Monday September 1, 2014 Search
Weather | Athens
29o C
23o C
News
Business
Comment
Life
Sports
Community
Survival Guide
Greek Edition
Funding to end if bailout is rejected

 Outgoing finance minister warns of dire consequences if SYRIZA plans are applied

By Prokopis Hatzinikolaou

Finance Minister Filippos Sachinidis warned on Wednesday that should the next government reject the memorandum agreed between Athens and its official creditors, the latter will most certainly stop their funding immediately and Greece will need to make overnight cuts of 4.5 billion euros to cover its internal needs.

The outgoing minister added that if the proposals of the Coalition of the Radical Left (SYRIZA), as expressed by party deputy Dimitris Stratoulis on Tuesday, were applied, the budget deficit would soar to 2009 levels -- 24 billion euros.

If Stratoulis’s proposals for a return of the money collected in property tax and an end to salary and pension cuts, “then we would have to make further cuts of 24 billion euros, because that is where the proposals of Mr Stratoulis would lead us,” Sachinidis said.

Asked whether there was any chance that the memorandum might be renegotiated, Sachinidis said that agreements with the country’s creditors are not set in stone but could be flexible. He added, “We could proceed to changes and amendments to the memorandum.” But if the memorandum is rejected altogether, then “our institutional creditors will believe they have no obligation to continue funding Greece.”

The European Financial Stability Facility (EFSF) gave on Wednesday the green light for the disbursement of the second installment of the new bailout package, amounting to 5.2 billion euros, but Athens will only receive 4.2 billion on Thursday, with the rest to arrive in June, depending on the country’s needs, the EFSF suggested.

It remains unknown when and whether the following installment will arrive. The Finance Ministry had said on Tuesday that the public coffers can only cover the state’s expenses until June.

Bank sources expressed major concern regarding political developments and even suggested yesterday that a moderate trend of deposit withdrawal from banks had been observed in the aftermath of the Stratoulis statements, which also included a plan for the use of deposits to kick-start growth in the country. However, Stratoulis made it clear that deposits would be guaranteed up to a certain level. The threshold could be 100,000 euros.

ekathimerini.com , Wednesday May 9, 2012 (23:07)  
Greek economy shrinks at slowest pace since late 2008
Prospect of Greek grand prix back on the agenda; huge investment needed
Juggling lighter tax burden and fiscal targets
Government tries to get handle on NPLs
Hardouvelis optimistic ahead of Paris meeting
The Greek government has stepped up its efforts in advancing the structural measures it has committed to, Finance Minister Gikas Hardouvelis said Monday ahead of a two-day meeting with troik...
Erdogan visits Turkish-occupied Cyprus
Recep Tayyip Erdogan was on Monday expected in Turkish-occupied northern Cyprus in his first official visit as new Turkey President. Erdogan, who was sworn in as his country's first popularl...
Inside News
SOCCER
Fulham striker Mitroglou set to re-join Olympiakos
Greek champions Olympiakos Piraeus are set to re-sign Kostas Mitroglou on loan from English second tier club Fulham after the striker arrived in Athens for talks on Sunday. An Olympiakos spo...
SOCCER
Tough draw for Greek sides in Europa League group stage
Following Thursday night’s high, when all three Greek teams competing in the Europa League made it into the group stage of the competition, a harsh reality struck Friday as they found out wh...
Inside Sports
COMMENTARY
A great president
I fully understand the country’s need for political stability, a necessity which makes the election of a president by the current Parliament absolutely imperative. At the same time, however,...
EDITORIAL
Don’t feed the zombies
There can be no growth without resolving the issue of nonperforming business loans. However, the solution to this problem should not be based on old establishment criteria, such as political...
Inside Comment
SPONSORED LINK: FinanzNachrichten.de
SPONSORED LINK: BestPrice.gr
 RECENT NEWS
1. Hardouvelis optimistic ahead of Paris meeting
2. Erdogan visits Turkish-occupied Cyprus
3. Greek economy shrinks at slowest pace since late 2008
4. Laid-off cleaners to protest outside police headquarters
5. Protesters interrupt blessing ceremony at University of Athens
6. Deputy Education Minister Koukodimos resigns
more news
Today
This Week
1. A great president
2. Excavation work at Amphipolis reveals section of marble mosaic floor
3. Don’t feed the zombies
4. Greek officials meet to fine tune strategy for Paris talks with troika
5. Deputy Education Minister Koukodimos resigns
6. Protesters interrupt blessing ceremony at University of Athens
Today
This Week
1. Attack on gay couple in Athens leaves one man needing surgery
2. The battle against progress
3. Thessaloniki mayor Boutaris sworn in wearing yellow star amid Golden Dawn protests
4. Strong undersea quake occurs off island of Milos, felt in Athens
5. Greek quest for debt relief faces hurdles in Paris
6. Hardouvelis, ECB executive discuss bank program, stress tests
   Find us ...
  ... on
Twitter
     ... on Facebook   
About us  |  Subscriptions  |  Advertising  |  Contact us  |  Athens Plus  |  RSS  |   
Copyright © 2014, H KAΘHMEPINH All Rights Reserved.