GREECE: The troika is demanding clarification on a package of austerity measures the government presented to them that would unlock the next tranche of the bailout
Record ID:
702364
GREECE: The troika is demanding clarification on a package of austerity measures the government presented to them that would unlock the next tranche of the bailout
- Title: GREECE: The troika is demanding clarification on a package of austerity measures the government presented to them that would unlock the next tranche of the bailout
- Date: 2nd October 2012
- Summary: ATHENS, GREECE (OCTOBER 1, 2012) (REUTERS) EXTERIOR OF PRIME MINISTER'S OFFICE CAR ARRIVING AT THE PM'S OFFICE IMF INSPECTOR POUL THOMSEN WALKING UP STEPS TO PM's OFFICE MOTORCADE ARRIVING EUROPEAN CENTRAL BANK TROIKA OFFICIAL KLAUS MASUCH AND EUROPEAN COMMISSION TROIKA OFFICIAL MATTHIAS MORSE WALKING UP TO PM's OFFICE CAMERA CREWS EU AND GREEK FLAG THOMSEN, MASUCH AND MORSE LEAVING CARS DRIVE OFF GREEK FINANCE MINISTER YANNIS STOURNARAS AND HIS SPOKESMAN WALKING OUT OF PM's OFFICE TOWARDS CAMERAS (SOUNDBITE) (Greek) GREEK FINANCE MINISTER YANNIS STOURNARAS SAYING: "They have asked for clarification and the discussions continue. They have asked for clarifications and we are providing them." STOURNARAS STEPS INTO CAR CAR DRIVES OFF
- Embargoed: 17th October 2012 13:00
- Keywords:
- Location: Greece
- Country: Greece
- Topics: Politics
- Reuters ID: LVAESHDAKKNMD8Q2QP3OP129LOYM
- Story Text: Greece's international lenders have demanded additional details on Athens' proposals in an austerity package worth nearly 12 billion euros, the finance minister said on Monday (October 1).
Near-bankrupt Greece needs to have the package approved to free up a 31.5 billion euro instalment from a 130 billion euro second bailout. Lenders have made clear no money will be disbursed without credible measures.
Speaking to reporters outside the prime minister's office and after talks with the troika inspectors from the International Monetary Fund (IMF), the European Central Bank (ECB) and the European Union, Yannis Stournaras said meetings would continue.
"They have asked for clarification and the discussions continue. They have asked for clarifications and we are providing them," Stournaras told reporters.
Finance ministry officials said on Wednesday (September 26) the government had finished drafting the plan of cuts worth 11.5 billion euros at a late night meeting on Tuesday (September 25) .
Athens' initial proposals were partially rejected by the troika who left amid disagreements over the scale of public sector reforms. It must also be passed by the Greek parliament.
Earlier in the day Greece submitted its 2013 budget draft to parliament which will make more cuts to public sector pay, pensions and welfare benefits as part of an 11.5 billion euro (14.8 billion U.S. dollars) austerity package of savings spread out over the next two years.
Greece is aiming for a primary surplus before debt service of 1.1 percent of GDP next year, the first positive balance since 2002, after a 1.5 percent deficit in 2012. But the economy will continue to shrink for a sixth year by 3.8 percent.
Economic output will have declined by a quarter since 2008 in a vicious spiral of austerity and recession, with the most heavily indebted euro zone nation repeatedly missing targets set under its EU/IMF bailouts and at risk of being forced out of the single currency area.
Analysts said even the recession scenario set out in the budget appeared optimistic, given Greece's slow reform efforts and a weakening euro zone economy.
The general government deficit, including debt servicing costs, will come to 4.2 percent of GDP in 2013 from 6.6 percent in 2012, while unemployment will rise to 24.7 pct.
The draft gave no target for privatisation revenues. In a sign of the daunting scale of Greece's problems, public debt is projected to reach 179.3 percent of GDP next year despite a major write-down of debt owed to private investors this year.
Austerity-weary Greeks have taken to the streets in often violent protests against the waves of salary and pension cuts that have driven many to the edge.
Union officials on Monday said the country's largest labour unions will hold 24-hour strikes and walkouts this month to protest against the new wave of austerity after the government unveiled its 2013 draft budget. - Copyright Holder: REUTERS
- Copyright Notice: (c) Copyright Thomson Reuters 2012. Open For Restrictions - http://about.reuters.com/fulllegal.asp
- Usage Terms/Restrictions: None