Review of the Fund’s income position for FY 2011 and FY 2012. Fourth Review Under the Stand-By Arrangement and Request for Modification and Waiver of Applicability of Performance Criteria. This would leave Greece with a public external debt of 88 per cent of GDP, which would rise again with new loans from the IMF and EU and recession in the wake of continued austerity.Īll figures from IMF. A 50 per cent reduction in this would be €132 billion, leaving a remaining debt of €197 billion. We estimate Greece’s debt owed to private creditors (including the ECB) is €264 billion. This does not include the Greek bonds bought by the European Central Bank, which we presume would be included in any debt write-down. The IMF and EU have so far lent the country €65 billion since May 2010 20 per cent of Greece’s debt. ATHENS, Greece (AP) - Greece is planning to launch a public offer for a massive bond swap designed to knock euro107 billion (142 billion) off its debt held by banks and other private investors. Greece’s public sector external debt is 146 per cent of GDP €329 billion. The UK’s current government foreign debt is around 15 per cent of GDP (IMF figures). In contrast, when it defaulted at the end of 2001, Argentina’s government foreign debt was 80 per cent of GDP (World Bank figures). The IMF projects it will make a profit of $1.2 billion in 2011 rising to $2.3 billion in 2012, primarily from their lending to countries such as Greece and Ireland, as well as developing countries such as Pakistan and Jamaica. Greece was in a deep recession, its economy shrinking for a fifth consecutive year, and unemployment was climbing inexorably toward the nightmarish milestone of 25. The loans from the IMF and EU are at higher interest rates than their own borrowing, which means they are making money from lending to Greece. Now, despite her decision to back a writedown of a significant part of Greece’s debt, she was faced with the rise of forces in Greece both on the far left and right of the political spectrum whose raison d’etre appeared to be waging war on the German approach to the Greek and by extension European debt crisis. There needs to be much larger cancellation of Greek debt, possibly including that created by the IMF and EU loans which have already bailed-out some of the reckless bank lending.” It makes no sense to write-off some debt, whilst creating an even bigger pot of loans. “The IMF and EU continue to base their decisions on how to save the money of reckless banks, rather than providing light at the end of the tunnel to the people of Greece. Including the debt owed to the IMF and EU, Greece’s total foreign debt would still be 90 per cent of GDP. Even if private creditors are made to write-down 50 per cent of their remaining debt, this will no longer be enough to save Greece from the debt and austerity trap. Greek families holding Government bonds were included in the Private. “For the past 18 months the IMF and EU have been bailing out banks through giving new loans to Greece. To avoid defaulting on its debt, Greece turned to the European Union and IMF for. Jubilee Debt Campaign Senior Policy Officer Tim Jones said: A 50 per cent write down in debt owed to private creditors would still leave the Greek government with a foreign debt of 90 per cent of GDP. Twenty per cent of Greece’s debt is now owed to EU bodies and the IMF. Yesterday the IMF called for a “full write-off” of €53.1 billion in the Greek loan facility if the economy contracted further with no payments for 20 years.Jubilee Debt Campaign today warned that the if the rumoured 50 per cent write-down in Greece’s debt owed to private creditors actually happens, it will not be enough to get the country out of its debt and austerity trap. There was no austerity they were willing to oppose and, indeed, most of the austerity was put forward by the Irish themselves.Ģ - Because we elect politicians to Government without the balls to go and represent us as a European equal - Remember the Enda Kenny pat on the head from Sarkozy.ģ - They are scared ************************less of the rise of SF who have consistently supported the Greeks and so are worried about their own electoral prospects as a consequence. Remember "Labour's way or Frankfurt's way". Why are they even opposing Greece in the first place?Īre they putting their own interests first before Ireland?ġ - Because they do not want to face up to the reality that they did absolutely nothing for Ireland in negotiations with the troika. Greeces debt crisis cannot be solved without larger write downs on Greek debt and governments are trying to persuade banks to accept this, German Finance Minister Wolfgang Schaeuble said on Sunday, just days ahead of a key EU summit. This has been terrible news for official Ireland as their strategy for opposing Greek debt write down looks as if it will blow up in their faces. Yesterday the IMF called for a full write-off of 53.1 billion in the Greek loan facility if the economy contracted further with no payments for 20 years. Official Ireland - comprising of FF/FG/Lab/Renua, their lick arses in the media (bailed out Independent newspapers & RTE) and "independent" commentators - appear to have taken a noticeable hard stance on Greece.
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