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Greece’s debt explodes to 321 billion euro – higher than before the crisis

Despite three years of strict austerity measures, incredible taxes and a debt haircut of 53% (100 billion euro in March 2012), Greece still owes 321 billion euro. According to newspaper To Vima, Greece’s debt exploded in the first half of 2013 up to 16 billion euro and is higher at 18 billion euro (stand June 2012: 303 billion euro).

Greece’s debt in 2013 is higher than it was in 2009 – before the country sought an international bailout. The debt course is worrying. (To Vima)

The current debt data corresponds to 180% of GDP and thus despite having achieved a primary surplus. the debt is still burdened with the amount of loan interests.

Finance Ministrer Yiannis Stournaras and his economic team try to find ways on how to deal with the issue.

The big question remains: is the debt sustainable? Could a new haircut solve the problem of always increasing debt?

New bailout

While German finance minister Wolfgang Schaeuble revealed last week that Greece will need a new bailout package, EU commissioner European Union Commissioner Guenther Oettinger estimated the new bailout package to be slightly higher than 10 billion euro, Greek media reported on Saturday. Oettinger reiterated that there will be no new debt haircut.

Speaking to German media, Oettinger expects the new aid package for Greece to be much smaller than previous programs but said a debt write-down for the country can’t be ruled out definitively, even as the German government continues to reject it.

Mr. Oettinger, who is EU energy commissioner, said he expects new aid covering the period from 2014 to 2016 would involve a “small two-digit billion” euro sum, according to the interview.

Greece’s first bailout plan in 2010 brought the country loans of 73 billion euros ($97.67 billion). But as Greece’s economy deteriorated, that had to be supplemented with a new package valued at about EUR173 billion in 2012. ((WSJ)

Samaras want to get rid of the Troika

According to exclusive information of «Real News», Prime Minister Antonis Samaras is determined to apply three strategic steps to get rid of the austerity loan agreements.

Samaras will seek primary surplus, radical adjustment of debt and exit to the markets in 2014. The political negotiation will aim to avoid a third Memorandum of Understanding (loan agreement) with the Troika that will bring new austerity measures.

“I want to disengage from the memoranda,  do away with the troika and the country to move to the next day,” Antonis Samaras allegedly told his interlocutors.

The prime minister will seek a solution near to a new haircut. Samaras campaign will start in October – after the German elections. (full article in Greek here)

We conclude our Greek debt Sunday report with a “joke”

FinMin Yiannis Stournaras told Proto Thema that a new bailout doesn’t definitely mean ‘new austerity measures.’

“If Greece would need further support, this would be around 10 billion euros, ie a very small amount compared to previous memoranda. And we are not talking about new MoU,  but about a financial support package, without new conditions. Furthermore, the targets – our obligations – have been set until 2015 set therefore no other measures can bee required, not other goals can be set. “

Enjoy a lovely Sunday 🙂

PS  psychotherapists would raise objections about the fierce ‘denial’ disposed by their patients.

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11 comments

  1. The Greek Treasury needs to start issuing euro-denominated demand notes and use them to retire its euro-denominated debt.

    There is nothing the ECB or the Troika can do to prevent this; the euros are as good as any others and they disappear when they are tendered as debt payments, anyway.

    Why the Europeans don’t take this common-sense measure of debt relief but choose to suffer for the bankers is beyond me.

    Also … get rid of ALL the CARS now The cars have bankrupted Europe = . Europe is therefor being de-carred the hard way. Economic collapse occurring in one nation after the other..

    • keeptalkinggreece

      thanks for the constructive proposals but it’s not up to Greece to decide how to get rid of debt. It’s up to Germany that dominates the euro zone.

  2. 10 billion euro a very small amount?

    There are a bit more than 10 m greeks to start with. 10 billion means 1000 euro for every man/woman & child.

    There are app 4m full time jobs in Greece. 10 billion means 2500 euro per full time job, two monthly salaries.

    There are app 2.5m people who work in the private sector -in the end the people that have to provide the money the whole country runs on- 10 billion euro means 4000 euro for everybody who has tries to put in a honest day work. That’s 3 monthly paychecks.

  3. Why isn’t it clear to everyone else that this whole “interest” is one bit of the EU, including the UK, simply writing their own interest demands on the various debtor Countries’ Banks which they have no prospect of paying – and living at the same time. This then inflates the income of the creditor Countries – whilst the debt rolls up until the creditors swap around the write-offs. The whole thing is one gargantuan fraud designed to transfer monies from the North to the South of the “union”. The EU isn’t bankrupt in the same way that the Weimar Republic of Germany wasn’t. This EU is also Constitutionally bankrupt as it is predicated on a sovereign entity that effectively promises to protect its “citizens” but hasn’t the ability or inclination to police it’s own boundaries. Look at te posturing of the UK and France, two “Permanent” members of the Security Council of the UN. Between them, they can’t even float an Aircraft Carrier worth the name across to the Syrian Coast. And they are pressing for a military strike on another sovereign Country that’s allied to Russia and Iran. Cameron and Hollande are as much use as Bill and Ben, the flowerpot men.
    Well, like Spain’s dispute with the UK, it might provide different headlines to the appalling financial situation in Greece.