Greece says can pay wages and pensions, needs deal by end of May

[Bosonic]

Source: Reuters

Greece's government will pay public-sector wages and pensions in May but needs an agreement with creditors by the end of the month, its spokesman said on Monday, amid growing fears the country is on the verge of bankruptcy.

Without aid or access to debt markets, Athens is close to running out of money - it had to empty an International Monetary Fund reserves account to make a debt payment to the IMF last week. Investors dumped Greek stocks and bonds on Monday over worries Athens could miss a payment due next month.

Asked about an IMF payment falling due on June 5, spokesman Gabriel Sakellaridis reiterated the government's position that it aims to service all its obligations. Asked if the government would pay wages and pensions this month, he said: "Yes".

But he said the government expected to make a deal with the European Union and IMF creditors this month, with an agreement on a technical level struck by May 19. Talks at this week's EU summit in Riga would follow, then a possible emergency meeting of euro zone ministers before the end of May.

Read more: http://www.reuters.com/article/2015/05/18/us-eurozone-greece-payments-idUSKBN0O30XA20150518

[rdking647]

1. the smartest think greece can do is default and leave the euro

go back to the drachma. thee is no way they will ever be able to repay the IMF and others in euros.
if they were to go back to the drachma they could devalue their currency.

[cosmicone]

2. Their government owned companies will then be seized

to satisfy creditors.

Greece relies on international banking and exports. If they cannot do normal trade, they will have a massive depression and hungry people.

They should at lease roll back pensions and raise the retirement age. Why should ordinary taxpayers in Germany, France and Netherlands support full pension (100% of the last wages) after retirement at 50?

[Nihil]

3. I'd think so too.

> raise the retirement age.

I know that the recent "governments" in Greece have made changes (on paper) in
the last year or so but when the UK raised my retirement age from 65 to 67, the
Greeks were still at *57* ... count me less than sympathetic to their claims ...