STOCK MARKET WATCH -- Wednesday, 4 June 2014

[Demeter]

15. Think again warn creditors after Greeks mull easing austerity

http://www.euronews.com/2014/06/02/think-again-warn-creditors-after-greeks-mull-easing-austerity/



The Greeks had been looking forward to some cheer from their government soon, with finances improving and encouraging signs of a return of confidence, and growth to the economy.

The government had been hinting that after years of austerity some of the pain was about the be relieved, for example by tax cuts.

However that idea has been shot down by Germany’s Finance Minister Wolfgang Schaeuble. He has urged continued discipline and in any case has not ruled out a third bailout before 2022, when the troika creditors’ group – the European Union, International Monetary Fund and the European Central Bank – says Greek debt will be at a sustainable level.

The IMF, which agreed with Schaeuble about keeping the screws tight in Greece, along with the ECB and European Commission, are in effect running policy in Athens.

However politically if last week’s European elections are a fair barometer, sentiment in Greece has shifted from making sacrifices to saying enough is enough. Syriza, the left-wing winners of the European poll, argue for very different EU policies to combat the financial crisis.

“Schaeuble’s warnings and the IMF’s supporting continued caution might disturb the Greek government’s plans. Following defeat at the European elections, it planned to announce the end of austerity, starting by cutting tax burdens. There had also been rumours that the finance minister was to be replaced. That’s now on hold and fresh questions about when the Greek austerity programme could end are being raised,” says euronews’ Symela Touchtidou in Athens.

IMF Approves Next Tranche of Greece’s Bailout

http://greece.greekreporter.com/2014/05/30/imf-approves-next-tranche-of-greeces-bailout/

The International Monetary Fund (IMF) approved the disbursement of a €3.41 billion installment of Greece’s bailout package on Thursday, ending six months of protracted negotiations.

During its meeting, the IMF board reviewed the latest report submitted by the head of its mission to Greece, Poul Thomsen, which goes into the progress made in the country under the terms of the 2012 international bailout program that required unpopular austerity reforms to help restore public finances and deal with the country’s enormous public debt.

The new disbursement is twice as much “given the delay in reaching agreement on the review” between the IMF and its bailout partners, the European Union’s executive, the European Commission, and the European Central Bank, IMF spokesman Gerry Rice said recently.

The IMF last issued €1.7 billion in July 2013, and has so far lent Greece about €11.4 billion under a four-year program meant to help the country recover from its sovereign debt crisis, and rebuild its economy.

In April, the Eurogroup Working Group gave the ‘green light’ for a massive €6.3 billion installment of Greece’s bailout package, while commencing talks on Greece’s promised and much-anticipated debt relief.