Probably the MOFs feel he’s politically an amateur b/c he doesn’t look at the issues strictly politically but leans more on economic principles, where the MOFs may be somewhat amateurish. Ha, must be frustrating for both sides. IMO, what the MOFs refer to as gambling is ‘game theory,’ as bankingnews reports Syriza doesn’t want resolution until June although they will say they are hoping for an agreement in May.
BTW, for the two posters who down thumbed the introductory post, those statements were reported in the news and not my personal opinion. (back to daily chores)
As reported on Bankingnews.gr , Syriza knows that Greece willl need a new loan of 30-40 billion for which it cannot apply for until June. By postponing agreeing to the current Agreement, which doesn’t expire until June 30, Syriza will be able to combine the negotiations for the new loan with the current agreement. If Syriza reached an agreement now, in June creditors would demand new mandatory reforms with the new loan agreement. Maybe the Eurogroup is aware of Syriza’s strategy and that is why they are complaining about Greece’s slow progress. Or maybe they are just concerned about Greece having a Grexaccident.
Bankingnews reports strategically this intentional delay is correct, as correct is the government's decision to build to utilize funds available from public bodies and local authorities. It gives explanations to the incomprehensible attitude of SYRIZA and the Government generally.
Ha, glad someone was interested!
The self-described insomniac appeared to juggle millions of dollars at a time through the global banking system between the British West Indies, the Middle East and Switzerland.
Operating his one-man shop from his parents' house in a working class London suburb miles from the financial district, Mr. Sarao became the first person to be charged with illegal activities related to the May 2010 rout in the U.S. equity market, which is dominated by far more sophisticated players.
He is accused of using an automated program to "spoof" markets by generating large sell orders that pushed down prices. He then cancelled those trades and bought the contracts at the lower prices. He contacted software companies Trading Technologies and Edge Financial with detailed instructions for customising software for his trading needs.
Sarao's trading reaped him a roughly $40 million profit, authorities allege, though he showed few, if any, signs of wealth. The drama has stunned Sarao's neighbours, who said he never drove a car or wore fancy clothes, though he apparently was not shy about his trading prowess. He boasted to the UK's Financial Conduct Authority that he had always been quick with the computer mouse, but that he was still an old-school trader.
Also a referendum could cause chaos among some party members and perhaps lead to a new Parliament that'd be more supportive of the reforms.
Yet, all the politicians (e.g. Athens mayor on BTV today) say they don’t want new elections and a referendum would cause chaos. Wonder why a referendum would cause chaos? Also, I really don't understand on what news NBG is up today!
Negative was the climate in the Eurogroup meeting today toward Varoufakis as he received strong criticism from his European counterparts. There was intense frustration for his refusal to proceed with measures to improve the situation of the Greek economy.
The Eurozone finance ministers accused him of manipulating and stalling (and I read about the reason for it). The ministers wanted technical updates of what’s happening on the ground in Greece. Instead, Varoufakis proceeded with a theoretical and strategic attack on the framework of the IMF. Well, why let the meeting go to waste I guess.
Cascadia, thanks for the advice. I'm not in NBG at this time - just watching and waiting. However, when an agreement is reached, this may take off causing me to miss the bounce. I noticed the gold stocks had a good run Nov-Dec, but since Jan it's been downhill except for REDF (India). I guess it's all about knowing when to buy.
I really don't know. It may be Eurobank is paying Citibank 12% interest for administering their ADR program. Each quarterly notice is for 1 billion except in July for 2 billion. Seems awfully high interest!
Citibank could be called to find out what this is. Later I may find Citibank's phone number or perhaps Maria will read this post and supply the number. Citibank services the ADR for Eurobank.
The current disagreements with our partners are not unbridgeable. We and our partners already agree on much. Our government is eager to rationalize the pension system (for example, by limiting early retirement), proceed with partial privatization of public assets, address the non-performing loans that are clogging the economy’s credit circuits, create a fully independent tax commission, and boost entrepreneurship. Public administration is in urgent need of modernization, and public resources must be used more efficiently. Overwhelming obstacles block the formation of new companies. And inequality has reached outrageous levels, preventing society from uniting behind essential reforms.
The differences that remain concern how we understand the relationships between the various reforms and the macro environment. None of this means that common ground cannot be achieved immediately. The Greek government wants a fiscal-consolidation path that makes sense, and we want reforms that all sides believe are important.
Our task is to convince our partners that our undertakings are strategic, rather than tactical, and that our logic is sound.
Their task is to let go of an approach that has failed. (full article at Project Syndicate, April 23)
a senior EU official said, adding the country should be able to stay solvent until June. Euro zone officials had expected the list to be presented on Friday to the ministers meeting in Riga, but such hopes have dimmed.
