/ world today news/ In the coming days, Athens may issue new short-term bonds for over 1 billion euros. Time to discuss economic reforms is running out, warn Greece’s EU partners.
Debt-ridden Greece unexpectedly sought additional liquidity in the capital market. Public debt management agency PDMA announced that €1.15 billion of short-term bonds could be issued over a period of 13 weeks. The profit will be up to 2.7% – as at the auction held last month.
The Greek government took this step because today it will have to refinance its debt of 1.4 billion euros. Greek financial media believe that the remaining money will enter the treasury before that date. And after that, Athens will be able to auction additional shares.
Gevro? Oh no.
According to Greek Finance Minister Yannis Varoufakis, Athens is not preparing to introduce a new currency parallel to the euro to pay civil servants. “The two currencies are not a solution. The government is only discussing political options to solve the problem,” Varoufakis said.
In recent days, mainly in the international press, there have been reports that Athens, fearing complete bankruptcy, does not rule out the introduction of a new currency. The parallel (or additional) currency can become the beginning of the introduction of a new monetary unit. In this case, the state will release debt receipts / so-called IOU, which is consonant with the English I owe you/, with the help of which domestic debts, pensions and salaries will be paid.
Thomas Mayer, former economic head of “Deutsche Bank”, who already in 2012 suggested that Greece introduce a parallel currency /and name it “gevro”/, confirmed to “Handelsblatt” that at the end of April he met in Athens with Varoufakis and Greek Prime Minister Alexis Tsipras. According to Mayer, the current situation in the Eurozone and his old proposal for the introduction of a parallel currency were discussed at the talks.
There are no plans for a referendum or new elections
At the same time, the Minister of the Interior, Nikos Voutsis, refuted the information that Athens will hold a referendum or new elections to solve the debt problem. “We are striving for a full-fledged compromise,” Voutsis told Greek Mega TV.
Money in Greece may soon run out. The release of 7.2 billion euros under the current bailout program depends on whether the Eurogroup approves the Greek government’s reform program. On Monday, at another meeting in Brussels, the parties did not achieve any breakthrough. Finally, German Finance Minister Wolfgang Schäuble raised the question of a referendum for Greek citizens to decide on the reforms.
Time is really running out
The chairman of the Eurogroup, Jeroen Dijsselbloem, commented with skepticism on the negotiations with Greece. “We are dragging our feet,” said the Dutch finance minister. He urged Greece to hurry, reminding that “time is really running out”.
For the moment, Greece and the other EU member states are far from a compromise on the issue of the necessary reforms. Dijsselbloem pointed out that by the end of June, before the money can be released to Greece, not only the relevant agreement must be reached with Athens, but also the approval of all national parliaments.
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Analysis of Deutsche Welle.
Berlin / Germany
#Athens #Gevro
