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Showing posts with label bailout. Show all posts
Showing posts with label bailout. Show all posts

Thursday, October 13, 2011

Slovak rivals reach bailout deal

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12 October 2011 Last updated at 16:21 GMT Slovak Social Democrat leader Robert Fico talks to journalists in Bratislava, 12 October Opposition leader Robert Fico has triggered new elections Political rivals in Slovakia have agreed to support a crucial bill ratifying changes to the EU bailout fund in exchange for early elections.

The bill was defeated in a first vote on Tuesday, after a coalition party and the main opposition abstained.

A second vote is expected by the end of this week after Prime Minister Iveta Radicova's coalition struck the deal with the opposition Social Democrats.

Slovakia is the last eurozone state to vote on ratifying the fund's expansion.

It is proposed to expand the effective lending capacity of the European Financial Stability Facility (EFSF) to 440bn euros ($600bn; £383bn).

The fund would also be empowered to buy eurozone government debt and offer credit lines to member states and to banks.

Top EU officials urged the country on Wednesday to ratify the bill swiftly.

"We call upon all parties in the Slovak parliament to rise above the positioning of short-term politics and seize the next occasion to ensure a swift adoption of the new agreement," European Council President Herman Van Rompuy and European Commission President Jose Manuel Barroso said in a joint statement.

March elections

Ms Radicova failed to pass the bill on Tuesday when a junior partner in her coalition, Richard Sulik's free-market Freedom and Solidarity party, refused to back it.

Continue reading the main story
The feet of many Europeans stamp impatiently but these changes - however desirable - cannot be just nodded through”

End Quote image of Gavin Hewitt Gavin Hewitt BBC Europe editor Freedom and Solidarity asked why Slovakia's taxpayers should be asked to help cover the debts of richer countries.

Many Slovaks feel their country - the second poorest in the eurozone - should not have to bail out countries like Greece, correspondents say.

However, the EFSF looks almost certain to pass in the second vote after four parties reached agreement on Wednesday.

"We have reached an agreement on securing the adoption of the most important document of this period - the EU bailout fund," said Robert Fico, head of the Social Democrats.

Slovak Prime Minister Iveta Radicova (left) with former coalition partner Richard Sulik in Bratislava, 10 October Prime Minister Radicova lost the support of former coalition partner Richard Sulik

Earlier, explaining his abstention in the first vote, which helped bring down the government, he said: "We're saying 'no' to a rightist government, but we're saying 'yes' to the rescue fund."

In return for his support, Ms Radicova's coalition agreed to hold snap elections on 10 March, one of her ministers, Mikulas Dzurinda, confirmed.

"We decided that as the first point of [Thursday's] parliamentary session, we will work on a proposal to shorten the voting period, with the goal of organising an election on 10 March," he said.

"Immediately after, tomorrow or Friday, we will debate proposals related to the EFSF."

Correspondents say Mr Fico, a former prime minister, is positioned to do well at the elections because of the unpopularity of the outgoing government's austerity measures.



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Wednesday, October 5, 2011

Greece pushes for bailout tranche

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30 September 2011 Last updated at 16:00 GMT Greek Prime Minister George Papandreou (left) meets French President Nicolas Sarkozy in Paris, 30 September Details of the talks between the two leaders in Paris were not available immediately The Greek prime minister has been having a day of talks with fellow EU leaders on a new bailout tranche Greece needs to avoid bankruptcy in October.

George Papandreou met French President Nicolas Sarkozy in Paris after talks with European Council chief Herman Van Rompuy and others in Warsaw.

International inspectors are in Athens to decide whether Greece should receive the 8bn euros (£6.9bn; $10.9bn).

Protesters forced the rescheduling of a meeting on Friday morning.

Anger continues over austerity measures including a new property tax, and demonstrators have publicly burnt copies of emergency tax notices outside a tax office in the country's second city, Thessaloniki.

Meanwhile, the expansion of a general bailout fund for the eurozone looks on track for approval.

Jean-Claude Juncker, head of the eurozone group of finance ministers (Eurogroup), predicted all of the euro states would have endorsed the expansion by mid-October.

'Charm offensive'

Mr Juncker was speaking to Reuters news agency after the lower house of Germany's parliament backed the European Financial Stability Facility (EFSF) on Thursday in a vote which tested Chancellor Angela Merkel's credibility.

Greeks burn tax notices outside a tax office in Thessaloniki, 30 September Greeks burned tax notices outside a tax office in Thessaloniki on Friday

Austrian MPs backed the expansion on Friday, with only the parliaments of Malta, the Netherlands and Slovakia left to cast their votes.

In June, the European Council proposed expanding the size of the EFSF rescue fund from 240bn euros (£209bn; $326bn) to 440bn, and giving it new powers, such as allowing it to buy government bonds.

Analysts have suggested the fund actually needs to expand to 1-2 trillion euros in order to win market confidence, but EU officials have played down such reports.

The BBC's Chris Morris in Athens says Mr Papandreou is on a charm offensive, trying to convince his European colleagues that Greece can meet the demands imposed upon it by a tough austerity programme.

