Troika Demands New Emergency Tax or Scrap of Bonuses in Exchange for Banks Recapitalization

Posted by in Economy

 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.