“You’ll get another loan only if you provide guarantees!”

According to the revealing Sunday report of Proto Thema, new aid for 2013-2017 by the Troika or the Permanent Mechanism could even reach 100mil euros. 

Bloomberg, citing EU sources, refers to 50 to 60bil euros for the next two years, since our country is unable to borrow from the markets.

Our partners-creditors agree on the need for the further strengthening of Greece, but disagree as to how, when and in particular who will be asked to pay the “new bill"!

And it is quite impressive that even at the last moment they are unable to follow a common course of action, given the alert status to which the “Greek problem” has driven the Eurozone.

So, they appear divided with a group of German analysts and finance agents – mainly – expressing the viewpoint that even a possible Greek exit from the Eurozone would be the “preferable solution” as opposed to new funding; that is, a new disbursement of funds from Europe’s “healthy core” to the weakest member state of the Union.

Equally impressive is the Bloomberg article about possible mortgaging of real estate and other assets of the Greek state as collateral for the extension of loans in conjunction with a further rate cut.

More specifically, those who expressed an opinion on the Greek question in recent days apparently remain true to the tactics and policy they have supported from the beginning of the crisis.
 

“The lesser of two evils”…   

The head of the German Finance Institute Ifo, Hans-Werner Sinn, said that a possible Greek exit would be “the lesser of two evils”, stressing that if our country did go back to the drachma, it would be able to devalue its currency and become more competitive. Otherwise, remaining in the Eurozone could mean a sort of internal devaluation and further reduction in wages and prices, and would possibly lead the country “to the brink of civil war”. He also warned about the domino effect in the likelihood of Greece leaving the Eurozone.

German Finance minister Rainer Bruederle expressed a different view by sounding the alarm on the possibility of a Greek exit, saying that it would weaken Europe. He was seconded by the chief analyst of Commerzbank, who spoke of a series of banking crises if Greece were to return to the drachma.

IMF head Dominique Strauss-Kahn appeared steadfast in his position that Greece will make it. He said that the international community cannot expect a success within two years and that we must all wait to finish with the current measure package and then proceed to conclusions about new measures.

According to Bloomberg, these measures have already been discussed and decided upon – even in the last crucial Luxembourg meeting – and will be issued in the form of additional funds toward our country, combined with a reduction in interest rates and a debt extension.
 

An additional 50-6 million euros under tough conditions

According to the agency’s story, additional funding of 50-60bil was decided for 2012-13 under new strict conditions relating to the granting of compensation on Greece’s part - in other words, mortgaging! So what have we got for sale?

Based on relevant articles and with ​​ Finnish Finance minister Jyrki Katainen as the instigator of the idea, our country could put up as collateral for the new funds capital that could be earned from the privatization program that has already been announced! And the minister reportedly said that it’s the only way to curb the fierce opposition of Germany, Finland and several other Europeancountries to the new scenario of successive bailouts for Greece, and possibly for Portugal or Ireland in the days to follow! But what Katainen failed to mention is that this will – possibly – overcome the reactions of hardliners from the True Finns party, the Eurosceptics that is, who are the regulators of the political life of his country and the de facto “partners” in the new government…

Objectors can be found in Britain as well, even at the highest level if one takes into account the recent statement by British Finance minister, George Osborne, who bluntly stated on BBC: “We do not want to take part in a rescue of Greece, a second rescue of Greece!”

Accordingly, German media polls have shown the majority of German citizens opposing new aid toward Greece.

In short, everyone might seem to disprove the Spiegel scenarios about the Greek exit, but the problem is real, and as everything indicates any solution will be complex and far from “favorable” to Greek interests!