Greece's Euro Exit Seems Inevitable - page 16

[Greko]

Germany won't let Greece out of EU. If Greece is out - Spain/Italy is next and it'll launch EU-destruction chain reaction.

[Bjork]

This circus with Greece is started to get boring:/

[Jove]

My guess Greece won't exit EU and this question will be solved by September-October

[morro]

maluudas:
My guess Greece won't exit EU and this question will be solved by September-October

Taxes went today up from 13 to 23%

That will not be enough - and with the wave a prices jumping more than necessary (no regulation made to limit the prices) Greece will be forced to by everything imported. That will completely destroy Greek industry and that means the Greece will never be able to repay debt. The first of the slave countries in the EU has been created. Now the next

[thenews]

The Greek Economy Is Finished! A Quarter Of Firms Shifting Abroad

Capital controls imposed by the Greek government are taking a heavy toll on Greek businesses, according to a new report from Endeavour Greece. With over two-thirds of respondents reporting a "significant drop in revenues," and 1 in 9 firms forced to suspend production due to shortages of raw materials (unable to buy due to capital controls), the problems created by The Greek government's action seem asymmetric as almost a quarter (23%) of firms are now "planning to transfer their headquarters abroad for security, cashflow, and stability reasons."

As ekathimerini reports,

Endeavour Greece, a non-profit group that supports entrepreneurs, found that 58 percent of the 300 companies it surveyed between July 13 and July 17 reported a "significant impact on their operations caused by the limitations imposed to cross-border transactions."

"Many of these companies cannot import raw material or have access to foreign services and infrastructure," the group said in a statement, adding that 23 percent "plan to transfer their headquarters abroad for security, cash flow and stability reasons."

More than two thirds of the companies – 69 percent – reported a "significant drop in turnover," with 11 percent forced to decrease or suspend production due to shortages of raw materials.

Greece imposed a raft of capital controls on July 29, closing the banks and restricting cash withdrawals in a bid to prevent a disastrous bank run from draining money out of the financial system.

Banks reopened on Monday and restrictions on cash withdrawals have been partially relaxed, though the capital controls remain in place.

Endeavour Greece reported that businesses were facing "significant impediments" due to the continuing ATM limits, but on "a smaller scale."

Nearly half of the companies – 45 percent – said they had been forced to postpone payments to suppliers.

read more

[thenews]

Greece's Euro Exit Back on the Agenda Next Year, Economists Say

Don’t pack away the currency presses just yet, Greece’s euro exit may be back on the table next year.

There’s still a danger that Greece will be forced out of the euro region by the end of 2016, according to 71 percent of respondents in a Bloomberg survey of 34 economists. Seventy percent said they reckon Greece should be safe for the rest of 2015, though almost half said they thought the 86 billion-euro ($93 billion) bailout package Prime Minister Alexis Tsipras is targeting will prove to be too small.

Greek bonds plummeted during Tsipras’s six-month clash with the country’s creditors

While Tsipras is checking off the requirements to qualify for a third bailout, the flaws in the agreement he hammered out with euro-area leaders last week are fueling concerns that Greece will struggle to implement the three-year program.

The European creditors are refusing to firm up their commitment to restructuring Greece’s debts, a move the International Monetary Fund says is essential for the country to stabilize its finances. There are also doubts about the 50 billion-euro target for asset sales and, more fundamentally, the merits of forcing more austerity on a shattered economy.

“Without some form of debt relief, the package will never be big enough,” Peter Dixon, a global economist at Commerzbank AG in London, said in his response to the survey. “Loading additional loans onto a country which cannot afford to repay them corresponds to Einstein’s definition of insanity: Trying the same thing over and over again in the expectation of different results.”

Markets Closed

Greek bonds plummeted during Tsipras’s six-month clash with the country’s creditors, with the yield on the 2017 bonds exceeding 30 percent before most trading was halted on June 26. The same debt was yielding less than 4 percent in October and about 10 percent when Tsipras took power in January.

