Papademos postponed meeting in Greece but negotiations are progressing
Best Growth Stock – Greek Prime Minister was due to end on Tuesday night the latest version of the new memorandum provides for reforms to be carried out in Greece, which was negotiated all day and will be finally proposed on Wednesday to the heads of the government coalition parties.
At the end of a day of general strike against austerity and when Greece is on the edge of the abyss and leaving the euro zone, the prime minister decided to postpone the Lucas Papademos Friday – “probably at noon” as his cabinet met with Socialist George Papandreou, the conservative leader Antonis Samaras and right-wing Giorgos Karatzaferis.
The endorsement of the three policy makers is explicitly requested by the public and private creditors to unlock the country’s second rescue plan vital to the country, providing both a financial and a remission of debt, which was prepared in late October in the euro area.
The deferral Papademos meeting with political leaders, originally scheduled on Monday, “is not a blocking signal, this was not anything dramatic, just a series of highly technical points to close it took longer than expected,” the source of the cabinet of Prime Minister.
At night, Papademos, appointed prime minister of a coalition in November, met with key leaders of the global banking lobby, the Institute of International Finance (IIF) Charles Dallara and Joseph Ackermann, to close the first points in a thriller major plan to remove debt from Greece, said the source.
This flurry of closed meetings a day of general strike against the new package of measures demanded by the European Union and the International Monetary Fund (IMF) in exchange for aid.
Under light rain, more than 20,000 people demonstrated in Athens and Thessaloniki to protest austerity measures that are being prepared and provide for a reduction in the minimum wage, cuts in pensions and 15,000 job cuts in the civil service.
“The situation reached its limit. Or are they jump, or us,” he said in the column of demonstrators Yorgos, a plumber from Athens. While Costas, a bank employee complained of seeing “sinking” his country.
Unimpressed by protest movements, the country’s creditors, whose patience is exhausted by repeated delays in implementing reforms Greeks, demanding an explicit commitment by the three government parties on this new purge to unlock the 130,000 million euros promised loans in late October and give the green light to start the restructuring of the Greek debt held by private creditors.
With Ackerman and Dallara, Papademos should pass in review the last items on hold for this operation, after the near completion of an agreement in late January. The discharge of 100,000 million in debt held by banks and funds, with a loss for these 70% would lead the Greek debt to a level of 120% of GDP in 2020.
During these negotiations, pressure from creditors on Greece did not give up.
German Chancellor Angela Merkel, supported by French President Nicolas Sarkozy and the head of the forum of finance ministers from the eurozone, Jean-Claude Juncker, proposed to establish an escrow account to ensure the efficient use of European funds granted to Greece.
Separately, the European Commissioner for Digital Agenda, Neelie Kroes, on Tuesday played down a possible serious departure from Greece in the euro zone, saying there was “no drama”.
However, the European Commission President Jose Manuel Barroso said shortly after Greece must remain in the Eurozone. “We want to follow Greece in the eurozone,” Barroso said in a press conference, following statements by Kroes.
Despite the social unrest and nervousness of the markets, Greece won on Tuesday put Treasuries to six months for 812.5 million euros at a rate in slight decline (4.86%) compared to the last issue similar .
If the expected agreement of the parties is concrete on Wednesday, the deal would be finalized by the Cabinet on Wednesday or Thursday, then presented to the Eurogroup.
Category: Business News
