“A 35% haircut is coming”

The PM is giving everything he’s got to maintain consistency in the government while the cabinet is showing signs of disintegration. He will proceed with information as far as he can in his appointments with ministers today, before and after the cabinet meeting with Pangalos and Chrysohoidis. Yesterday, he met with Ragousis, Skandalidis, Loverdos, Kastanidis and Diamantopoulou. He said, “we now have a solution to our debt” and asked them to support the government and moreover, to speak to MPs and to stop the debate on elections. Of course, he accepted the observation of some that PASOK should be ready for all eventualities. 

According to information, Papandreou expects that the Eurogroup on October 21 or the summit on 23 will decide on: 

- a 35% haircut (it should be noted that Greek bonds have been sold at this rate on their initial price)

- maintaining balance in the banking system

 

The solution can be summarized in the phrase “the Troika will deal with the debt and the Greek government with the deficit and changes.” That is, lenders will give us the interest on old debts that will remain after the haircut and we will have to make cuts until we have a surplus to pay for the capital too. 

 

Trick…

But in order for the Union to make this decision, Athens should have voted earlier on the multi-bill on redundancy, the new payroll, cutting tax exemptions, etc. That is why Venizelos sought and obtained the consent of ND to accelerate the processes of a second reading. Half of the consent, yes to the process - no to the bills, allows the government to say to foreigners that there is a front for change inside the country, and ND to brush off the risk of direct elections where it will be asked to manage the painful measures of the next three years. The government is convinced that Antonis Samaras is talking about elections but does not want them, and they will try to exploit this distance between public discourse and strategy by the leader of the opposition.