Tuesday September 16, 2014 Search
Weather | Athens
28o C
21o C
News
Business
Comment
Life
Sports
Community
Survival Guide
Greek Edition
Finland rejects speculation Greece to receive new aid package

Speculation on whether Greece needs another bailout is premature and Europe needs to wait and see whether measures agreed to date help the nation regain control of its debt, Finland’s Prime Minister Jyrki Katainen said.

“The decisions taken now are the correct ones to support Greece in its extremely difficult situation,” Katainen said in an interview in Helsinki on Thursday. “We are committed to the deal by the finance ministers. There’s no point in conjecturing on what that might mean in the future.”

Euro area finance ministers this week drew up a debt-relief agreement for Greece that reduced the rates on bailout loans and suspended interest payments for a decade. The government in Athens was also given more time to repay its debt and will be able to buy back its bonds. German Finance Minister Wolfgang Schaeuble and Dutch Prime Minister Mark Rutte have since hinted at the prospect of further aid amid conjecture the measures may prove inadequate to spur a sustainable recovery.

The ultimate objective is to ensure Greece stays inside the euro, Katainen said. A splintering of the currency bloc would have devastating consequences for all 17 members, he said.

“Our aim isn’t to force Greece out of the euro,” he said. “That would be a catastrophe for Greece and the rest of the euro area.”

Finland is one of four remaining AAA rated euro nations that have been firm in their demands that bailout recipients comply with strict austerity programs. Finland and Germany have rejected joint borrowing and pushed fiscal policy coordination to ensure euro members’ budgets remain sustainable.

Collateral deal

Finland is the only euro member to have negotiated collateral in exchange for backing emergency loans that don’t give it seniority. For that privilege, the nation was required to fork over its contribution to the European Stability Mechanism’s capital upfront. Finland also agreed to forgo any profits on loans made by the temporary fund, the European Financial Stability Facility.

This week’s accord also cleared Greece to receive a 34.4 billion-euro ($44.7 billion) loan installment next month. The deal targets a reduction in government debt to 124 percent of gross domestic product by 2020 and below 110 percent of GDP by 2022.

“Whether Greece will attain this goal is anyone’s guess,” Finnish Finance Minister Jutta Urpilainen said in an interview in Helsinki. “It’s largely up to Greece, on how well they are able to stick to their commitments and implement reforms.”

Moody’s warning

Even with those measures, Greece’s debt load, which will peak at almost twice the size of its economy in 2014, remains unsustainable, Moody’s Investors Service said Thursday. The chance of a default is “high,” Moody’s analysts wrote.

“Of course the euro area, at least Finland, think it has realistic chances of achieving this,” Urpilainen said. “That’s why we’ve been flexible in certain issues.”

The cost of easing Greece’s debt terms will be about 2.78 billion euros for Germany in the form of forgone profit from future European Central Bank Greek holdings, Schaeuble said. The Netherlands faces a loss of 70 million euros a year over the next 14 years, according to Finance Minister Jeroen Dijsselbloem.

Finland’s bill from the measures is about 10 million euros from lower rates on bilateral loans, Urpilainen said. That doesn’t include lost profits to the Bank of Finland, she said Wednesday. The focus now is on executing the decision, Urpilainen said.

“We shouldn’t double-guess on what’s going to happen in the future, instead we should implement the decisions that have been taken now,” Urpilainen said. “We should proceed step-by- step.” [Bloomberg]

ekathimerini.com , Thursday November 29, 2012 (14:47)  
Greece will not become Weimar, Samaras says
Mobile units on Samos and Lesvos proving useful for migrants
Opposition demands answers over NERIT resignations
TIF pledges to cost 11.3 bln euros, SYRIZA says
Job creation is mostly seasonal
Employment in Greece rose by 1,311 jobs last month, according to figures for August from the Labor Ministry’s Ergani database that were released on Monday, but this increase had much to do w...
Primary surplus at 2.3 bln euros in end-August
The 2014 state budget showed a primary surplus of 2.3 billion euros on a cash basis in the first eight months of the year, the Bank of Greece announced on Monday. The cash deficit came to 2....
Inside Business
WATER POLO
Greece wins women´s U19 Europeans in water polo
Greece won the women’s European Under-19 Championship in Italy beating the host in Sunday’s final, for what was the country’s second gold medal in the competition’s history. The Greek teenag...
SOCCER
Veria alone on Super League summit
Olympiakos appeared in fine shape ahead of its Champions League premiere against Atletico Madrid on Tuesday, beating visiting OFI 3-0 on Saturday, but Macedonian minnows Veria are those that...
Inside Sports
COMMENTARY
Lost in the fog
I recently attended an event where one of the guests was a much talked-about personality of the center-left, a person who has never been part of a government administration. People kept goin...
EDITORIAL
Sending out a clear message
Few things are worse in politics than sending out vague or contradictory messages. Interestingly, there has been little else from the direction of the conservative-led government since the l...
Inside Comment
SPONSORED LINK: FinanzNachrichten.de
SPONSORED LINK: BestPrice.gr
 RECENT NEWS
1. Job creation is mostly seasonal
2. Primary surplus at 2.3 bln euros in end-August
3. Supermarket chains stifling traditional retail food stores
4. Hardouvelis sees great interest abroad in investing in Greece
5. Bourse quiet as investors sit and wait
6. Greece will not become Weimar, Samaras says
more news
Today
This Week
1. Central Athens traffic restrictions back in force on Monday
2. Democracy under Pressure | Live Streaming
3. Lost in the fog
4. Thessaloniki man dies in heavy rainfall on Sunday
5. Soccer fan in critical condition after Sunday clash to be transferred to Athens
6. Sending out a clear message
Today
This Week
1. A Greek God
2. Greece on standby
3. Avramopoulos appointed Commissioner for Migration and Home Affairs
4. Central Athens traffic restrictions back in force on Monday
5. EU bank tests may miss trillion dollar risk, study finds
6. Pavlos Fyssas murder trial expected to start before the end of the year
   Find us ...
  ... on
Twitter
     ... on Facebook   
About us  |  Subscriptions  |  Advertising  |  Contact us  |  Athens Plus  |  RSS  |   
Copyright © 2014, H KAΘHMEPINH All Rights Reserved.