Hellish week with the Troika and Reichenbach

The arrival of the Troika inspectors, as well as the one of Horst Reichenbach and his Task Force, are what Athens officials expect within the week so the former can check the progress of the implementation programme.

What is a given for now is that everything hangs by a thread as the money in the kitty is getting less and less, enough only until mid-December, while Paris and Berlin are expecting actions before signing for the sixth installment.

All the leaders with whom the new Greek premier spoke during the weekend - that is Junker, Barroso and Van Rompuy - have made it clear that the money will be given to Greece only when the agreement of the 26th-27th October is activated.

As the pressure builds up, Papademos had a meeting on Saturday afternoon with Finance minister Evangelos Venizelos and straight after the confidence vote in the new government, he is expected to meet officials in Brussels, Berlin and Paris.

At the same time, the Greek leadership will need to initiate the new programme, in which the private sector will play an important role according to the decisions of the October Summit and which will endure a haircut of approximately 50% to the country’s overall debt.

Moreover, the coming week is crucial also because of the expected 2012 state budget. The European Commission data shows that Greek economy will undergo a great recession in 2012 as well.

At a time when Greece’s funds have insufficient sums of money, the coming Tuesday’s auction, in which mainly Greek banks will participate, is seen as mouth-to mouth resuscitation.

Nonetheless, the public sector will get a very expensive loan, interest-wise, as rates keep rising - from 4.50% in August to 4.56% in September to 4.61% in October.