What’s Up in Greece on Jan 21/12?

tagged: Greece, January 21 2012, PSI talks, Troika, weather, what's up in greece

What’s Up in Greece on Jan 21/12?

The PSI-cho thriller is still up in Greece as film directors Dallara, Papademos and script girl Merkel have not concluded the fine tuning. Shortly after midnight, IIF-Chief Dallara issued a statement containing a drop of optimism:

Talks in Athens Progress

Athens, Greece, January 20, 2012 — Charles Dallara and Jean Lemierre, Co-Chairs of the Steering Committee of the Private Creditor-Investor Committee for Greece, stated: “Discussions continued in Athens with Prime Minister Lucas Papademos and Deputy Prime Minister and Finance Minister Evangelos Venizelos. The elements of an unprecedented voluntary PSI are coming into place. Now is the time to act decisively and seize the opportunity to finalize this historic deal and contribute to the economic stability of Greece, the Euro Area and the world economy.” (IIF)

It looks as if talks did not successfully concluded on Friday, when Germany, Holland, Luxembourg and Finland asked a lower interest rate of the new Greek bonds. Media report that the four countries asked an average coupon at 3.5%, while the private bond holders want a 4.2%-coupon. (Further reading on PSI technical details here ). Of course, it is not only these four countries negotiating on the Greek Bond swap. It is the whole EU and the whole IMF. As is generally known “Too many cooks spoil the broth”…

PSI-cho Granny Readies for Greek Haircut

Another issue of dispute is the lawof which country will rule the new Greek bonds: of Greece or of Great Britain? Greek government spokesman said last night that “talks will continue on technical and legal issues”. Latest information in state broadcast claim the talks would continue over the weekend, but an agreement has to have been reached by Monday morning. So that FinMin Venizelos will present the results at the Eurogroup meeting on Jan 23/2012.

Hear! Hear! The Troika representatives currently in Athens as allegedly disappointed of the fiscal progress made in Greece. It is said that the Troika will ask written commitments by each and every Greek Minister that he/she will stick to the agreed. Furthermore, the Troika will have multiple meeting with the various representatives of the cabinet. Why the Troika wants to spoil the sacred Greek weekend is a big question. Greek Ministers, keep cool!

As major delays in the implementation of the Memorandum of (mis) Understanding, ie the loan agreement, are recorded, the Finance Ministry considers to use the usual path to increase state revenues: implementing some new taxes. This time, the agricultural land plots will most likely be taxed more or less as ‘real estates’. Dogs’ houses will be exempted from property tax, I hear…

PM Papademos is pushing a compromising proposal on the issue of wages cuts in the private sector. Freezing salaries for three years. Should trade unions accept it, workers can hope to still be receiving the 13th and 14th salary.

Socialist party PASOK was shocked on Friday when economic prosecutor Peponis claimed ex-PM and PASOK-leader Papandreou and ex-Finance Minister Papaconstantinoumight have some responsibilities on the revised budget deficit of 2009. PASOK spokesman Panos Beglitis said that calling Papandreou and Papaconstantinou “threatens the national interests of the country.”

Development Minister Michalis Chryssochoidis said that there are “110 civil servants working in the general secretariat of Macedonia-Thrace (Thessaloniki) without a work-object”. They have been paid for 10 years for doing nothing, the Minister said. [OMG, are they to blame for the country's economic collapse?]

An explosive device went up in the early morning hours of Saturday at the office of the Economic Department of the Education Ministry. No injuries, just small material damage.

Weather: There have been disruptions in the sea transport on Saturday morning due to strong winds reaching up to 9 Beaufort. Check with local port authorities if you are due to travel by ship or ferry over the weekend. Temperatures will be slightly higher, rain is expected in many parts of the country and snow in the mountainous areas.

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