Greek financial markets will remain closed at least until parliament has voted on a second package of bailout measures on Wednesday, according to two officials. The government is drafting a decree to allow selective waivers on capital controls, and the best-case scenario is for markets to reopen Thursday, one of them said.

The government submitted a bill detailing its next set of measures to parliament in the early hours of Tuesday. The bill includes the implementation of a European Union directive on how to resolve failing banks.

Tsipras did manage to reopen the country’s banks on Monday and he will ease somewhat the restrictions on withdrawals over the next two weeks. The government also cleared its 2 billion euros of arrears with the IMF, made an overdue payment of 470 million to the Greek central bank and covered 4.2 billion euros of interest and principal payments to the European Central Bank.

The creditors plan to wrap up talks on the terms attached to the country’s new bailout by Aug. 6, and disburse the first tranche from the program to the debt-stricken country by Aug. 17, an international official with knowledge of the matter said. Greece has to pay the ECB another 3.2 billion euros on Aug. 20.

ECB President Mario Draghi last week joined the IMF in calling for debt relief to help the Greek economy recover but German Chancellor Angela Merkel ruled out a cut in the nominal value of the country’s debt and said she’s not prepared to ease the repayment terms just yet.

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[morro]

Greeks already lost 25% of industrial production with another 47% preparing to leave the country. They are going to be left with no way to get a job in their own country if they don't leave EU

[myname]

morro:
Greeks already lost 25% of industrial production with another 47% preparing to leave the country. They are going to be left with no way to get a job in their own country if they don't leave EU

And as atop of Hypocrisy S&P increased credit rating of Greece to CCC+. They were given 7. billion, right away had to give back 6.8 billion and the remaining 4.. million is not enough for half a day of banks, and the were awarded higher credit rating ?

A country that will have nothing in only a month or two - no company will stay to work there.

[thenews]

Greek bailout vote to test Syriza party rebellion

Greece's leftist government urged disgruntled lawmakers on Wednesday to back reforms required for talks on a rescue deal to start, as Prime Minister Alexis Tsipras faced his second major test in parliament in a week.

A first set of reforms that focused largely on tax hikes and budget discipline triggered a rebellion in his party last week and passed only thanks to votes from pro-EU opposition parties.

The bill lawmakers will vote on late on Wednesday covers rules for dealing with failed banks and speeding up the justice system -- two more conditions set by the euro zone and IMF to open negotiations on a 86 billion euro rescue loan.

The legislation is all but certain to pass, despite planned protests, after opposition parties said they would back it.

But with divisions in Tsipras' leftist Syriza party laid bare by last week's rebellion by 39 deputies, Wednesday's vote will be closely monitored to see if he loses even more support.

"We are making an effort to have fewer dissenters," Health Minister Panagiotis Kouroumplis told Greek television.

He said there were doubts about whether the new measures could pull the recession-hit economy out of its impasse. "But since we agreed, we must implement them."

The government hopes negotiations on the bailout deal can start this week and be wrapped up by Aug. 20.

"It's extremely important to wrap up this prior actions procedure so that we can start negotiations on Friday," Finance Minister Euclid Tsakalotos told lawmakers as they began debating the bill.

Together with his coalition partners from the right-wing nationalist Independent Greeks, Tsipras has 162 seats in the 300-seat parliament. But last week's rebellion cut his support to just 123 votes and government officials have said elections are likely in the autumn.

"Rendezvous in September," the pro-Syriza Avgi newspaper wrote on its front page, saying a party congress was likely then, with elections lurking in the background.

"Possibly, we will go to elections when this is needed," government spokeswoman Olga Gerovasili told Greek radio. "Right now, this won't be useful. It's more important that the country returns to a kind of normality," she said.

Tsipras himself has said he disagrees with the measures demanded by Greece's euro zone peers and other international creditors for talks to proceed on a third bailout to save the country from bankruptcy.

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[whisperer]

All forecast expect Grexit - 2 years at the most before it happens