Greek Financial Crisis

[peteblue]

The Euro zone group are thinking of breaking their own lending rules.

despite UK objections
Developments in Brussels...... Reuters is snapping that the Commission is going to ignore George Osborne’s concerns, and recommend tapping the EFSM to fund Greece’s bridge financing.

That would mean breaking the agreement that the EFSM should not be used for eurozone rescues.

Paul Mason

✔@paulmasonnews
As Greek parties agonise over Summit Deal, IMF debt sustainability update spells out: it cannot work without partial debt write-off

View image on Twitter

Even more debt write off than last week.

Its a very clever, and typical, EU stitch up that both makes the UK pay and at the same time throws any blame onto the UK. The UK should stand firm on this.......

 

[hullefc]

The Euro group wouldn't have a clue how to run a taverna never mind the Euro zone. They are making things up as they go along. No wonder when they act like poodles doing Merkels and the the European right wing's dirty work. Not surprising really considering the German state bank, KfW, is the 'dumbest bank in the world'.

In the rush to implement a coup d'etat against Syriza and get it replaced by 'people of their liking' Golden Dawn, they are making themselves look the incompetent lot they are.

 

[Mutzo Nutzo]

It's all immaterial really as the Greek coalition partners will reject the bailout measures. The people will riot and there will be flares and Fanta Limon aots!

 

[hullefc]

Its a very clever, and typical, EU stitch up that both makes the UK pay and at the same time throws any blame onto the UK. The UK should stand firm on this.......

I don't think the UK complained when Ireland and Portugal got funding from the EFSM.

 

[Toffeelover]

The Euro zone group are thinking of breaking their own lending rules.

despite UK objections
Developments in Brussels...... Reuters is snapping that the Commission is going to ignore George Osborne’s concerns, and recommend tapping the EFSM to fund Greece’s bridge financing.

That would mean breaking the agreement that the EFSM should not be used for eurozone rescues.

Paul Mason

✔@paulmasonnews
As Greek parties agonise over Summit Deal, IMF debt sustainability update spells out: it cannot work without partial debt write-off

View image on Twitter

Even more debt write off than last week.

I think Osborne in this instance is right. If rules over the use of the EFSM are broken then what price other EU rules? Wonder what the feelings of the other non Euro countries are on this issue. To help Greece it should be down to those countries in the Eurozone.

 

[peteblue]

I don't think the UK complained when Ireland and Portugal got funding from the EFSM.

The EFSF Is the correct bucket from which to draw money to help Greece........

 

[Toffeelover]

Its a very clever, and typical, EU stitch up that both makes the UK pay and at the same time throws any blame onto the UK. The UK should stand firm on this.......

In the light of such activity and the other matters that we are supposedly in talks with the EU over, a NO vote at the referendum is beginning to look far more likely.

 

[Toffeelover]

The EFSF Is the correct bucket from which to draw money to help Greece........

Quite right Pete but has that bucket got any money in it?

 

[hullefc]

The EFSF Is the correct bucket from which to draw money to help Greece........

The EFSF will not provide any further financial assistance. The final EFSF assistance programme (for Greece) expired on 30 June 2015. However, even after this date, the EFSF will continue to operate in order to:

- receive loan repayments from beneficiary countries;

- make interest and principal payments to holders of EFSF bonds;

- roll over outstanding EFSF bonds, as the maturity of loans provided to Ireland, Portugal and Greece is longer than the maturity of bonds issued by the EFSF.

Replaced by the ESM. I even think in the ECB rules they can't lend to governments. Might be wrong like.

 

[peteblue]

I think Osborne in this instance is right. If rules over the use of the EFSM are broken then what price other EU rules? Wonder what the feelings of the other non Euro countries are on this issue. To help Greece it should be down to those countries in the Eurozone.

Exactly, there is now already an issue around 'trust' so the EU Commission need to be very careful about playing fast and loose........

 

[peteblue]

Quite right Pete but has that bucket got any money in it?

Well the emergency fund, the EFSM, is only authorised to use up to €60Bn and Ireland and Portugal have already taken most of that. The EFSF could go up to €440Bn.....either way, it's a Eurozone issue......

Edit......the EFSF can apparently go up to €1Tn ........

 

[hullefc]

I think Osborne in this instance is right. If rules over the use of the EFSM are broken then what price other EU rules? Wonder what the feelings of the other non Euro countries are on this issue. To help Greece it should be down to those countries in the Eurozone.

They make the rules up as they go along to suit their political economy agenda.

 

[peteblue]

The EFSF will not provide any further financial assistance. The final EFSF assistance programme (for Greece) expired on 30 June 2015. However, even after this date, the EFSF will continue to operate in order to:

- receive loan repayments from beneficiary countries;

- make interest and principal payments to holders of EFSF bonds;

- roll over outstanding EFSF bonds, as the maturity of loans provided to Ireland, Portugal and Greece is longer than the maturity of bonds issued by the EFSF.

Replaced by the ESM. I even think in the ECB rules they can't lend to governments. Might be wrong like.

So the ESM is the new bucket and we are not part of it........

 

[hullefc]

So the ESM is the new bucket and we are not part of it........

I think you may have been thinking of the EFSM, which the Uk does pay into.

"The Commission fund, backed by all 28 European Union members, has the authority to raise up to €60 billion. The EFSM is rated AAA by Fitch,Moody's and Standard & Poor's.[4][5] The EFSM has been operational since 10 May 2010.[6].

The EFSF ceased to make loans on 30th June 2015.

Those wanting to punish Greece are attempting to make it up as they go along.

 

[peteblue]

I think you may have been thinking of the EFSM, which the Uk does pay into.

"The Commission fund, backed by all 28 European Union members, has the authority to raise up to €60 billion. The EFSM is rated AAA by Fitch,Moody's and Standard & Poor's.[4][5] The EFSM has been operational since 10 May 2010.[6].

The EFSF ceased to make loans on 30th June 2015.

Those wanting to punish Greece are attempting to make it up as they go along.

I think that's what I said, the EFSM is an emergency loan vehicle (of which we are a part), the EFSF was for the Eurozone countries only and it has now been replaced by the ESM (Eurozone)........anyway they can all bugger off and use their own money........