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Greek FinMin: “People Will Starve Without Bailout Tranche”

He is getting more and more dramatic every time he speaks in the Greek Parliament. Finance Minister Yiannis Stournaras does not miss a chance to praise the benefits of the upcoming austerity measures package – or tsunami.” The cost for the country would be infinite, if we do not take the tranche of  31.5 billion euro,” he said on Monday adding “that if we do not take the tranche, people will starve…”

Yiannis Stournaras refrained to determine who are exactly the people who will starve…

Thank God, the majority of Samaras’ coalition government MPs will vote in favor of the 13.5 billion euro austerity measures for the shake of the 31.5 billion euro loan tranche to be used to banks recapitalization and payment of outstanding state debts. If the austerity package will give another hard kick to low- and middle incomers, that’s a story belonging to a different book of Greece economic depression history….

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6 comments

  1. I heard today there is a plot for ministers to resign and force a new election. His statement is just dramatics….only 8 billion of the money will go to help the government, the rest goes to the banks. People will starve no matter what happens with the bailout as none of it will go to people who need it, pensioners or the health service. Why can’t we all start telling the truth and face up to the facts?

    • keeptalkinggreece

      there is no plot of resigning ministers, Janet. INDEPGreeks leader proposed SYRIZA, their MPs resign form Parliament to enforce early elections. Proposal rejected by Syriza.

    • Why can’t we all start telling the truth and face up to the facts?

      It’s not in the nature of politics or politicians to do so. Telling the truth means losing power. Politics as about power, not people. They couldn’t care less whether nobody, 10 or 10,000 people starve to death. It’s an insignificant side effect of the overall plan, saving the banks and ensuring the debt owned by them gets paid, by everybody but the banks themselves. If that costs lives, well, so be it. In military jargon they would refer to it as victims of “friendly fire”. Unless of course you don’t believe this is all for our own good, eventually…

  2. He talks as if the 31,5 billion would be divided amongst the Greek people who suffer

  3. Mr. Stournaras thinks that most of the Greek citizens are totally ignorant(stournaria). His statement is nothing less than a pity attempt to misinform, misdirect, manipulate and frighten the Greek public. The €31.5 billion loan tranche is going to be utilized as follows: 1) €24.8 billion for the recapitalization of the Greek banks, 2) €4.8 billion to pay the interest on government loans, 3) €1.3 billion to cover outstanding financial obligations of the government and 4) €600 million to finance the estimated budget deficit of 2012. The revolving door between the government’s top level positions and the investment & commercial banking high level positions, is apparent. Mr. Stournaras was: I) A special advisor to the Bank of Greece (1989-1994) on monetary policy issues. II) From 2000 to 2004 the Chairman and Chief Executive Officer of the Emporiki Bank and the Vice Chairman of the Association of Greek Banks, III) From 2005 to August 2008 the managing director of Kappa Securities.

    Has anyone wondered how the Greek banks are planning to utilize the €24.8 billion? The money will likely be used to offset the PSI losses, to purchase other banks and to give hefty bonuses to top and mid level bank managers. The primary goal of bank consolidations is to maximize their profits by closing a number of branches and laying off a number of redundant employees. The unemployment benefits of the laid off bank employees will then be paid by the taxpayers. The expectation that the recapitalized Greek banks will appropriate a substantial portion of the funds to increase the liquidity of the market, is a wishful thinking. Pretty soon there will only be four too big to fail banks; the National Bank of Greece, the Bank of Greece, the Alpha Bank and the Bank of Piraeus. The Rothschild family will then complete its take over of the Greek financial system.

    • Which is indeed the case, and also a micro-snapshot of what is happening all over Europe. Resulting in incomprehensible situations like Santander bank (Spain) being “bailed out” and then promptly purchasing RBS, or Anglo Irish Bank (Irl) being closed, but over a period of minimum 10 years, allowing the state appointed friends and relations in management of a closed bank to collect 10 years of fat wages and bonusses at the expense of the Irish taxpayer. Just to make you really sick first thing in the morning, 32 employees of this closed bank earn over 200k each a year, guaranteed for the next 10 years! The bank also employs 93 private, external contractors to help close it down, but the Irish government refuses, despite several queries, to reveal who these “contractors” are. Friends and family again? And why does a bank need 93 contractors to close its doors?
      Greece is indeed no worse than anywhere else and the rot does, like everywhere else, go right to the top. Still does…
      Once again, this whole bailout scam is not about people, it is not about countries, it is about people and countries paying for extortionate amounts of money to consolidate and increase the insane workings and profits of the banks, which by the way are, in the vast majority of cases, owned the famous bond holders we officially have to pay back. The many are once again being conned by the few.