Fund Proposed to Hold 50 bln Euros of Greek Assets Is Controlled by German Fin Min Schauble



Photo by Jolanda Flubacher
Photo by Jolanda Flubacher

German Finance Minister Wolfgang Schaeuble proposed on Saturday that 50 billion euros of Greek public assets be transferred to an external fund and privatized over time. The fund he used as a suggestion, the Institution for Growth in Greece, is owned by the German bank KfW, whose current Chairman of the Board of Supervisory Directors is Schaeuble himself.

KfW is a German government-owned promotional bank. German Vice Chancellor Sigmar Gabriel is the Deputy Chairman of the Board of Supervisory Directors.

KfW had agreed with the Greek government on the creation of three different sub-funds under the Institution for Growth in Greece.

The first of three planned IfG sub-funds was founded on 7 May 2014 in Luxembourg. The Hellenic Republic and KfW — on behalf of the German Federal Government — will each contribute EUR 100 million in funding debt to this sub-fund. These funds will be lent to small and medium-sized enterprises in Greece in the form of loans from Greek on-lending banks. The IfG will thus make it easier for Greek SMEs to access investment loans and working capital, thereby contributing towards the recovery of the Greek economy,” a press release from May 20, 2014 reads.

Negotiations for establishing the IfG had started in 2012 with the Greek government officially endorsing it in February 2013.

“In February 2013, the Greek Minister of Development and Competitiveness Kostis Hatzidakis approved the proposed concept for an IfG umbrella fund with three different sub-funds to be founded according to their specific promotional purpose: one sub-fund that will provide borrowed funds to Greek SMEs, one sub-fund that will provide equity capital to Greek SMEs and one sub-fund for financing infrastructure projects,” the same release states.

Schaeuble had suggested on Saturday that the 50 billion euros be transferred “to an external fund like the Institution for Growth to be privatized over time and decrease debt”.

Reports from Sunday’s negotiations have alleged that the Greek government has adamantly rejected this option.


8 COMMENTS

  1. [A big Greek tragedy is happening?]

    Greek government should have a preparation; printing own currency, Drachma, might be inevitable. If on 17th July Greece is in default on the loan to European Central Bank, Greece could be punished. Now many Eurozone members want to expel Greece. It might be a tragedy, but also could be a turning point. Many countries around the world could help Greece.

    In 1965, Singapore was forced to be independent from Malaysia. The size of Malaysia and Singapore is 400:1. The 3 million overseas Chinese is surrounded by 300 million Malay Muslims (Malaysia + Indonesia). Their ancestors came from south China as coolies (苦力), with just a dream – “one day China will be very great”.
    Their culture and Malay’s is very different. At that time Singaporean Premier
    Lee Kuan Yew dropped tears.

    Then Singapore established own currency, it was 1:1 to Malaysia currency. Now Singapore currency and Malaysia currency is 1:2.5. Singapore currency is bigger; and often arises against Malaysia
    currency.

  2. Schaeuble made a very smart move. He’s light years ahead of the two clowns Tsipras, and Varoufakis, in intelligence. If Greece defaults again, he has enough Greek assets to at least cover this new loan. No one can blame him there.

    The EU also wants Greek laws changed BEFORE it gets any money. Another smart move. I can only hope their are contingencies for the EU to monitor how the loan money is spent.

    This Greek government can NOT be trusted.

  3. Tsipras SOLD Greece,.
    In two World Wars the Germans could not take Greece, now for a handful of Gold, Greece has been Sold!

  4. “If Greece defaults again, he has enough Greek assets to at least cover this new loan:

    No it wont because the assess will still be in Greece. If Greece falls apart those asests will only further reduced in value and may very well be nationalized again if it comes to a default.. If Greece defaults again it will be for hundreds of billions of dollars.

    Schaeuble moving the bar at the very last minute was a miscalculated emotional over reaction to Tsipiras.antics and pandering to German populists (just like Tsipiras has been doing) He though by making the outrageous demand that he would get his grexit.

    The problem populists fail to understand is that mathematics doesn’t care about their sundry political agendas and sadistic joys in seeing other people suffer. All it cares about is if the numbers add up. If the EU doesn’t provide enough debt relief this time, lots and lots of hardliner politicians across Europe that nailed Greece to the wall, are going to lose their jobs for not getting the job done..

  5. Still supporting Comrade Tsipiras who claims to have “won” negotiations. Or are you prepared to admit you may have made a mistake?

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