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National Bank of Greece S.A. Message Board

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  • jpomper jpomper Feb 15, 2011 3:19 PM Flag

    Bank Of Greece itself says Greece is in dire straights!!!!

    Yes, the article is interesting.
    What are the essential statements?
    Forget your emotions for a minute while you read it.

    1) Yes, Greece is still in recession: -2.3% -4%, -3.0% in 2009-2011. Clearly the bottom is past, but not out of woods yet. Consumption is falling. This makes bank’s recovery slow, but the process is ongoing. This what NBG said in their statement too.

    2) Greece received EU bailout. Not left in their mess, to drop 50% or more. They got money to bridge over. In return they are required to take steps, to be able to pay back to loans: raise taxes, collect them, cut public service salaries, overhaul labor rules. All very good steps, no free lunch forever. They have to do it anyways.

    3) The mesures are unpopular. What to expect? You hoped transport workers to clasp on transit reforms and ticket raises? Unemployment on the raise, so you expect unions to agree with Govt, and not to strike? This is not Germany.

    4) They tapped the money market, and got treasury loans for a little less interest rate lately. Is this bad sign? No, a clear message that greek money markets move toward stabilization.

    5) Over the weekend, they Govt. agreed with IMF to sell/lend state assets by 2015 in value of 50B Euros. Is this wrong or surprising? If you have to pay down debt, you pay from income or from assets.

    In all, the article is clearly a positiv message to investors.