Creditors’ proposal to Greece: “Do not pay salary & pensions for 1-2 months”

Posted by in Economy

Liquidity problems? Greece’s official creditors had a genius idea. They apparently proposed to Athens to halt the payment of salaries and pensions for one to two months. This would allegedly tackle the problem of liquidity and find a solution to Greek problem of how to pay back bailout loan tranches to creditors when suffering from liquidity problems.

“When we say that we have liquidity problems, they tells us to make no payment of salaries and pensions for one or two months,” Panariti said as quoted by Greek media.

The creditors’ proposal was revealed by Varoufakis’ aide Elena Panarity at an event of the Deree College on Thursday and was confirmed by Finance Ministry officials on Friday.

The creditors made this proposal at the side talks the Brussels Group meeting in Brussels on Tuesday.

Panariti did not revealed which one of Greece’s creditors ECB, IMF and EU made this proposal. She is part of the Greek team negotiating with creditors the reforms that Athens has to fulfill in the next months.

In seems that the proposal was made to Finance Minister Yanis Varoufakis who rejected it right away, describing it as “shameful”.

UPDATE:

four hours after the media published Panaritis’s statements, she issued a press release via the Finance Ministry where she claimed that “these proposals were made before 2015.” that is that the Torika had made these proposals to previous governments.

Instead of clarifying the things, Panariti made things more complicate because Greek team officials who participated at the Brussels Group meeting had confirmed her previous claim and they had even quoted Varoufakis’ reaction to the proposal.

Huston, we got a problem! With the communication of the new Greek government!

On Friday Greece did indeed paid a tranche of 340 million euro to the International Monetary Fund.

PS what’s next on the list of genius proposals?