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Greece Wrote Just One Wish on Santa’s List… “PSI”
Posted by keeptalkinggreece in Economy
Every child in Greece knows that Santa slides through the chinmey on the New Year’s Eve – not earlier, not later. Little and bankrupt Greece wrote only one three-letter wish on her letter to Santa this year: PSI! Currently the IMF and the EU seem to disagree on the 50% haircut in Greek bonds, the bankiers enjoy season holidays, and Greek Finance Minister Venizelos grow older minute by minute.
The International Monetary Fund and the European Commission disagree on whether the new PSI program would be sufficient.
The disagreements had been expressed already in early December, before the EU Summit, but they have gone public through the international financial press recently.
Dow Jones Newswires and Wall Street Journal gave publicity to an IMF estimate that PSI program, which provides a haircut of 50% in Greek bonds, is not sufficient to make the country’s debt sustainable by 2020. If this assessment become IMF’s official vie, there will be no point to negotiate a new loan agreement.
Weekly newspaper Kefalaio had reported right after the EU Summit that European Commission officials were annoyed about the views of several IMF officials that a 50% haircut would not be sufficient to address Greek debt’s sustainability. The interest thing is that several Greek executives shared IMF’s view, while the ECB supported EU position, which said that PSI program could a disastrous idea that could disband the euro area. (capital.gr)
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