Friday , January 19 2018
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Troika Demands New Emergency Tax or Scrap of Bonuses in Exchange for Banks Recapitalization

 I think, we are spectators of a paranoia developing at full speed here. Greek Finance Ministry and the Troika are at odds over a  555-million payment that Greek banks are due to make to the state by the end of the year. The Troika discovered a hole of 500 million euro plus 55 million euro in interests rates in the budget 2012. This hole was dug from the aid the banks received in 2008.

The Troika demanded that the banks won’t give back this amount, but that equivalent measures such a new emergency taxes or scrap the holiday bonuses of 1,000 euro for civil servants will be imposed. 

Talks between the Greeks and the Troika ended on Thursday morning in a deadlock with “Alternate Finance Minister Staikouras threatening with resignation,” as Greek media reported.

I don’t know for whom Staikouras’ resignation would be “a threat”… certainly not for us, neither for the Troika, I’d dare say.

“Finance Ministry and the troika are at odds over a 555-million-euro payment that Greek banks are due to make to the state by the end of the year.

The amount is the dividend on preferential shares that the Greek state owns in the banks following a capital injection of 5 billion euros into the lenders in 2008.

However, the troika is arguing that the amount needed to recapitalize Greek banks will rise if the dividend is paid and that the process should be stopped.

This would mean the Finance Ministry taking a hit of 555 million euros to the revenues it planned to raise this year and having to find the money from somewhere else.

The troika has proposed that Greece either look to increase revenues through new or increased taxes or scrap the holiday payments of 1,000 euros for civil servants from this year, rather than 2013 as had been planned.

The Finance Ministry is said to have strongly opposed the troika’s demands on Wednesday and sources said that Alternate Finance Minister Christos Staikouras offered to resign if Greece’s lenders do not back down.

Talks between the two sides are due to resume on Thursday afternoon.” (ekathimerini)

+++ Sources from the banking sector told Proto Thema, that the banks told the gvoernment that a way will be sorted out within the next weeks . “The solution will be on the technical level, so that this amount won’t be deducted from the own capitals of the banks.”

PS the issue is very complicated and surpasses my legal, technical and mental health knowledge.

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  1. The situation is not difficult at all. As far as banks are concerned, the direction money travels in is one way, THEIR way. And they can be as difficult as they like, because the know that the EU and ECB has got this policy of not, under any circumstances letting any bank go bankrupt, no matter how corrupt the institution is (RBS, UniCredit, Anglo Irish, Northern Rock, you name it, the lists is almost certainly as long as the overall number of banks), the banks know they can get away with literally murder. After the collapse of Lehmans, the elite realised that if this happened again, THEY would lose all they had, so the unholy alliance of finance and politics was called on to avoid this from happening. The only alternative of course was to get the money elsewhere, and Joe Soap ends up paying through the nose.
    Same this time around. No matter how many politicians start posturing and resigning, it won’t change a thing. The only reason they threaten this is because they think it will look good at the next elections. But then, remember the “Red Line” issues for PASOK and Democratic Left? Did they change colour in the last rain shower?

  2. What about this idea: Don’t recapitalize the banks, just cap the bonus and tax it if it isn’t and no need for another emergency tax?
    Yes, that’s simplistic too. Like that ‘official’ idea. But at least it’s not as crazy.
    Why the f*** would we need recapitalisation of banks? What have they done to safe the real economy lately? They haven’t given out any loans for the last couple of years to businesses anyway. And they are not going to do that when they get all those billions. Maybe just a bit here and there to there friends, family and political masters, but that will be all.

  3. The only sure way of getting rid of these guys is to take your money out. All of us, at the same time. International bank clearance day. Now THAT would be very a very effective way of clearing the decks.
    But then, where do you put it? Unfortunately the world seems to be stuck with thee banksters until we come up with an alternative. Meanwhile, the banksters come up with more alternatives to screw Joe Soap.
    Here’s the latest one. I wonder how long before they start this crack in Greece? All very legal of course!

  4. But then, where do you put it?

    Hey, let’s start a bank. Together we are very trustworthy people, aren’t we? *flashes his deep brown eyes and looking trustworthy and yet open and inviting in camera*