High-ranking SYRIZA official and one of the party’s top economist, former deputy Prime Minister Yannis Dragasakis, admitted that the SYRIZA-led coalition government was unable to borrow money from third countries and that therefore it was obliged to sign the July 13th agreement. At the same time, he revealed that before the capital controls, Greece was very close to have to proceed to ‘deposits haircut’ because “the plan was to follow the Cyprus example.”
Speaking to economic news portal euro2day.gr, Dragasakis said that “the threats of capital controls started already on February 15th as part of the war that took place.”
The former deputy PM revealed that the Tsipras government had sought alternative ways to raise capital and avoid signing the 3. Memorandum of Understanding and the 3. bailout. Greece has contacted China, Russia, India and Venezuela, but without result. And borrowing was inevitable.
“We did a global effort to see if we can raise capital from third countries so that we can meet our then obligations (…) There were no such possibilities,” Dragasakis said “they didn’t give us”.
He indicated that the effects the recession will be short-lived and that recovery is expected as of 2016. The crucial factor is, however, is the triptych of recapitalization, lifting capital controls and debt restructure.
He admitted that there were errors and omission during the negotiations and that these influenced but they did not determine the end result. the end result was in the context of the correlations that exist in Europe.
Dragasakis said that he believes that the disclosure of Schaeuble’s draft [temporary Grexit] mobilized some countries to stand by Greece.
He spoke of a “peculiar war” during the negotiations of the last months.
Yannis Dragasakis warned that the country suffers under “accumulated reserves of unreliability”, something that the whole political system has to deal with.
PS I wonder what were the terms & conditions tabled by the third countries that forces SYRIZA to hard landing.