WASHINGTON, Jun. 27, 2015.- In the hard bargaining to settle the Greek crisis, who it is who? Here the key actors in the tragedy of the Greek crisis.
INTERNATIONAL MONETARY FUND
The prime minister of Greece, Alexis Tsipras, accuses the IMF “criminal responsibility” in the suffocation of his country.
Meanwhile, the managing director of International Monetary Fund (IMF), Christine Lagarde criticized the lack of seriousness of Athens in the talks and said to reach an agreement, there needs to be “adult” in the meeting room.
The involvement of the IMF in European bailout programs is one of the conditions demanded by the eurozone severosde partners, especially Germany, to ensure that aid struggling partners include deep and verifiable reforms.
More than money, the IMF’s main contribution has been the design and monitoring of the necessary reforms to make debt sustainable and Greece’s economy competitive.
For the IMF, the Greek system such as pensions and raises still “unsustainable” and “insufficient” revenue.
Yet after five years of multimillion bailout programs, the Greek economy has contracted by 25% in the last five years.
The disbursements to help the Greek economy are made by sections and provided that the IMF for good progress made by Athens in the fulfillment of the agreed structural reforms, which means sharp cuts in public spending, especially in the pension system and tax increases.
On Meanwhile, the Greek Government undertakes to repay loans on time according to the agreed schedule.
Hence the importance of the deadline of June 30 when the executive must return Alexis Tsipras 1,700 million and date the Fund has insisted that it is immovable, so its failure to immediately declare Greece in default with the institution.
“The June 30 is when you need the payments to the IMF and not There is a grace period of two months as I have heard it said, “Lagarde said in Brussels this week.
EUROZONE
The euro zone faces the hour truth; Greeks must decide whether his country accepts the conditions of its financial rescue or otherwise, opens the door for leaving the euro.
In recent weeks, the euro partners have maneuvered “in extremis “to reach an agreement with Greece and avert a catastrophe, because for the first time really are threatening the principle of the irreversibility of the euro, in which confidence in the European single currency still young, born in 1999 is based.
In just ten days have held five special meetings of the Ministers of Economy and Finance of the nineteen countries that share the euro, and an urgent eurocumbre last Monday, which resulted summit “express” because, unlike all other meetings, is aired in two hours.
The negotiators have complained since February when it was agreed to extend the second bailout of Greece until this June 30.
They say that the Greek delegation did not come prepared to meetings. often sent without a mandate to make decisions, with delays on the schedule, no new proposals or with the same requirements without translation
fears a Greek exit from the euro have a contagion effect on other countries with high public debt and rising eurosceptic parties.
The leaders of the euro, more or less intransigent positions to Athens as with Austria, Finland and the Netherlands, more orthodox, or the most receptive France and Italy, trying to avoid break.
Therefore, supporting the latest proposal of the institutions to Greece which includes an extension of five months and enough to avoid bankruptcy the country funding, but has been rejected by Athens.
For the Greek authorities that proposal, which includes giving liquidity to fall by 15,500 million euros and avoid the absolute emptiness of their coffers, is objectionable because it would require to take “new measures that would cause a severe recession” as a condition for a “wholly insufficient” financing, according to sources of the Greek Government.
EUROPEAN CENTRAL BANK
The European Central Bank (ECB) has been all this time the real lifeguard who has kept Greece within the euro, provide their banks must not break liquidity.
The bankruptcy of the Greek financial system, much more than the accumulation of public debt, would have meant the immediate withdrawal of Greece from the monetary union.
Apart from Greek banks maintain a kind of assisted ventilation, the ECB has been at the forefront of the profound changes that have requested the architecture of the Eurozone to survive the Greek storm.
In particular, the launch of a program to buy bonds of states with liquidity problems -very questioned and even denounced the courts of Germany and the EU has been instrumental in containing the spread of the financial turmoil and restore confidence in the euro.
The ECB has been supporting Greece in particular through the program provision of emergency liquidity, whereby Greek banks can borrow emergency the Bank of Greece.
The maximum amount that Greek banks may ask the Bank of Greece, prior authorization of the ECB is now approaching 90,000 million.
The ECB support has served to the four largest banks in Greece have not already been declared bankrupt.
The ECB checked daily for a week this amount following the intensification of capital flight and the withdrawal of large amounts of cash in banks Greeks fear that the country may impose a “corralito” and end up leaving the euro area.
The strong deposit outflows from banks do still fear the imposition of capital controls in the country .
2014 unpaid yields of Greek bonds that the ECB has acquired through the first debt purchase program totaled 1,900 million euros.
The Central Bank Europe agreed to distribute the benefits of buying these bonds because they did not participate in the restructuring of Greek private sector debt, as it would have been state funding.
The ECB and the central banks of the euro area began buying in May 2010, under the chairmanship of Frenchman Jean-Claude Trichet, Greek sovereign debt that he could not be financed on the market at reasonable rates of interest.
The monetary institution has acquired, through this first debt purchase program, Greeks for a nominal value of 19,800 million euros and accounting for 18.100 million euros bonds and an average maturity of 3.5 years.
Although the shopping and stopped in March, this program ended in September 2012 when the ECB decided to start a second program to buy debt, which has never come to apply but it served to curb speculation in the market, which then penalized Spain and Italy.
Two months earlier, in late July, the ECB president, Mario Draghi, announced in London that the company was willing to do whatever was necessary to save the euro and “believe me, be enough, “Draghi said.
MLV
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