Tuesday Jul 29, 2014 Search
Weather | Athens
31o C
24o 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)  
MPs question whether ELSTAT chief should stay
Thessaloniki metro workers see more delays
Water company eases off debtors with under 3,000 euros outstanding
Central Macedonia police arrest Serb wanted in Croatia for war crimes
Bourse benchmark drops below 1,200-point level again
The Greek bourse reverted to a downward course on Tuesday, with the Athens Exchange (ATHEX) general index ending at 1,195.96 points after shedding 1.43 percent from Monday’s 1,213.31 points....
Greek dairy company Fage wins yogurt case in Britain
Greece's leading dairy company Fage said on Tuesday it had conclusively won a long legal battle in Britain to block a US-based rival from marketing strained yogurt as 'Greek yogurt.' Britain...
Inside Business
VOLLEYBALL
Volleyball national team second in European League
Much as the national volleyball team tried to repeat in the finals of the European League the feat it had achieved in the semifinals, it failed to overturn the advantage Montenegro had got f...
SOCCER
Ranieri says he has little to change in Greek national team
The Hellenic Football Federation (EPO) presented Claudio Ranieri as the new Greece coach for the next couple of years, after the Italian manager signed his contract in Athens on Friday. “I l...
Inside Sports
COMMENTARY
Through insecurity comes optimism
Prime Minister Antonis Samaras recently expressed his optimism regarding the quota of 180 Parliamentary deputies required for the election of Greece’s next president, in order for the countr...
EDITORIAL
Futile policy
The policy that Israel has been pursuing vis-a-vis the Palestinians is wrong and futile. Current tactics have failed to resolve the security issue and, at the same time, they are rapidly dra...
Inside Comment
SPONSORED LINK: FinanzNachrichten.de
SPONSORED LINK: BestPrice.gr
 RECENT NEWS
1. MPs question whether ELSTAT chief should stay
2. Thessaloniki metro workers see more delays
3. Water company eases off debtors with under 3,000 euros outstanding
4. Central Macedonia police arrest Serb wanted in Croatia for war crimes
5. Thousands of TV viewers to lose analogue signal Friday
6. Hikers spot large fish kill at mouth of Spercheios River
more news
Today
This Week
1. Greece names fifth privatization agency chief in four years
2. Archaeological council bans international climbers' gathering at Meteora
3. Venizelos to meet Nimetz in Athens
4. World’s largest solar boat on Greek mission
5. Tsipras discusses Cyprus with Anastasiades in Athens
6. Municipal engineer dies in Thessaloniki following workplace accident
Today
This Week
1. Climber dies in Mount Olympus fall
2. Unequal after death
3. Greek sovereign debt at 174.1 percent of GDP in first quarter
4. Hedge fund Dromeus turns Greek tragedy to triumph with 160 pct gain
5. Quadriplegic woman on life support 'dies due to unpaid power bills'
6. Front-line threats
   Find us ...
  ... on
Twitter
     ... on Facebook   
About us  |  Subscriptions  |  Advertising  |  Contact us  |  Athens Plus  |  RSS  |   
Copyright © 2014, H KAΘHMEPINH All Rights Reserved.