Thomas Wieser, who heads the Eurogroup Working Group that prepares the decisions for the ministers' meetings, said Greece would in any case need to provide the list in the coming month. "It is my central belief that the negotiations with Greece can still be successfully finished," he said.
However, I woudn’t be surprised if Greece submits the new list at the meeting tomorrow.
“Yes, [exit from the Euro can be avoided]. The irony of Syriza’s victory is that it came just at the point when a workable compromise should be possible.
“By late 2014 Greece had managed to eke out a small “primary” budget surplus, with tax receipts exceeding spending, excluding interest payments. That’s all that creditors can reasonably demand, since you can’t keep squeezing blood from a stone. Meanwhile, all those wage cuts have made Greece competitive on world markets — or would make it competitive if some stability can be restored.
“The shape of a deal is therefore clear: basically, a standstill on further austerity, with Greece agreeing to make significant but not ever-growing payments to its creditors. Such a deal would set the stage for economic recovery, perhaps slow at the start, but finally offering some hope.” (search “Greece on the Brink” for full article)
"At the end of 2009 Greece faced a crisis driven by two factors: High debt and inflated costs and prices that left the country uncompetitive.
"Europe responded with loans that kept the cash flowing, but only on condition that Greece pursue extremely painful policies. These included spending cuts and tax hikes that, if imposed on the U.S., would amount to $3 trillion a year. There were also wage cuts on a scale that’s hard to fathom, with average wages down 25% from their peak.
“These immense sacrifices were supposed to produce recovery. Instead, the destruction of purchasing power deepened the slump, creating Great Depression-level suffering and a huge humanitarian crisis. On Saturday I visited a shelter for the homeless, and was told heartbreaking tales of a health care system in collapse: patients turned away from hospitals because they couldn’t pay the 5 euro entrance fee, sent away without needed medicine because cash-starved clinics had run out, and more.
“It has been an endless nightmare, yet Greece’s political establishment, determined to stay within Europe and fearing the consequences of default and exit from the euro, stayed with the program year after year. Finally, the Greek public could take no more. As creditors demanded yet more austerity — on a scale that might well have pushed the economy down by another 8 percent and driven unemployment to 30 percent — the nation voted in Syriza, a genuinely left-wing coalition, which has vowed to change the nation’s course. Can Greek exit from the euro be avoided? Yes, it can.” (cont)
"Gazprom has made us a very good offer but the U.S. would be willing to make a counteroffer," explained Greek Foreign Minister Kotzias who is visiting Washington this week.
Also US Secretary of State John Kerry urges [publicly?] the eurozone to respect the election of a government in Greece against austerity programs.
pasato, What’s your opinion on a referendum if Tsipras agrees to reforms that members of Syriza or other parties don’t like? A referendum would provide an opportunity for the people to express their willingness, or lack of, to accept the necessary reforms to keep the Euro. If the people are unwilling to compromise, then a new election could be held.
Red, where are you getting your info about no approval needed by the IMF? Our friend Peter writes, “The government reportedly is considering plans to merge the National with Piraeus and Alpha with Eurobank creating two new banking groups. These scenarios are plans of destruction and will be rejected by the EU and DGCom. As separate entities, “The Greek banks need new capital, estimated at 7-10 billion and 15 to 18 billion if residual merged two large banks.” (funny my post about this disappeared from NBG message board)
And if the government did receive approval, I believe it'd have to pay to assume control, according to the following:
In 1962, the United Nations General Assembly adopted Resolution 1803, "Permanent Sovereignty over National Resources", which states that in the event of nationalization, the owner "shall be paid appropriate compensation in accordance with international law." The term "appropriate compensation" represents a compromise between the traditional views, taking into account the need of developing countries to pursue reform even without the ability to pay full compensation, and the Western concern for protection of private property.
In the United States, the Fifth Amendment requires just compensation if private property is taken for public use.
Maybe EUROB has a chance of being the only private bank left in Greece b/c the government may not have funds available to pay for Watsa''s shares. Perhaps that's the reason he feels safe buying more shares (besides the avg down factor), thinking there's a possibility to be the only private bank left in Greece if the gov nationalizes the others, or at least he knows the gov will be required to pay him for his shares. However, I don't know how successful a privately owned bank would be competing with the public nationalized banks.
However, in the event of the country’s sovereign default, the banks, which are large holders of Greek debt, would probably be ruled insolvent because the value of the assets on their balance sheets would fall sharply. Under the rules of the ELA, the ECB would be unlikely to be able to continue providing liquidity to banks in the beleaguered country -- users of the scheme must be solvent. (ran out of room on prior post)