Greek PM Samaras: “Without Financial Aid, Greece Will Go Bust” After October

Posted by in Economy

Greek Prime Minister Antonis Samaras revealed the dramatic situation of Greece’s finances : “Without the aid tranche of 31 billion euro, Greece will go bust.” Hours before meeting German Chancellor Angela Merkel in Berlin on Friday,  Samaras sent his message to the iron lady of Eurozone saying also that Greece’s “economy is really bleeding.” Speaking to German daily Sueddeutsche Zeitung, Samaras said that his government would achieve the promised cuts package of 11.5 billion euro over the next two years, so that the country receives the much needed aid tranche of 31 billion euro.

Greece can stay afloat if it receives its next tranche of aid later than October but will be broke if the money does not arrive, Prime Minister Antonis Samaras said.

“Theoretically, we could bridge the time. But if we don’t get the tranche at all, Greece is broke,” Samaras revealed.

The cuts-package is a prerequisite for Greece to receive the bailout tranche, of which 25 billion euro will go for the recapitalisation of Greek banks. The rest will go for the repayment of interest rates to Greece’s lenders.

 Samaras repeated that a Greek exit from the euro zone would be “catastrophic” and would lead to social unrest that would affect Europe more broadly.
He also signaled that his country needs more time to meet targets agreed with its bailout partners, telling Sueddeutsche that “some things might have to change” to support Greece’s reform efforts.

He said comments by other politicians on a Greek exit have disrupted efforts by his government to sell state holdings.

“Every time a German, Dutch or Austrian politician brings a euro exit into the debate, I think, ‘how should I privatize state operations? Which businesses will invest euros with us, when they might be paid back in drachma?’” (Bloomberg)

In line with the promises of his predecessor, George Papandreou, Samaras told SD that he “guarantees personally” that rescue funds for his country will be paid back to Germany and other creditor countries.

Papandreou failed to achieve the necessary reforms. Will Samaras manage push them through his coalition government partners?

Samaras is scheduled to meet Merkel in Berlin on Friday and French President Hollande in Paris on Saturday.

Full Article in German Sueddeutsche Zeitung: “Germans will get their money back