Greek economic minister, George Stathakis said that he believes Greece’s new proposals to balance the governments books have broken the deadlock with its creditors.
Minister Stathakis expects the eurozone government heads to issue a communique later today that will say there is now a basis for a formal agreement with Athens to complete the current bailout program and release 7.2 billion euro of vital funds.
BBC economic editor, Robert Peston reports the Greek minister as saying, “technical work would need to be done in the coming days to formalize the agreement. But he was hopeful that Greece would be able to make its €1.5bn payment to the IMF on its due date of June 30 – and therefore avoid a devastating default.”
Mr. Stathakis said that the government had agreed with the IMF and eurozone governments that the targeted budget surplus would be 1 percent of GDP or national income this year, 2 percent next year and 3 percent year after.
There will be no agreement to cut Greece’s massive burden of debt despite Syriza’s earlier insistence on this. EU creditors say debt relief will be on the agenda for negotiation in the coming months. Surprisingly, he believes Greek PM Tsipras has done enough to prevent the ECB from ending its emergency support for the Greek banking system.
We look for continued bailouts because the EU and IMF fear the unknown greater than losing more money to Greece. At least, the EU power brokers can haphazardly manipulate EU economies by printing more money until all else fails.
Countries laden with debt including the U.S. have guaranteed market turmoil is quickly heading our way.
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