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Education Minister Threatens to Resign over Greek Universities Funding

Just 23 days after his appointment, Greece’s  Education Minister Giorgos Babiniotis threatened to resign on Thusrday upon criticism and pressure he received on his decision to disengage the funding of universities and Technical Education Schools (TEI)from the councils elections as it has been defined by a recent law passed by Papademos coalition government. Six of Greece’s universities say they face immediate closure after the Greek Bond Swap reduced their assets to zero after the Bank of Greece converted their funds deposited there into state bonds before the PSI.

Six universities at risk of closure after bond swap

Six of the country’s universities say they face immediate closure after the recent bondswap reduced their assets to zero.
An emergency meeting of university rectors on Tuesday heard that only 33m euros remained of 120m euros that 17 Greek universities had deposited with the Bank of Greece for their operating expenses, while six university accounts were now completely empty meaning they would soon be unable to stay open.
Their accounts hit rock bottom following Bank of Greece’s conversion of their funds into state bonds, which were subsequently subjected to a haircut in the private-sector involvement (PSI) bond-swap deal in March.
The rectors decided to set up a legal committee in an attempt to reclaim the money lost.
In a meeting with the education minister, Yiorogs Babiniotis, the rectors called for emergency funding for the tertiary education sector.
Babiniotis said he understood the problem the universities faced and pledged to do everything in his power to secure, even partially, the continued operation of the universities.
He said he had raised the issue earlier in a meeting with the prime minister. (Athens News)
Similar claims about the violent conversion of University assets into Greek bonds came from the University and Technological School in Patras,  the Technological School in Crete.
And not only. Public Hospitals reserves have been apparently turned into Greek bonds as well and suffered a 53% haircut.
Meanwhile the government crisis with Education Minister seems to have been diffused after caretaker PM Papademos stepped in and apparently signaled that the funding of the country’s high education bodies can continue this year according to Babiniotis proposal, while he stressed that at the very end the law has to be implemented.
Giorgos Babiniotis said on Thursday morning, “The developments on the coming days will show if it makes sense that I’d continue my efforts.”
Greece is heading toward snap elections, most likely at the beginning of May.

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  1. Not content with destroying the current generation, the EU are trying to destroy the future too.

    No education = no hope.

    Come on greek people, what happened to ελευθερια η θανατος?

  2. The story about that disappeared money is getting weirder with the day. Even hospitals seem now to be with empty accounts at the Bank of Greece…
    But about Mr. Babiniotis, it looks like he is playing the old game of not wanting to obey to the law he has sworn to uphold. Nothing new there. And his uni-peers will be well pleased with that.
    He has attempted to clear state funding for universities even though they had not complied with reforms passed by PASOK and ND last summer. The legislation demands that universities elect administration committees to oversee the management of their finances and other operational aspects but the institutions have failed to do this.
    Indeed nothing new there. Pass a law and then wipe your **** with it.