GREECE: Finance Minister Yannis Stournaras says a debt cut would be the "biggest gift" for future generations of Greeks if it is achieved / Meanwhile strikes are held at the country's ports

Record ID: 341121

  • Title: GREECE: Finance Minister Yannis Stournaras says a debt cut would be the "biggest gift" for future generations of Greeks if it is achieved / Meanwhile strikes are held at the country's ports
  • Date: 16th April 2013
  • Summary: ATHENS, GREECE (APRIL 16, 2013) (REUTERS) GREEK FINANCE MINISTER, YANNIS STOURNARAS, ARRIVING AT NEWS CONFERENCE STOURNARAS SEATED (SOUNDBITE) (Greek) GREEK FINANCE MINISTER, YANNIS STOURNARAS, SAYING: "With the smooth conclusion of the agreement we can deliver a message of optimism but not to relax, until Greece can re-enter the markets. The road is rocky." STOURNARAS L
  • Embargoed: 1st May 2013 13:00
  • Keywords:
  • Location: Greece
  • Country: Greece
  • Topics: Economy,Employment,Politics
  • Reuters ID: LVACYBCVXGPZJR2I7VD7LVAFX4J9
  • Story Text: Greek Finance Minister Yannis Stournaras said on Tuesday (April 16) that it would be a "national goal" for him to achieve a primary budget surplus that would allow for more debt relief from lenders.
    On Monday (April 15) the Greek government and Troika officials of the European Union (EU) and International Monetary Fund (IMF) reached a successful agreement on the latest package of reforms that the country must implement to continue receiving financial aid.
    Greece has a long list of reforms it is implementing, and has already implemented, to make its economy viable since it was kicked out of the markets in 2009 after under-reporting the size of its deficit, sparking a debt crisis. But Stournaras warned that although things were looking good for Greece it was not yet out of the woods.
    "With the smooth conclusion of the agreement we can deliver a message of optimism but not to relax, until Greece can re-enter the markets. The road is rocky," Stournaras told journalists.
    Greece received a clean bill of health from its international creditors, securing more rescue aid in exchange for harsh austerity measures that have thrown the Greek economy into its deepest peace-time recession and strained the cohesion of its fragile coalition. Athens plans to ask creditors for a large debt cut. Stournaras has said he would ask for more debt relief if Athens keeps meeting its bailout targets and achieves a primary budget surplus.
    "I believe, for me, it is a national goal at all costs, because it will be the biggest gift for the next generations to be able to reduce the debt and to reduce the interest rates that Greeks will pay for the next years," he said.
    Athens aims to achieve a primary budget surplus (before debt payments) in 2013, fulfilling one year earlier than planned a key condition to obtain further debt relief from its creditors. The troika has already granted Greece debt relief of about 40 billion euros late last year, through lower interest rates and longer maturities on its rescue loans. In its review on Monday, the troika confirmed it was prepared to consider "further initiatives and assistance" to help bring the debt down more rapidly once Greece has achieved a primary surplus.
    The troika's next review is expected to take place in June. By then, Greece must have carried out its first big privatisations and set out how it will cover a budget shortfall of 2 to 4 billion euros for the years 2015 and 2016.
    Greece's coalition government has ruled out taking any new austerity measures and hopes that stronger-than-expected recovery will create enough revenue to make up for the shortfall.
    Meanwhile Greek sailors and ship workers at the country's ports went on strike on Tuesday over the reforms the government has been implementing.
    At the country's main port of Piraeus, where the heaviest commercial and tourist traffic takes place, the workers kept ships to the islands tied up and held a protest rally. They were joined by workers from other local unions.
    Protester Margarita Melisi addressed the crowd.
    "These policies do not benefit us, they benefit and will continue to benefit big shipowners, big traders, big businessmen, and big bankers. They require resistance and abolishment. They must be met with a battle by the working class," she said..
    Seamen are opposed to several of the bailout reforms being implemented by the government, including increased taxes, the privatization of ports, the reduction of pensions, the creation of more flexible labour agreements, as well as changes to collective wage agreements which they say are reducing their salaries by 35 percent when they are already owed overdue pay. The workers said unemployment has also hit their sector.
    Sailors and ships crews unions called a strike from 03:00 gmt for 24 hours.
    As it is very early in the tourist season, there was no major impact at the port, which operates ferry trips for tourists to the islands. But there are concerns that if a strike is repeated when the season kicks off fully next month, it could be detrimental to tourism.
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