After the rescue plan and wide .. Greece may move away from crisis

Source: Neno’s Place – A Community of Reality
URL: http://www.nenosplace.com/showthread.php?54384-After-the-rescue-plan-and-wide-Greece-may-move-away-from-crisis&goto=newpost

After the rescue plan and wide .. Greece may move away from crisis

23/02/2012

BAGHDAD – Al Sabah
Adopted the euro zone rescue plan hardly a new record for Greece $ 237 billion euro, hoping to avoid this state out of the monetary union, but without that it would allay fears about the future of the country.
A government source said that the Greek rescue plan, which provides for the write off 107 billion euros of debt of Greece to the private sector and its mechanisms that have been identified early Tuesday, the last two in Brussels, will be subject to a vote in the Greek Parliament on Thursday.
The same source said that the bill was deposited parliament after a cabinet meeting chaired by Prime Minister Lucas Papademos return from Brussels, and will be voting on the plan in an emergency this Thursday.
For his part, President Barack Obama that what has been reached «positive steps» in a telephone conversation with German Chancellor Angela Merkel welcomed the b »to agree on a new plan to save Greece».
Said White House spokesman Jay Carney that «the Europeans have taken significant measures in the face of the crisis», but he thought it was still necessary to «take additional measures».
He said Obama and Merkel «agree that the European Charter Financial expected, and the initiatives taken by the European Central Bank recently, and reforms in Spain and Italy, are positive steps in the face of crisis, the euro zone».
The agreement will allow «ensure the future of the country in the euro zone» as said Jean-Claude Juncker, President of the Eurogroup (Aurugrob) are of the view of many economists that Greece will be obliged eventually to withdraw from this region.
For his part, spoke European Commissioner for Economic Affairs Olli Rehn for «real opportunity to make a fresh start» and »the basic step for Greece and the euro zone». Includes agreement on the help from the public sector centered on loans of up to 130 billion euros until the end of 2014, On the other hand the write off a large portion of Greece’s debt to its creditors in the private sector banks and investment funds. He was the first program of support for Greece was decided in May 2010 amounted to $ 110 billion euros and it turned out it is not enough. are expected to attend the International Monetary Fund in this plan, but by providing funds lower than presented in previous assistance plans. And would decide in Maralamqubl. The agreement that was negotiated with the creditors of Greece from the private sector to write off 53.5 percent of the original value of the bonds in their possession, equivalent to cancel the 107 billion from the Greek debt, according to the statement issued by the committee of creditors of the private sector of Greece. Following a new round of protracted negotiations, and private creditors agreed to increase its contribution to the second plan to help Greece, after the agreement was provided so far to write off 50 percent of the debt, what will amount to their accounts in the actual loss exceeds 70 percent.
Under the plan support this, Greece is expected to be able to meet the entitlement to pay 14.5 billion euros which falls on March 20 and avoid defaults. Provided that banks meet the call for debt write-off enough.
The Prime Minister of Greece for «great satisfaction» with the agreement reached by adding in contrast to the reforms planned will be realized after the next election. Said Lucas Papademos told reporters after a meeting of finance ministers of euro zone countries in Brussels «We are very satisfied» on the agreement.
In contrast, Greece has pledged to take measures to strict fiscal austerity and reform its economy.
He said Papademos told reporters «We have to apply the program within the deadlines and effectively», adding that the current government «designed for that and I am confident that the government will be after the elections on much the same design on the application of the program because this is in the interest of the Greek people».
It is tentatively scheduled for early legislative elections in April and received European partners Greece guarantees from the two main parties, the socialist democracy and the new (right), that they would abide by the promises until after the election.
Plan was adopted, painful austerity worth 3.3 billion euros this year and provides for the reduction of the minimum wage and the reduction of pensions in particular.
But if the negotiations took a long time the most prominent reason is that donors of Greece identified a gap of several billion euro must be paid to be able to cut Greek debt to 120 percent of gross domestic product by 2020. This is the goal set by the International Monetary Fund to be considered it is possible to carry it over the long term. Was declared the European Commissioner for Economic Affairs that the creditors men will intensify surveillance for Greece to meet the rescue plan. Rehn said that «the Greek aid plan is based on the firm condition, it is provided to tighten control Greece and compel the presence of a permanent place for the European Commission Delegation »Greece in charge of helping to modernize the state apparatus.
Finally, the rescue plan will allow Greece to reduce debt to nearly 120.5 percent by 2020. To be able to get to that, the banks are not alone required to make efforts, and public authorities will also be paid more money by cutting interest rates on loans granted to Greece, as well as to contribute to the central banks in the euro area to do so.