GREECE: Greeks are resigned to new measures which imposes a permanent team of foreign inspectors to monitor the country's finances but pessimistic the multi-billion bailout will help the country in the long term.

Record ID: 644135

  • Title: GREECE: Greeks are resigned to new measures which imposes a permanent team of foreign inspectors to monitor the country's finances but pessimistic the multi-billion bailout will help the country in the long term.
  • Date: 23rd February 2012
  • Summary: VARIOUS OF PEOPLE WALKING IN THE RAIN
  • Embargoed: 9th March 2012 12:00
  • Keywords:
  • Location: Greece, Greece
  • Country: Greece
  • Topics: Economy,Politics,People
  • Reuters ID: LVA4LL04CFXQ0RHZ82YXI89QLQOY
  • Story Text: Greeks said on Wednesday (February 22) they were resigned to the tough measures of the multi-billion bailout package agreed with the European lenders to keep the country from bankruptcy but remained sceptical the money would help them in the long term.
    Euro zone finance ministers sealed a 130-billion-euro (172 billion U.S. dollars) bailout for Greece in the early hours on Tuesday (February 21) to avert a chaotic default in March after persuading private bondholders to take greater losses, Athens to commit to deep cuts and the scrutiny of a permanent team of foreign inspectors who would monitor the country's finances.
    At Athens central Syntagma Square, people had mixed feelings about the measures, particularly the monitoring which was seen by some Greeks as a humiliating.
    "Well actually two years ago I wished for a German overseer but now I'm not so sure. It's probably a good thing given the circumstances but in the long run, or in six months, or in a year, if we have a seven percent recession and the interest rate is running, the government's money is definitely going to run out," said Nassos Koumantos, 39-year-old architect.
    "It seems that we are unable to manage our finances and I guess that's why. But it's not good because it lessens our rights and limits us," said pensioner Dionisis.
    In a sign of the mistrust between Athens and foreign lenders after years of Greek backsliding on promises, euro zone finance ministers demanded an "enhanced and permanent presence" of EU inspectors to ensure it sticks to punishing terms of the rescue package.
    The idea of foreign inspectors - dubbed "commandos" in the Greek media - based in Athens and rifling through the country's accounts has angered ordinary Greeks, whose sense of national pride has already been battered by the threat of bankruptcy.
    However, one Greek-Canadian investor Michael Patellis said the conditions were not enough and warned the EU would lose their money in a "bottomless pit".
    "The strings attached are insufficient. There should be more restrictions and there should be more... And the EU should be more careful with the money they give, who they give it to and how it's been handled from here forward. Because they are going to run into the same problems as before. They give the money into a bottomless pit. This is the Greek society and the Greek government and Greek politics," said, 64-year-old Patellis.
    The debt crisis has seen relations between Athens and Berlin descend into bitter acrimony. Greek media and street protesters have often played on memories of Greece's World War Two occupation by Nazi Germany.
    EU officials say the details of the new surveillance system will be hashed out this week.
    The country has committed to 3.3 billion euros in wage, pension and job cuts, but EU leaders have lost patience with Greece's failure to stick to earlier promises of belt-tightening.
    Under the terms of the bailout, Greece's second since 2010, Athens will also have to deposit funds to service its debt in a special account to guarantee repayments.
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