Thursday, July 16, 2015

Greece gets a breath of fresh air from the ECB – The Obs

Frankfurt (AFP) – After the vote stormy first reforms, Greece could cherish the hope Thursday quickly fill its coffers, and got a breath of fresh air for its banks from the ECB, agreed with a debt relief.

In the evening the Greek government on Monday announced the reopening of banks, closed since June 29 However, according to Deputy Finance Minister, Dimitris Mardas, withdrawals will be limited to 60 euros per day, while all other operations will once again take place.

In the wake of a vote in the night of Wednesday to Thursday the Greek parliament, which set in motion the reforms as a token of goodwill and the price of strong political tensions, Athens has received the strong support of the President of the European Central Bank (ECB) Mario Draghi to find a way to lighten its debt, a necessity “indisputable”.

Despite this support weight, early elections could “very likely to take place” by October, found the Minister Interior Nikos Voutsis.

The Greek Parliament approved four reforms, including a rise in VAT in accordance with the requirements of creditors, but at the cost of many defections in the ranks of the formation of the left radical Syriza Alexis Tsipras of the Prime Minister.

Satisfied, the finance ministers of the euro area have endorsed Thursday at the opening of formal negotiations for a third aid package of over 80 billion euro, the principle of which was approved Monday.

And after the lifting of the London reluctance on the use of Community funds of the 28 countries of the EU, Athens would be able to touch the money in the next few days to meet current expenses and a big repayment of 4.2 billion euros at the ECB Monday

-. Seven billion “bridge” financial –

To ensure, at least in part, that “bridge” financial, the European Commission proposed a loan of seven billion euros drawn from a community fund. The British Finance Minister George Osborne, who did not want British taxpayers spend at checkout to fix the problems of the single currency bloc, announced an agreement with the Commission Thursday night.

the day the Governing Council of the European Central Bank (ECB), in regular meeting in Frankfurt, raised 900 million euro emergency loan limits ELA lifeline of Greek banks. “The conditions for a recovery of ELA are reunited,” said Draghi.

The Greek parliament will vote next week other promised reforms, and the ECB should further inflate a little volumes each ELA advanced of its kind, Holger Schmieding noted, Berenberg analyst, citing “carrot” held by Mr. Draghi.

However, there remain “questions about the will and capacity (the Greek government) to implement “the promised reforms, acknowledged Mr. Draghi, for which” it will be the responsibility of the Greek government “to lift those doubts

-. intractable Berlin on Debt –

Mr Tsipras Athens seemed weakened by the loss of his parliamentary majority. Citing a “tear”, the Liberal Greek daily Katherimini expected a cabinet reshuffle. But Alexis Tsipras himself merely to criticize Thursday night dissidents within his radical leftist party Syriza let alone sanctions.

From the European side, is expected Friday downstream of Deputies the Bundestag, the lower house of the German parliament, which must instruct his government to negotiate the third aid package to Greece. Although Chancellor Angela Merkel faces growing discontent in its conservative camp, the green light from the assembly is provided.

However, for Germany, the question of a Debt of Greece, which reached 180% of GDP remains particularly sensitive.

The IMF has recently held Greek debt “totally unsustainable” and urged Europeans to massively reduce by rescheduling or a partial erasure, a hard-fought option by Germany.

A true debt relief is incompatible with belonging to the monetary union, “Thursday reaffirmed the German Minister of Finance Wolfgang Schäuble.

The US Treasury Secretary Jacob Lew, visiting France and Germany, has, meanwhile, stressed “the importance of reaching a solution on the debt sustainability ( Greece, ed) in the coming negotiations. “

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