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Simitis Says Greece Needs New Debt Cut

Former Greek Prime Minister Costas Simitis.

Former Greek Prime Minister Costas Simitis.

Despite a $134 billion debt write-down last year and new international loans pouring in, Greece’s economy is still in such bad shape that the country needs another debt reduction, former prime minister Costas Simitis said he believes.

In an interview with German newspaper Handelsblatt published on Feb. 9,  Simitis said that since Greek public debt would be at 124 percent of GDP in 2020, another restructuring would be needed.

“A comprehensive solution requires total debt to be at a much lower level, substantially below 100 percent of GDP,” Simitis told the newspaper.

Simitis, the former PASOK Socialist leader whose administration has been blamed for creating some of the conditions that caused Greece’s economy to nearly collapse, said he was also fearful of more social unrest over unrelenting pay cuts, tax hikes and slashed pensions being imposed by the coalition government led by Prime Minister Antonis Samaras.

The Premier is leading an administration that includes partners the Democratic Left and PASOK, now led by former finance minister Evangelos Venizelos, who had imposed 74 percent losses on investors to write down the country’s debt.

That nearly wiped out Greek and Cypriot banks and small bondholders in the Diaspora, some of whom put their savings into helping their homeland only to lose most of their money.

 

 

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  • Guest

    Which one of the diaspora was foolish enough to buy Greek bonds.

  • Alithia

    Mehh….the better trick is to claim the diaspora are Greek Citizens by birth and need to pay taxes. AKA blood taxes. Give them another xix months and it’s coming. 

    …socialism is great until you run out of fools to borrow and steal from…..

  • The maverik

    The Greek government and their parasites still stealing money from us…They did that for more than 30 years and they still doing it…Greeks must wake-up before all their posesions are wiped out by corrupt politicians…

  • Alex

    Middle class and poor are much bigger thieves.  Too many communists and anarchists demanding handouts from government.

  • Alex

    “socialism is great until you run out of fools to borrow and steal from”

    That sums it up nicely.

    The further left one goes – the more “generous” they are with other people’s money.

  • Alex

     The reason why we have constant strikes and riots is precisely because too many Greeks have become dependent on the government. The one’s that aren’t dependent on the government have no reason to strike.

  • http://profile.yahoo.com/OYG7TRHWU2AIDSI4M3B2PE2BHA Paul Johnston PhD

    Who care to hear from Mr. Simitis when some in his own PASOK party are accusing him of being behind the fraudulent entry into the EU and setting the disasterous course for Greece’s bailouts.
    Some people just don’t know when to disappear and walk away. He has no honour left. What the Greek people are asking no is why has not one Politican been punished yet? And why has Akis Tzahadsopolous not been tried for his Crimes against the State?

  • MSMlies

    The Premier is leading an administration that includes partners the Democratic Left and PASOK, now led by former finance minister Evangelos Venizelos, who had imposed 74 percent losses on investors to write down the country’s debt.That nearly wiped out Greek and Cypriot banks and small bondholders in the Diaspora, some of whom put their savings into helping their homeland only to lose most of their money. 
    I’m sure that FAT CORRUPT PIG Evangelos Venizelos had all of his money safely tucked away in British, American, German, Swiss, etc banks when he helped impose 74% losses on Greek investors.

  • http://www.bournias.net/ P. Bournias

    Simitis should know after all he is one of the culprits that submerged Greece into debt.
    Don’t you love it when criminals are allowed to give their opinions!

  • Alex Prime Minister of Greece

    Alexs family