and warned of the consequences of a possible negative outcome of the negotiations.
In particular, the deputy White House spokesman, Josh Earnest, argued that "it is the responsibility of Greece, EU and other international organizations involved to resolve their differences. "
What is needed before any reform takes root is a fundamental change in mindset. Is it possible to break this vicious circle and, above all, by the current governing coalition of left and right? In fact, change is already there. What the majority of Greeks elected in January was not a radical ideology in the form of the Syriza party, but a radical break with the political establishment. The Greeks are fed up with illegal success of a cafeteria that operates under the laws. They want the economic collapse of the country to cause a moral collapse that will usher in a new sense of collective responsibility. For every corrupt officer in public office to find a younger ambitious one that will see his work as a fight to win back the country.
An impressive and healthy patriotism blooms in town halls and tax offices in Greece. Even people who do not have much sympathy for SYRIZA, agree that the party's election offers a unique last chance for the country to find a new, positive identity. SYRIZA, a new party has a real chance to use his innocence to bring back the country, provided that innocence does not turn into impotence. Translation editor: El. KATSOURI
On a recent trip to Greece, American journalist Jochen Bittner interviewed the General Inspector of Public Administration. Mr. Rakintzis said many Greeks are working hard for very little money. "Social conditions do not allow people to grow." Foolish rules stifle entrepreneurship and there is a tax system so complicated that even accountants cannot understand it fully.
There are simply two Greeces: a formal and an informal. The official Greece is dysfunctional, while the informal works pretty well - the formal theoretical Greece with a control system; the unofficial Greece with conniving people who break the rules to avoid taxes. While this sounds hard, and you might expect it was said by a German, but after many interviews it is what the journalist heard from Greeks themselves, who insist that the main reason the Greek crisis was dispersed was disrespect to the rules and the state itself.
According to Stavros Lygeros, journalist of the newspaper Kathimerini,”it's like there are two cafes that open on the same street. The first remains committed to the rules: issues receipts, prohibits smoking, kitchen meets all health requirements. The owner of another restaurant does nothing of all this because he knows the local police. In Germany, the government would close very quickly the second cafe, but in Greece, the first is [the one] that will come out losing because of wasting time and money to follow rules that in practice are not necessary to follow.” Explaining why Mr. Lygeros mentioned the "sinful triangle," i.e. the economic elite class and media policy, where wealthy businessmen back specific ministers and ministers do favors for businessmen.
Greece has made efforts to change. The new Minister of Administrative Reform, George Katrougalos, says there is a deep rooted problem. "The Greek state due to its failure to provide effective social services is perceived negatively by a significant part of Greek society." (cont. below)
in its stock. MOF Varoufakis clarified today that there is no plan to introduce dual currency in Greece.
The rumor could be circulated by a shareholder to increase Fortress share price or by the unnamed ZeroHedge writer who is short the Greek banks
I think they will continue to advance. However the banks face the deferred tax issue later on. Also it remains to be seen how well the people accept the reforms and how much economic growth lies ahead. NBG will benefit when Finansbank is sold. (sorry for the delay was away from my computer)
Be it days, I don't want to risk being out of NBG when the ADR open higher and moves fast after the agreement.
A new draft agreement is coming soon with 22 new equivalent, countervailing measures to replace lost revenue while avoiding reductions in pensions.
Based on agents who know both EU projects and designs of Americans who want the deal to close immediately with Greece, Greece will win a total of 14 billion euro from incoming funds once an agreement is reached. Along with these funds and funds from Juncker’s Development Bank, Greece will be able to immediately cover almost 50% of its financing needs for its economy. At the end of the summer, Greece will have the benefit from participating in the ECB's government bond purchase program. Financing alternatives beginning in July are suggested in the Agreement. The new measures may not all be accepted by Germany, but it’s certain that through negotiations an agreement will be decided within the next two weeks. What is important is that very little, if any, new funds will be needed by a third loan with the classic memorandum attached.
American authorities have confirmed that if this draft agreement with proposed variations is adopted, in the second half of 2015 American funds will be re-positioned in the Greek stock market, creating a positive shock to the economy. If the variants of new agreement are accepted, the EU will be a winner for resolving the Greek problem, and America will be a winner because they want Greece economically prosperous to avoid dependence on the Russian factor. The IMF involvement is not given.
The Greek stock under this plan will be found at 1000 units, i.e. rise 20%. The banking stocks will rally +60% and +80%, while bond yields of the 2-year willfall from 21.6% to 12%. (Source: bankingnews.gr)
Therefore it does not make sense for ECB to report a decision for no increase of T-bills for banks before the Eurogroup meeting even starts. It was reported Draghi did not want the ECB to make a decision about the T-bills before the Eurogroup of May 11.
Of course names will not be released until after the arrests The apprehended will be invited to either pay taxes or be jailed, as per the provisions of law Valavani enacted by the new government.
