situation of the country have continued to deteriorate. At the same time welcomed the Euro Group, the "substantial efforts" of the Greek government to consolidate the economy, which would allow that Greece reach the goals set for 2012. In its statement called on the EU policy makers on the Greek leadership to make further progress in implementing structural reforms and the privatization program.
Total debt in 2020 at 152 percent
The long-term prospects for Greece, however, are more grim. Without drastic change of course in Athens, according to calculations by the Troika is the earliest in ten years can resume even money on the financial market. On the maintenance of the course would be the total debt in 2020 at 152 percent of economic output are, says the Troika report on debt sustainability in Athens, as the news agencies informed DAPD on Friday night from learned circles. The meeting in Brussels Finance Minister had received the report until the afternoon.
The calculation is based on realistic assumptions for economic growth and privatization proceeds. The report makes clear, that is necessary to more rapid debt reduction, a higher contribution of the banks. Berlin wants to push the debt Athens in 2020 to 120 percent. "That should be the goal," said a senior government official.
The private creditors want to date a waiver voluntarily participate in Greek government bonds by 21 percent in the second rescue package for Athens. This was agreed in July. The policy passes but a higher proportion. Meanwhile, debt is also a cut of up to 50 percent of the speech.
The Treasury had previously prevented bankruptcy of Greece again. On Friday evening they released the next loan payment in the amount of eight billion euros in Athens, as diplomats, according to German Press Agency reports on the edge of the €-group discussions.
The tranche consists of funds from the euro countries and the IMF. IMF chief Christine Lagarde wants, according to news agency AFP the Board of the International Monetary Fund also recommend the release of the next aid payment for Greece. There were indications that the IMF Board should decide now officially in the first half of November on the disbursement of money. To the transfer in the amount of eight billion euros controls the IMF at about 2.2 billion €. The cash injection comes from the old utility with loans of 110 billion €.
According to the "Bild" newspaper feared donors Greece that Athens had for many years to depend on international financial drip. The report of the troika experts it hot, Greece will not, despite the billions of aid itself again before the year 2021 can raise capital in financial markets. This passage of the report to "debt sustainability" was not yet known
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