Saturday, August 25, 2012

Greece asks for more time to reduce the deficit

Greek Prime Minister Antonis Samaras called on to give his country more time to carry out reforms and cuts in the state budget.

In an interview with the German newspaper Bild Samaras said that Greece needs time to "take a breath".

On Wednesday, Samaras meets with the head of the euro zone, Jean-Claude Juncker, at the end of the week - with the leaders of France and Germany.

It is expected that during the Greek Prime Minister will affect the extension of a 2-year period of Greece to reduce the budget deficit to the amount stipulated agreements with creditors.

EU and IMF should establish whether Greece has fulfilled its earlier promise, before Athens can receive in September next tranche of financial aid in the amount of 31.5 billion euros.

To do this, Antonis Samaras has to demonstrate that his government is committed to a promise to cut government spending by 11.5 billion euros in the next two years.

As reported from Athens BBC correspondent, BBC, Mark Lowen, Antonis Samaras said that Greece has lost time because of this year's elections, and that the process to reduce costs should be slowed down in order to make the lives of ordinary citizens of Greece.

Credit terms
"I want to be clear: we do not require additional funding. We are determined to deliver on their promises," - said in an interview with Samaras Bild. - But we need to spur economic growth in order to reduce our deficit. We just want a little time for a break for a quick revival of the economy and increase government revenue. "
However, a source in the government of Greece, told the BBC BBC that Samaras will not insist on this proposal because of concerns that it could cause a backlash creditors.
The so-called "troika" - the EU, IMF and European Central Bank - must decide on September unlock the next tranche of aid for Greece.
Until now, the leaders of the eurozone countries opposed any attempts to mitigate credit terms.
On Monday, German Finance Minister Guido Westerwelle insisted that Athens must do all have our obligations.
Greece received two packages of financial assistance from the EU and IMF - 130 billion euros in March of this year and 100 billion euros in May 2010, to Athens could pay their debts and to remain in the eurozone.
Under the terms of these loans government program cuts in public spending, pensions and wages in the state economy, which has led to serious economic difficulties for a large part of the population.
 

No comments:

Post a Comment