Debtors identify an additional 20 billion euros due to measures

The revelation by the technocrats evaluating the progress of the Greek program that the deep recession and the harsh measures have created a new hole of about 20 billion euros in the public debt, is causing panic in the government and its European partners.

Thus, the reduction target of the Greek debt to 120% of the GDP by 2020 - which is a prerequisite for the adoption of the new program - has been upset at the start, leading to an urgent need for additional financial aid to our country or even higher debt deletion.

The issue of compensation φορ the financial impact caused by the recession and harsh measures (even more than 5% as predicted by the government) will come to the table of the Euroworking Group this Sunday, and by Evangelos Venizelos to Monday’s Eurogroup.

Venizelos will ask for the consideration of alternative options in the case that the 130 billion of the new package is not enough, thus opening a window for additional aid under the new rescue mechanism.

The pressure on the ECB by the supporters of Greece (mainly Italy and Monti) will escalate in that direction, to find a participation formula for the PSI without causing turmoil in the eurosystem.

Some of the suggested solutions regard the disbursement of the profit (about 15 billion) that will be collected by the formal sector from the bond exchange, either through the participation in the PSI or through an exchange this weekend in terms of acquisition of the Greek titles.

In this case, the ECB will make the profit available either directly to Greece or through dividends to the member-states that will fund our country.