Greek PM Samaras to Meet Barroso, Van Rompuy in Brussels; Tranche Release Timetable

A day after the Eurogroup meeting, Greek Prime Minister Antonis Samaras will meet EU Commission President Jose Barroso and EU Council President Herman Van Rompuy in Brussels today. The meetings are scheduled for after 1 p.m. on Tuesday.

Samaras is expected to raise the issue of the disbursement of the 31.5 billion euro bailout tranche and seek an immediate solution to the problem.

According to in.gr, Samaras will also raise the issue of the tranches due last September and upcoming November totalling 13 billion euro.

The 31.5-billion-euro tranche was due last July/August, however the whole process of  ‘structural reforms, spending cuts and bailout aid’ was delays due to parliament elections that took place in May and June.

The Eurogroup finance ministers agreed to give the “green light” for the two-year extension of the Greek fiscal program, but  important decisions on the Greek debt crisis, including the disbursement of the tranche, have been postponed for November 20th 2012.

On Monday night, after the Eurogroup meeting, Greek finance minister Yiannis Stournaras told reporters, that the disbursement of the tranche will be due after November 26th.

According to Stournaras, the timetable for the tranche release looks like that:

• Troika report will be completed on Nov 17th
• Eurogroup finance ministers will approved it on Nov 20th
• EZ/EU member-states parliaments will vote for the new Greek aid

The “green light” for the tranche will be turned on on Nov 26th during a Eurogroup meeting either per teleconference or via physical presence

Eurogroup-IMF Meeting on Greece Agreed They Disagree; Next Meeting Nov 20/2012

The eurogroup meeting ended on Monday night with no green light for Greece to receive the much anticipated 31.5 billion euro bailout tranche. Euro zone finance minister and IMF officials meet to discuss the Greek debt crisis and find what Christine Lagarde described as a ‘real solution for Greece’.

Stournaras kisses Juncker

EZ finance ministers agreed to give Greece a two-year extension of the bailout program to meet fiscal tagets. This extension will make additional aid of 30 billion euro necessary. EZ, ECB and IMF officials, the Troika, could not find the solution as who will pay this financial gap.

The final decision on the disbursement of  Greek bailout tranche and the method to make the country’s debt sustainable are postponed for November 20th 2012.

Eurogroup chief Jean-Claude Juncker and European Monetary and Economic Affairs Commissioner Olli Rehn praised the Greek government for passing the latest package of fiscal and structural reforms but International Monetary Fund managing director Christine Lagarde suggested that some “chapters” remain to be settled.

“The Eurogroup welcomes efforts by Greek authorities to bring program back on track,” said Juncker. “The Eurogroup acknowledges the considerable efforts of the Greek citizens.”

“All those who openly dismiss the potential of the Greek program to return fiscal sustainability should dwell on the improvement in the country’s structural budget balance,” said Rehn. (read more ekathimerini)

Monday’s eurogroup meeting must have been one of the difficult kinds with EZ and IMF officials and Germans apparently having grave differences on certain issues.

Stournaras and Lagarde

Earlier on Monday evening, some Greek media reported of an adamant Germany insisting of pushing its own terms and conditions and thus despite resistance from the IMF. With Greece being stuck among the two of them and at risk of being crushed.

Germany reportedly was firmly against reductions of interest rates cuts for the money already paid to Greece. The IMF considers it as imperative in order to give a breath to Athens.

Beyond that, Germany went even a step further, thus challenging the Greek common sense: Berlin – or better say Finance Minister Wolfgang Schaeuble, wanted a strict supervision of the Greeks that they would carry out the reforms.

  Greek FinMin & the IMF

Meanwhile as parts of the Troika report were published on Greek press it looks as if additional austerity measures of 6.4 billion euro will be needed for 2015-2016. This news must be a shock for Greeks who will get face to face with 13 billion euro austerity 2013-2014.

the relevant austerity bill was voted last Wednesday at the Greek Parliament with Prime Minister Antonis Samaras assuring coalition government lawmakers and the public that “these are the last austerity measures.” But maybe he meant, the last austerity measures this government will take.

Recently Samaras had also said that the country had money until November 16th, i.e. upcoming Friday, and therefore the austerity bill and the Budget 2013 should be adopted by the government in order to receive the bailout tranche.

Samaras will meet with EC President Barroso on Tuesday morning.

Will Greece go bankrupt next Friday without the bailout tranche?

EU Commissioner Olli Rehn insisted that there would be no problems on Friday, when Greece has to rollover 5 billion euros of debt. It is planning to do so by issuing T-bills and Rehn said Greek banks would be in a position to buy them even if they are cut off from the Eurosystem.

PS and I thought Greece had no money to pay wages and pensions. But it was only for 5-billion-euro rollover of debt. Phew!

Eurogroup-Greece: Germany Firm Against Interest Rates Cuts, Want Reforms Supervision

It looks as if there is a thriller going on in Brussels, during the Eurogroup meeting on Greece. Some Greek media report of an adamant Germany insists of pushing its own terms and conditions and thus despite resistance from the IMF. With Greece being stuck among the two of them and at risk of being crushed.

Germany reportedly is firmly against a reductions of interest rates cuts for the money already paid to Greece. The IMF considers it as imperative in order to give a breath to Athens.

Beyond that, Germany goes even a step further, thus challenging the Greek common sense: Berlin – or better say Finance Minister Wolfgang Schaeuble, wants a strict supervision of the Greeks that they will carry out the reforms.

Details of how this “strict supervision” will be imposed in real Greek life have not reached Athens yet. At least, not the media.

Meanwhile Dutch Finance Minister said that the Eurogroup may meet again this week on Greece.

Greek PM Samaras to Eurogroup: Que Sera, Sera…

Obviously adopting a fatalistic approach to the delayed bailout tranche, Greek Prime Minister Antonis Samaras, sent a message to Eurogroup partners, the EU and the IMF:

“We as Greece did what we had to do, the issue will be resolved between those who have the problem, ” Samaras told reporters after a marathon meeting he had with several ministers.

He declared confident that “we will have a very positive development in terms of the tranche release” and commented:

“I do care what money the country will receive, how the banks will irrigate the economy with liquidity, how the state will repay its outstanding debt [to private persons] and how businesses will stop from bankruptcy because the state is not honest.”