Saturday November 1, 2014 Search
Weather | Athens
18o C
13o 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)  
Disposable income of households fell 10.3 pct in one year
Banks unhappy with bad loans bill
State debtor numbers grew in September
Reform plan among conditions
Ministry swap halts talk of reshuffle as reforms eyed
Prime Minister Antonis Samaras on Friday appointed Nikos Dendias as defense minister, replacing outgoing Dimitris Avramopoulos, who assumes the European Commission’s immigration portfolio ne...
Turkish-Greek cooperation in Aegean helps stem flow of migrants
Closer cooperation between Greek and Turkish coast guard authorities has led to 11,000 undocumented migrants being prevented from entering Greek borders and returned to the neighboring count...
Inside News
BASKETBALL
Spanoulis played Zeus for Olympiakos against Neptunas
Captain Vassilis Spanoulis helped Olympiakos narrowly avoid an upset on Friday as it defeated Euroleague debutant Neptunas Klaipeda 85-81 in overtime in Lithuania to preserve its perfect sta...
BASKETBALL
Obradovic watches Greens thrash his Fenerbahce
The second homecoming of former Panathinaikos coach Zeljko Obradovic, now at Fenerbahce, was not as emotional as last year’s, but it was certainly was the night of an emphatic triumph for th...
Inside Sports
COMMENTARY
Checks and balances
The most interesting thing to emerge from a recent meeting of the Association of Judges and Public Prosecutors – at least as far as what made it into the press was concerned – was a statemen...
EDITORIAL
Opening hours on the agenda
An earnest discussion has finally started over whether Greek retail stores should be allowed to open every Sunday of the year instead of the current seven that have been assigned as part of ...
Inside Comment
SPONSORED LINK: FinanzNachrichten.de
SPONSORED LINK: BestPrice.gr
 RECENT NEWS
1. Spanoulis played Zeus for Olympiakos against Neptunas
2. Disposable income of households fell 10.3 pct in one year
3. Banks unhappy with bad loans bill
4. State debtor numbers grew in September
5. Reform plan among conditions
6. Ministry swap halts talk of reshuffle as reforms eyed
more news
Today
This Week
1. Checks and balances
2. Opening hours on the agenda
3. Archaeologists find underground vault at Amphipolis tomb
4. Man shot dead, woman injured in Vathis square attack
5. Greek retail sales rise for third month in a row
6. Cyprus’s Georgiades bets on economy for Irish-style bailout exit
Today
This Week
1. Austria’s creative bookkeeping beats Greece on secret debts
2. End of reason, end of humanity
3. Clean bill of health for Greek banks from stress tests
4. Samaras pledges action after flash floods in Athens
5. Eurobank, National Bank restructurings eliminate capital gap
6. Athens flood damage assessed, compensation payments to begin
   Find us ...
  ... on
Twitter
     ... on Facebook   
About us  |  Subscriptions  |  Advertising  |  Contact us  |  Athens Plus  |  RSS  |   
Copyright © 2014, H KAΘHMEPINH All Rights Reserved.