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17.04.2017 - 12: 12

Greece continues to be in a position to preddefoltnom

The economic situation in Greece is becoming harder. If the situation can not be resolved in the near future, in the summer can begin a new round of financial crisis.

Greece runs the risk of once again plunge into the default state. Individuals Greece hastily withdraw money from the accounts, the government can not agree with its international creditors on the allocation of the next tranche of aid, and on July 1 7 payments become due billion euros to the International Monetary Fund. In return, the potential lenders require new reforms and austerity measures.

According to Bloomberg, since the beginning of the year more than 2017 3,6 billion euros were withdrawn from bank accounts - cashed or transferred to foreign banks. Agency sources said that the stock of banknotes decreases with each passing day.

Because of these problems, the European Central Bank for the first time decided to increase the liquidity of the ceiling under the emergency aid program in Greece over the last year and a half (Emergency Liquidity Assistance, ELA).

At a meeting of finance ministers of the eurozone countries in Malta in April 7 the dominant theme again was the policy in relation to Greece. As before, the main differences between Greece and creditors are to what reforms and what rate should be carried out to Athens.

"The Eurogroup stresses the need for further efforts to complete the report on the progress of reforms. The parties reaffirmed their commitment to this task, "- said in the final statement of the Eurogroup.

Finance Minister Greek government Tsanakopulos Dimitris (Dimitris Tzanakopoulos) states that Greece is interested in reaching an agreement as soon as possible. "This is our main goal, we strive to reach an agreement in April," - said the Minister. But that conflicts can be resolved so quickly, it's hard to believe, because the agreement had to be reached as early as the end of last year.

Talks between Greece and its international creditors come with a lot of stress for more than three months, regularly interrupted due to differences on the labor market reforms of pensions and the privatization plan, on which lenders insist.

Analyst Pantheon Economics Vistesen Klaus (Klaus Vistesen) believe that the Greek economy is now saddled with the supervision of the EU, it does not receive any benefits of the monetary union, says The Business Insider.

"Insoluble aspect of Greece is that its economy is too small to cope with the amount of debt that asking her to pay" - he told the publication. The main problem the analyst including large pension payments in Greece.

"Although the government Alexis Tsipras (Alexis Tsipras) conducted a series of economic reforms and privatized some industries, Tsipras had not moved the ball rolling in terms of reduction of pensions. They constitute 13,3% of Greece's GDP - much more than in other countries ", - says Vistesen.

The federal government insists on the participation of the International Monetary Fund (IMF) loan program, but excludes the requirement of the IMF with respect to debt relief. But German Finance Minister Volfgang Shoyble (Wolfgang Schäuble) is going to talk about it only in the summer 2018, after completion of the current aid package. Still remains an open question whether the IMF and the Berlin agreement reached. Berlin insists that the IMF supported the third loan, while the Foundation named as a prerequisite for the restructuring of the Greek debt.

During the meeting in Malta and on the background of progress in the negotiation process of the agreements and unresolved disagreements followed by a meeting of Angela Merkel (Angela Merkel) and the head of the IMF.

On Monday, German Chancellor Angela Merkel (Angela Merkel) hosted in Berlin, the head of the International Monetary Fund Christine Lagarde (Christine Lagarde) for talks that are expected to focus on the long term relief of the Greek debt and on the participation of the IMF in the third international financial aid to Greece.

On the eve of the meeting German Finance Minister Volfgang Shoyble in his comments Deutsche Welle sought to downplay differences between Berlin and the IMF on Greek debt, noting that it's natural, "when we try to figure out how it will evolve to 2070 - end up with different conclusions" .

Schaeuble reiterated that the Greek program "can move forward only with the participation of the IMF, which is a part of it. Otherwise, we and other countries should refer to our Parliament, to get a mandate, which will negotiate on the program without the IMF, but such a prospect would be completely absurd and does not work. "

The crisis in Greece stretches from 2008 years. During this time one year was recorded when the GDP went into a plus (2014, + 0,4%). In the past year, according to Eurostat, the Greek economy growth was zero. Unemployment in the country is not only declined from a peak of 27,5%, but remains the highest in the EU: 2016 year its level was 23,5%.

A source: Russian Germany

Author: Elizabeth Gorbachev

Tags: Greece's economy, defaults, debts, Germany