The Greek Finance Minister Euclid Tsakalotos Christine Lagarde sent a letter requesting “a new loan from the International Monetary Fund” to Greece. The timetable is extremely tight.
In this Friday formally requesting assistance from the IMF, Greece has ticked a new box on a list prepared by his creditors, even as preparations for a new bailout of the country seemed to skate. Folding a request on July 13 at a high voltage peak through the other States of the euro zone, the finance minister Tsakalotos Euclid wrote: “We want to inform you that we request a new credit from the International Monetary Fund” In a letter published Friday.
The Fund confirmed Friday in a statement it had received the new application and said he would now discuss with Athens and its European partners “of the timing and modalities” of future discussions on the aid package.
The Greek government, dominated by the radical left Syriza party, originally intended to do without any new IMF aid plan, considered too strong supporter rigor. But Athens had had to back to Germany in particular, which insisted that the institution of Washington, involved since 2010 in two successive bailouts of Greece, remains on board.
The Fund and the Greek government are, however, agree to call a debt relief for Greece, the European statistical office Eurostat has estimated at an amount equal to 170% of gross domestic product. Formally, using Greece still runs the Fund until spring 2016, and a new application was not necessary.
“Dear Director of the IMF”
Mail Euclid Tsakalotos Christine Lagarde, beginning “Dear IMF Executive Director,” so appears mainly as a gesture of political goodwill. The letter was published while the process of negotiating a third aid package involving the IMF, the States of the euro area and the European Central Bank (ECB) seemed skate Friday.
So that Athens has already approved several steps, including two votes on the reforms that have cost some of his parliamentary majority, the Prime Minister Alexis Tsipras, blur remained on arrival in the country of senior officials from the European Commission, the Bank Central European and IMF.
The team assessing the Greek economy and reforms, which had not set foot for nearly a year in Greece because of hostility growing towards this “troika” is expected “in the coming days.” A Greek ministerial source had first announced its arrival Friday. Other sources close to the case have they mentioned the “logistical” problems around the arrival of this group now euphemistically called “the institutions”. His return will be a heavy symbol sense in a country that overwhelmingly rejected the austerity referendum by July 5. “We still discussing the place because it must find an accessible location near the ministries,” said one source.
ultra tight calendar
The aim of this new cycle of meetings is finalized, by 20 August at the latest, the third aid package which the principle was accepted in pain July 13. Greece, whose coffers are empty, must repay more than three billion euros to the ECB on August 20, then 1.5 billion to the IMF in September.
The timetable is extremely tight. It takes less than a month define priority actions to be implemented, decide the payment schedule and agree on the fiscal path of Greece fallen into recession in the first quarter, according to a source close to the discussions.
During this process, the exact amount of the aid plan, valued for the moment 82-86000000000 euros, could be revised. Part of this sum is to be used to recapitalize Greek banks, which reopened Monday after three weeks of closing, but in a very constrained environment.
Greece actually banned capital outflows except payment bills and some emergencies. The country also limit withdrawals distributor to protect fragile institutions by massive flight of deposits and outstanding loans by accumulation. “A first capital injection” in Greek banks “would be desirable to stabilize the sector” in mid-August, estimated the Governor of the Bank of France Christian Noyer, also one of the leaders of the ECB, in an interview Le Monde published Friday.
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