Business
Wednesday July 1, 2015
finance ministers hold meeting
Jeroen Dijsselbloem, head of the Eurogroup
The finance ministers of the euro area decided Wednesday to postpone until after Sunday’s referendum in Greece any negotiations with Athens, he said Slovak Minister Peter Kazimir.
“The Eurogroup is united in its decision to await the outcome of the referendum in Greece before further negotiations”, Kazimir wrote in Twitter.
The head of the Eurogroup, Jeroen Dijsselbloem, said Wednesday that saw “little chance” of a breakthrough after recent comments from the Greek Prime Minister Alexis Tsipras.
Less than 24 hours after Tsipras said in a letter to creditors would accept an offer to redeem if some conditions were changed, said in a public speech that Greece is being “blackmailed”.
The Vice-President of the European Commission (EC) for the Euro, Valdis Dombrovskis said Wednesday that “We are now in a different process, not in the one we had last trading days before the expiry of” the second program Greek rescue.
The owners of Economy and Finance of the euro zone yesterday refused to extend the second rescue for Athens.
“Substantially’re in a different situation,” he said , while recalling that before there was talk of “expanding five, six, nine months the previous program,” while now discussing “a request from a two-year program in a different economic situation.”
“It is now substantially worse than last Saturday,” he said, in relation to the introduction of capital controls in Greece on Monday.
As regards the referendum called by the government of Alexis Tsipras on Sunday, Dombrovskis said the question asked him “is not really valid” because it “reflects a question about a program which it has expired. ”
“It’s more of a political signal,” he said, adding that a “yes” in the consultation support a “cooperation with Europe to find solutions.”
According to Dombrovskis, now after defaulting the IMF would be better if member states do not act immediately, and “wait until early next program decisions are taken”.
Upon expiry of the program of financial assistance to Greece, so it has made its last flight of 1,800 million euros, which is no longer available through the European Financial Stability Facility (EFSF).
In addition Athens did not pay the IMF 1,600 million that had to deliver dated June 30, which has fallen into arrears.
The Luxembourg-based institution said today in a statement that default by Greece to the IMF, “could also be a default for certain loans from the fund”.
It also indicated that in compliance with the rules of the Fund, its Managing Director, Klaus Regling, “must now inform the board of directors of EFSF that default and make a proposal in this regard from several options “.
Regling may propose now cancel the credit contract it had with Greece and ask that country immediate payment of principal and interest, according to the EFSF, which pointed to another option is that the agency ” irrevocably waive their rights and compensation relating to credit for this specific case. ”
According to the EFSF the third option that the body has to the default of Greece is exercising its reservation of rights, ie, that does not opt for either of the two above possibilities, and “the right of reserves act at a later stage. ”
The temporary fund program for Greece that began on February 21, 2012 and must terminate December 31, 2014, but was extended twice at the request of the previous Greek government.
During his term, the EFSF to Greece disbursed 141,800 million euros, of which 48.200 million were allocated to rescue and recapitalize the Greek banks.
In this latter amount not 10,900 million euros were used in bonds, which were returned to the Fund and the loans to Greece stood at 130,900 million euros, making Greece the largest debtor European fund.
The agency said it will coordinate its future decisions with Europgrupo as well as the EC and the IMF, while stressing that the decision not to pay Athens that payment “does not affect the ability of the Fund . to repay bondholders Investors know that the EFSF bonds benefit from a firm structure “
.
No comments:
Post a Comment