Other state debtors will get a chance to pay their expired debts until the end of the month without incurring any fines or penalties Alternate Finance Minister Nadia Valavani announced on Wednesday as the government resorts to those measures to boost its flagging revenues. By the way, Ms. Valavani was prominent in the resistance against the military dictatorship and was imprisoned and tortured, making her a hero of the resistance among the left.
In the coming months, arrests of those on Lagarde will peak. Officer of Safety notes that if the six arrests are completed, a majority of the remaining people on the list will go voluntarily to the authorities to clear their debts.
In the last two weeks there have been two arrests. A well-known Athens businessman was discovered to have deposits in Swiss bank HSBC with a deviation between payments and declared income. He paid 500,000 euros. Another 60 year old renowned businessman, who worked in the field of confectionery, was arrested on charges of income tax evasion and money laundering He was released after payment of 340,000 euros.
It will begin using new technologies in order to release workers who will be retained only on an advisory role. The objective is for 50% of transactions to take place via alternative networks. Banks will be modernized; they have already implemented a project to renew and modernize approximately 700 ATMs.
Despite the crisis in the Greek economy, NBG reports its deposit base has increased recently while it has continued to provide loans, especially to healthy firms and to those companies that are sustainable.
Regarding loan write-offs, NBG, Piraeus and the other banks have decided to support the Greek society by supporting especially the weak economic strata that had taken out loans in the past and now are unable to meet their obligations. According to the National CEO Fragkiadaki, the greatest weight will be given to noteworthy clientele and those that have had the longest relationship with the bank.
according to a Greek official appearing today on CNBC. “We expect some kind of transitional agreement, which will help liquidity and capacity of the public sector to borrow in the short term."
the threat of increasing Russian influence in the Mediterranean is the main cause says Faber. Speaking on CNBC, Faber argues that this is a political issue, which many overlook. (Marc Faber is a Swiss investor based in Thailand. Faber is publisher of the Gloom Boom & Doom Report newsletter)
Yes I read Greece is hoping for an extraordinary meeting of the Eurogroup on 25 May if today’s Eurogroup is successful in reporting progress. Too much emphasis was placed on successful progress of today’s meeting resulting in ECB increasing the limitation on Treasury bills that Greek banks may buy. It's now reported that won't happen (where's the ECB statement to that effect?).
Markets are also reacting to a few negative articles. The NYT reported Greece was not going to pay the IMF. However, the Greek spokesperson on Bloomberg this morning said that Greece will pay.
Yes, I agree an agreement will eventually be reached. The market decline so far today in Athens has occurred with only moderate volume. It may rebound after news of progress in Eurogroup when the meeting ends (ha, it hasn’t even started yet).
Eurobank has borrowed from the Eurosystem 29-32 billion and has made to them guarantees of 32-35 billion Euro. In a hypothetical case the ECB haircut the Greek banks' collaterals, the banks have enough guarantee reserves to cover up to a 40% haircut according to bankingnews.gr.
Foreign investors believe that if the deal closes stocks will move fast, surprising many.
The yield on Greek bonds have fallen by 13.6%, and bond purchases of 2 billion euros are anticipated to be placed by Morgan Stanley and JP Morgan.
Despite the huge losses incurred in bank stocks by foreign investors last year, large American fund managers recently met with Greek bankers and companies in Athens. Blue Bay, Canyon and Farallon expressed interest in both bonds and shares. However, given the damage to banks since last June, these new class of foreign investors has changed their approach. Because of political risks and the possibility of elections they will invest 30% of their funds now and 70% in June in view of the government's agreement with the lenders..
Also, along with Fairfax, Fidelity, Blackrock and SCHROEDER are investing as the cycle starts up. I believe the translation indicates J. Paulson, Third Point, D. Einhorn and Baupost are no longer invested in Greece. Currently there are 1-2 billion dollars less invested than in 2012. .Source: newmoney.gr
Yes, I understand and appreciate the sharing of information, ideas and opinions. We each have to make our own decisions based our own research and judgment. Ha, experience is a good teacher. BTW I gained more on my first trade of DRL than I lost on the 2nd trade. And of course, most of us have lost $ on EGFEY. (I'm unable to enter Yahoo 'directly' to post with my alias - very strange!) Have a good day!
Negotiations have taken a long time. We may not agree with some of the policies the government has been haggling over, but Syriza had an obligation to try to implement their mandate and a right to bargain with the institutions in an effort to win concessions they felt would lead the country in the right direction.
Privatizations are one example that has been successfully negotiated. The institutions were demanding 67.7% privatizations of the two ports, but agreed to 51%. Tsipras stated, "We are not talking about privatization, but about development partnerships with greater involvement of the State in order to guarantee the public interest and the strict observance of labor and environmental laws."
Varoufakis said, "You cannot understand why negotiations take so long? It is because our new government must convince our global partners that the previous program failed before agreeing on a new package of policies. It is not difficult to understand that such an admission would complicate the proud institutions. The duty of our government is to accept the political costs of some difficult decisions that are necessary to win the trust of our global partners. Their duty is to accept that the programs implemented so far have failed in key areas.”