VIDEOS – Creditors have proposed in Athens 15.5 billion euros in loans and a five-month extension of the rescue plan, provided that the country submits to an agreement on its budget consolidation and deemed necessary reforms. Tsipras will hold a referendum on the bailout plan
From our correspondent in Brussels,
Greece can see light at the end of the tunnel: the creditors have offered 15.5 billion in credits and a five-month extension of the bailout, provided Athens folds agreement remained far out infringement on its fiscal consolidation and reforms deemed necessary.
This breakthrough of the former Troika has not relaxed the heavy atmosphere of the negotiations on the eve of what could be the last closed session of ministers of finance of the euro, before Greece is found in default. Prime Minister Alexis Tsipras ignited against “ultimatums and blackmail” from European partners.
Greek Prime Minister Alexis Tsipras account about him organize a referendum on the draft agreement, reported Greek television channel Skai TV Friday night. Tsipras, who convened an emergency the same day a council of ministers must speak to the press shortly
of anonymity, a senior official replied him clearly. The party must “to be completed in the coming hours” and the absence of agreement in the day, the Eurogroup will discuss Saturday night a “Plan B” and closure of Greek banks on Monday. A monetary official confirmed the agenda. Other European leader seeking reconciliation, Jean-Claude Juncker has tempered the chances of a breakthrough this weekend: “I’m not very optimistic,” he told the Le Figaro .
The offer of creditors, described in a negotiation document answers a question that Alexis Tsipras has long described as a sticking point: what will happen after June 30, when will expire on double funding plan approved in 2010 and 2012? The offer, if realized, would also address a burning issue: payment, also on June 30, with a maturity of 1.5 billion due to the IMF. Without this repayment Greece could end up in arrears or in default, an unprecedented situation in the euro area.
tempting it may be, this is a proposal and not not an agreement. To achieve this, the Government should accept Tsipras tomorrow (Saturday) the other conditions imposed by creditors. In particular the return to a primary budget surplus of 1% this year (excluding debt service), drastic savings on pensions and a general increase in VAT. Leaving a European summit haunted by the Greek crisis, Chancellor Angela Merkel urged the leader of Syriza not to reject “the offer exceptionally generous” of its European partners
Behind the recriminations of the past hours, the positions on this program have come together, at least on the figures, it is said on the sidelines of the negotiations. A brief conversation between Alexis Tsipras, Angela Merkel and Francois Hollande on Friday morning would have reflected the thaw, according to the same sources. But the deal is far from sealed.
In case of agreement, public creditors propose to tap into existing envelopes without opening new lines of loans. Twenty billion are in store for Greece: 7200000000 suspended by the EU and IMF last August, 10.9 billion still unspent appropriations for the recapitalization of Greek banks and finally around 2 billion profits made by the ECB through repo of Greek securities. The proposed 15.5 billion would be disbursed in five installments until November, with every step of the detailed conditions of the Greek side.
The calendar is jostling. To avoid double blade of Tuesday, June 30, the economic and financial agreement should always be politically validated by the 19 capitals. First by the Greek parliament, which could be done on Sunday. But also by several European parliaments, including the German Bundestag, maybe Monday. All eyes are now turning to the Eurogroup Saturday night, starting point of a sequence perhaps decisive
VIDEO -. According to Angela Merkel, “the Eurogroup Saturday will importance decisive. “
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