Monday December 22, 2014 Search
Weather | Athens
17o C
10o C
News
Business
Comment
Life
Sports
Community
Survival Guide
Greek Edition
IIF calls on eurozone to give Greece more time, lower interest rates

The Institute of International Finance urged global policy leaders to revive economic growth with measures including more public investment in Greece and easing terms of the nation’s bailout.

“Urgent policy adjustments are needed to avoid the stalling global recovery and address the strong negative spillover effects of national or regional developments on other parts of the world,” Charles Dallara, IIF managing director, wrote today in a letter to the International Monetary Fund’s steering committee.

Greece is trying to reach an agreement on austerity measures with officials from the European Union and IMF for the release of 31 billion euros ($40 billion) under the country’s bailouts. The Washington-based IIF, which represents more than 460 financial companies, said Greece should be given more time to meet deficit targets and lenders could accommodate the nation with lower interest payments.

“In the period immediately ahead, euro area leaders need to move more decisively to implement the announced measures in a timely manner to avoid a reversal of the recent broadly positive market sentiment,” Dallara wrote. That includes establishment of a single bank supervisor to recapitalize banks by the European Stability Mechanism and a new European Central Bank bond purchasing program.

Dallara’s letter comes before IMF and World Bank annual meetings in Tokyo Oct. 9-14 where officials will focus on implementation of the euro zone programs. Dallara said the meetings will take place at a “time of weakening global economic growth, high or rising unemployment and substantial downside risks.”

“The global economy is at a crossroads,” Dallara wrote. “Urgent policy adjustments are needed to avoid the stalling global recovery and address the strong negative spillover effects of national or regional developments on other parts of the world.”

ECB President Mari Draghi said today that the bank is ready to start buying government bonds as soon as the necessary conditions are fulfilled by any countries needing assistance. The ECB is ready to undertake Outright Monetary Transactions “once all the prerequisites are in place,” Draghi said at a press conference in Ljubljana, Slovenia, after policy makers left the benchmark rate at a historic low of 0.75 percent.

A month after Draghi unveiled the unprecedented bond- purchase plan to lower yields on government debt, Spain, the country most likely to take up the offer, is still mulling whether it wants to accept the conditions attached. At the same time, the euro-area economy probably entered a recession in the third quarter as the sovereign debt crisis damped spending and investment.

Dallara said euro member countries should agree to appropriate conditionality to allow the ESM and ECB to begin purchasing their bonds.

The European Union last month unveiled proposals for euro- area bank oversight. The IIF urged “a clear roadmap” on measures for the single bank resolution and a common deposit insurance framework to have an “immediate salutary effect on market confidence.”

[Bloomberg]

ekathimerini.com , Thursday October 4, 2012 (19:06)  
Political saga is harming liquidity
Bad timing for tenders as oil rates decline
Tax exemptions deprive state budget of over 3.5 bln euros
Teiresias to track letters of guarantee
Greek PM offers compromise solution with elections by end-2015
Prime Minister Antonis Samaras on Sunday presented a compromise solution to end a political stalemate that looks likely to send Greece to early general elections in about a month's time. Spe...
Environment Ministry to reconsider controversial bill
The government over the weekend appeared to backpedal on proposed amendments widely seen as compromising legislation protecting Greek forests as well as Plaka, Athens’s old quarter. The bill...
Inside News
SOCCER
Special day for Abidal, lucky one for PAOK
PAOK scraped through its Livadia challenge beating Levadiakos to remain on top of the Super League for Christmas, one point ahead of Olympiakos that enjoyed a great game at Kalloni and offer...
BASKETBALL
Explosive Barca unfazed by Panathinaikos, bomb scare
Panathinaikos lost 80-67 at home to Barcelona on Friday in a rather meaningless game at the end of the first group stage of the Euroleague, but the encounter will be remembered for the bomb ...
Inside Sports
INTERVIEW
‘Crisis of confidence will come back again and again,’ says Thomas Piketty
He’s treated like a rock star wherever he goes to lecture. His book “Capital in the 21st Century,” a study on income and wealth inequality from the 18th century to the present, recently tran...
COMMENTARY
Who lost Greece
If Greece collapses much will be said about where the fault lies. Sure, we all know the failings of Greek politicians. That said, much of the blame lies with outsiders who pushed Greece beyo...
Inside Comment
SPONSORED LINK: FinanzNachrichten.de
SPONSORED LINK: BestPrice.gr
 RECENT NEWS
1. Special day for Abidal, lucky one for PAOK
2. Political saga is harming liquidity
3. Bad timing for tenders as oil rates decline
4. Tax exemptions deprive state budget of over 3.5 bln euros
5. Teiresias to track letters of guarantee
6. Agenda
more news
Today
This Week
1. Greek PM offers compromise solution with elections by end-2015
2. Who lost Greece
3. ‘Crisis of confidence will come back again and again,’ says Thomas Piketty
4. Snubbing the moderates
5. Agenda
6. Bad timing for tenders as oil rates decline
Today
This Week
1. Samaras summons bond vigilantes with euro exit talk
2. A friendly yet firm message from Pierre Moscovici
3. Europe's drama in Greece needs final act to avoid tragedy
4. High stakes
5. On the edge but not gutless
6. Girl, aged 11, gives birth on Crete
   Find us ...
  ... on
Twitter
     ... on Facebook   
About us  |  Subscriptions  |  Advertising  |  Contact us  |  Athens Plus  |  RSS  |   
Copyright © 2014, H KAΘHMEPINH All Rights Reserved.