Continue reading the main story
Outsiders want them now to integrate faster, to resolve the crisis... But the faster they move, the less legitimate that union may be in the eyes of voters, especially German ones.”

End Quote image of Stephanie Flanders Stephanie Flanders Economics editor, BBC News The unpopular reforms are vital to guarantee the international loans offered by a troika of the European Commission, the European Central Bank (ECB) and the International Monetary Fund (IMF).

Since eurozone leaders agreed on a second rescue package for Greece this summer, Athens has fallen behind on its debt reduction targets, raising fears of a Greek default.

Many Greeks believe that austerity measures are pushing the country's crippled economy deeper into recession and strangling any chance of growth.

President Sarkozy has said he will unveil a Franco-German strategy shortly, without giving details.

Germany and France together represent about half of the 17-nation eurozone's economic output.

German Foreign Minister Guido Westerwelle said that with Thursday's vote in the German parliament: "The signal to our European partners is that you can rely on Germany."

Talks disrupted

Our correspondent says some analysts believe the whole strategy for Greece, with a possible second bailout, needs urgent readjustment.

That is partly because contagion from Greece to other eurozone countries is no longer a threat but a dangerous reality, he adds.

The troika's team of inspectors found its second day of talks in Athens disrupted on Friday after protesting civil servants occupied the transport ministry, where they had been due to meet the minister, Yannis Ragoussis.

"Take the austerity package and get out of here!" the civil servants shouted as they stood in front of the shuttered entrance, according to a Reuters news agency report.

The meeting with the minister was rescheduled as a result.

Angry protesters against the government's austerity measures have been causing disruption in the Greek capital for months.



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Peliculas Online

Thursday, September 29, 2011

Japan may help Greek debt bailout

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27 September 2011 Last updated at 03:53 GMT Consumer walking in front of a stock board in Tokyo Japanese shares have been hit hard by the debt crisis in European economies Japan has said that it would consider being part of a global plan to help bailout Greece.

Finance Minister Jun Azumi said eurozone countries needed to come up with a rational plan to ease global concerns.

Mr Azumi's comments come a day after the Nikkei 225 index fell to a two-and-a-half year low amid fears that the debt crisis may slow global growth.

However, on Tuesday, the Nikkei rose, giving further proof of volatility.

"If there is a scheme that is based on a firm process, involves a reasonable amount of money and could provide the world and markets with a sense of security regarding a Greek bailout, I would not rule out the possibility of Japan sharing some of the burden," Mr Azumi was quoted as saying by the Reuters news agency.

The finance ministry confirmed those comments to the BBC.

Multiple factors Continue reading the main story
Japanese banks and insurance companies are big investors in stock markets and if the Nikkei continues to plunge, it will send the domestic financial system in turmoil”

End Quote Masaaki Kanno JP Morgan Analysts said Japan's willingness to consider sharing some of Greece's bailout burden stemmed from the fact that it wanted to ensure stability in the region.

Europe is a key market for Japanese exports and there are concerns that if a solution to the debt crisis is not found soon, it may hurt growth and dent demand for Japanese goods.

"If the financial turmoil spread from Europe to the rest of the world, Japan will not be immune," Masaaki Kanno of JP Morgan told the BBC.

Growing uncertainty in Europe may also see investors flock to traditional safe havens such as the yen.

That may result in the Japanese currency strengthening even further against the US dollar and the euro.

A strong currency not only makes Japanese goods more expensive, but also hurts the profits of companies when they repatriate their foreign earnings back home.

At the same time, the crisis has resulted in sharp falls at the Tokyo Stock Exchange.

Mr Kanno added that if the falls continued, it could be detrimental for the Japan's economy.

"Japanese banks and insurance companies are big investors in stock markets and if the Nikkei continues to plunge, it will send the domestic financial system in turmoil."

Eurozone governments are in talks to discuss how best to stop the crisis spreading from Greece to the rest of the continent.



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Peliculas Online

Friday, September 23, 2011

Greece bailout talks 'progress'

  There were protests in Athens at the weekend calling for a boycott of banks Talks to avert a financial meltdown in Greece have made "good progress", the European Commission has announced.
Debt inspectors from the EC, European Central Bank, and International Monetary Fund will return to Athens next week for further negotiations.
This so-called troika of inspectors suspended a review of Greece's austerity programme, which was needed to approve further bailout money.
The troika and Greek finance ministers held a teleconference late on Tuesday.
After the teleconference, the EC said in a statement that a full troika mission "is now expected to come back to Athens early next week to resume the review, including policy discussions.
"Good progress was made" at Tuesday's talks, the statement said, "and technical discussions will continue in Athens over the coming days."
The suspension of the troika's full review of Greece's progress in meeting its budget reduction measures had unsettled the global financial markets for days.
The suspicion was that Greece was not making progress, jeopardising the release of an urgently-needed 8bn (£6.9bn)euros tranche of aid.
Greece has been under pressure to plug a budget hole of more than 2bn euros to meet the terms of a 110bn-euro bailout from the troika members.
The debt-laden country needs the rescue funds before it runs out of money to pay such things as public wages and pensions.