Troika Could Leave Greece in Limbo



troika bank dismissalsWith most of its agenda on reforms still lacking agreement with the Greek government, envoys from the country’s international lenders may leave Athens after finance ministers from the Eurozone meet on Nov. 14 and leave unresolved the question of how a looming budget gap of as much as 2.9 billion euros ($3.88 billion) in 2014 will be closed, and whether to release a pending one billion euro ($1.37 billion) installment.

The Eurogroup will discuss Greece’s long-running drama and dilemma with the country in a sixth year of a deep recession and no end in sight despite $325 billion in two bailouts since 2010 from the Troika of the European Union-International Monetary Fund-European Central Bank (EU-IMF-ECB) that have done virtually nothing to reduce a staggering debt, now at around $430 billion.

Senior finance ministry officers said Greece is prepared and made good arguments why the gap is only 500 million euros ($669.74 million) and they reportedly told the Troka that “finances have been better than ever,” despite tax revenues far off the mark.

Finance Minister Yannis Stournaras, the government’s point man on negotiations, was to meet the Troika officials twice on Nov. 12 in accelerated talks and try to persuade them that there will be a 730 million euro ($977.72) primary surplus by the end of the year – not including interest on debt, the cost of state enterprises and cities and towns, some military expenditures and social security costs – which otherwise would show a huge deficit.

If the Troika does not return in November and the negotiations are extended after Christmas, Greece will be forced to act unilaterally, without Troika approval, on a number of critical issues, such as the 2014 budget, the restructure of the domestic defense industries and unifying the real estate tax with a huge permanent increase.

Stournaras was scheduled to with the Troika officials about lifting a ban on foreclosures and the difference of opinion over the size of the budget gap and convince them that Greece is on the road to recovery but needs their continued assistance and financial aid.

The IMF’s man in Athens, Poul Thomsen, has said he will return after the Eurogroup if a compromise on the fiscal gap can be reached by the end of next week. Otherwise, he will return to Washington and come back to Athens in December, although it was reported that an agreement is very unlikely.

Troika officials requested additional data from the government and on Nov. 19 are expected to give their first assessment of Greece’s proposals for covering the budget gap by curbing tax and social security evasion, for an overhaul of state defense firms and for a unified property tax.


12 COMMENTS

  1. Melodrama……………..theater……………….all staged. Who are we kidding? Greece will get the money. TROIKA will sign off on it. Rinse and wash. Rinse and wash……….The Corruption continues……….Thank you EU-IMF-Germany. Keep feeding us (the banksters- civil servants) we love you.

  2. Greece’s debt is 430 billion? That is 200% of its GDP.Oh my Gosh!I don’t envy the next2-3 future Greek generations-they will live in poverty and misery in order to pay this off.

  3. I think this time around Greece will be hard pressed to implement reforms and won’t get money before it happens,and by the way one billion won’t make any difference.Greece’s debt is almost half a triliion euros!Amazing!

  4. “……. to persuade them that there will be a 730 million euro ($977.72) primary surplus by the end of the year – not including interest on debt, the cost of state enterprises and cities and towns, some military expenditures and social security costs – which otherwise would show a huge deficit”
    Is that some kind of sick joke?
    So a Huge Deficit is actually a “Surplus” according to the Greek creative accounting ? Words simply fail me here.

  5. Well said Ted. The bailout will continue down the road past 6- 2014.
    No one will ever admit the euro was a HUGE MISTAKE and they certainly do not want Greece to be the first dominoe to collapse the entire Eurozone currency.
    Let’s hope IMF EU is planning something behind the walls for COMPLETE TAKE OVER OF THE GREEK PARLIAMENT after the holidays and into the New Year. Greece serving the Presidency in a few months is total JOKE!

  6. They have 300 politicians in Parliament when actually 100 or so are needed. Behind these 300 are another 5 or so within them, add mayors of each district all over Greece, and behind these mayors are another 5-10 useless bureaucrats milking the system. There you go……………….

  7. I am sure they will keep Greece on a drip feed but it won’t be enough to make much difference in my opinion, and it will only add to the staggering Greek debt of 430 billion euros. Germany and the ECB won’t do agree on a second Greek debt write off a/ OSI /either, no matter how hard Greece pushes for such solution,because writing off Greek debt held by official EU institutions/governments means direct monetary financing of a sovereign EU country. This is illegal under the founding EU Lisbon treaty and Germany will never agree to such a gross breach/violation of the EU treaties .Germany will push instead for privatization of the Greek state entities and enforcing tax collection /12 billion uncollected taxes only for 2013/, so Greece can start paying off its debts. Either way Greece is SO SCREWED,and it is a totally selfinflicted due to the criminal governing of the Greek cleptocracy, running your country as a Mafia Cartel.

  8. Exactly right. The Greek government is a Mafia Cartel. PASOKleptocrats and others who dried up Greece. The IMF from one respect has failed to do its job. They OUGHT TO GO after the political corruption because as the entire world can see the Greek government certainly will not. You know? Because they are one and the same.

  9. The IMF had failed to do its jobs because it had been hijacked by the special interests of French socialst politicians,who are trying to bail out the euro with IMF money. It was during Lagarde’s term as a French Finance Minister during which the French banks/Societe Generale,Credit Agricole, etc/ accumulated toxic PIIGS junk bonds. Lagarde is clearly abusing her IMF position in attempt to hide her own incompetency and failure as a French Finace Minister by using global funds through the IMF to cover up the busted French Banks.And,yes,it was Obama who appointed her at the IMF as you might have already guessed.Obama drives me absolutely mad,what an poor poor excuse for a US President.As a proud American I am truly embarrassed and ashamed to have this Socialist Failure as a President of my great country.Which is great exactly because it had always been the opposite to the wealth -redistribution socialist state Obama wants to draw us in.

  10. IMF had failed to do its jobs because it was hijacked by the special interest of the French socialist politicians who are trying to bail out the euro using IMF money.It was during Lagarde’s term as a French Finance Minister during which the French banks had recklessly accumulated PIIGS junk state bonds.Lagarde’s is clearly abusing her position as a Chief of the IMF by attempting to hide her incompetency and failure through bailing out the busted French Banks using Global funds ,for which she should be persecuted.Because it is nothing short of a Theft. And yes, she was assigned at the helm of the IMF by Obama, as you might have already guessed.

  11. Why should Greece do what the Troika says?? They are getting the money anyway 320 BILLION so far and more to come. Party on Greece the EU will continue to fund your festivities.

  12. YES!!! Totally agree!!! Can’t stand these politicians and their greed I am SO glad that their disgusting ways have been brought to light and that they were caught out. What were these pigs thinking!?! PASOK are vulgar and so are the idiots who support them. Greece needs international guidence and assistence with this mess they are now facing and they still insist on doing it ther way! Madness!! Just crazy! The sad thing is that the citizens look like lazy, uncaring bad people and I can assure you most of them are not. As Brit who moved to Athens for work the majority agree with Troika and understand the country needs foreign help. But then you get the dumb sloths who just don’t get it. What will it take for this government to move forwards!! What? Shame really because the potential amongst the young professionals here is great yet not being utilized efficiently because it’s not being allowed too. *sigh*

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