They are "afraid" of the new loan
Although Mr. Samaras assures that we do not want any more loans, in the background take place consultations on a new bailout from the ESM, the European Support Mechanism
The Eurogroup for next Friday in Milan will judge even the viability of the government.
Leaks and tracer "rounds" began yesterday through the network Bloomberg. Executives of the EU reported that the Eurozone finance ministers are prepared to accept a request from Greece for a new loan, which will be accompanied by an extension of the program, ie a new memorandum.
In Brussels say, that the Greek government has not yet shown its intentions since it did not respond at all. It is obviously that the proposal fell on the table during the discussions in Paris, away from the "prying" eyes of Athens.
Long time now, some press reports say that is possible that Greece will trade the IMF loans with money from the permanent bailout mechanism of ESM. In this way, we will get rid of the Fund and its pressures and Europe will move by its own rhythm and its own policies.
Mr. Samaras in his public statements contradicts those scenarios and even during his meeting with the Portuguese prime minister said that we would not need another loan.
It is no coincidence, the fact that Ireland goes to Eurogroup in Milan with the same request. Right now borrows at 5% from the IMF, while the 10-year bond yield is at 1.652%. Practically, it is better for Ireland to borrow from international markets and with the money it will take, to pay off a large amount of the total 22.5 billion borrowed from the IMF.
However, Greece cannot do the same, as the 10-year bond yield of our country is at 5.6%, well above from the rate of IMF, which is just under 4%. For this reason Brussels urge us to get a loan from the ESM, which will lend us in a lower interest rate.
Recall also that the IMF program in Greece does not expire at the end of 2014, as will occur (based on the official schedule) with the EU and the ECB, but in March 2016!
If, therefore, in the Eurogroup of Friday, EU puts pressure on Gikas Hardouvelis for new loan and new memorandum, then things will be difficult for the coalition.
Not even the rumored upgrade by S & P on the same day, will help with the situation.
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