ATHENS | By Nick Malkoutzis | It seems slightly surreal to be discussing whether shops in Greece should open on Sunday when household disposable income has dropped by around 30 percent since 2010 and we have seen the emergence of consumers of need rather than choice. Nevertheless, this is the debate that has been prompted by a new law allowing stores in 10 areas of Greece to open every Sunday.
MADRID | The Corner | New Commissioner for Economic and Monetary Affairs Jyrki Katainen –Finnish, as his predecessor Olli Rehn- has pledged pure orthodoxy about the European Stability Pact. In an interview with German daily Die Welt, Finland’s former Prime Minister and now one of the most powerful men in the EU ruled out speculations about creative interpretations of the fiscal framework. Mr Katainen is the same who, during the worst moment of the crisis (Aug 2012), asked Greece and Spain for collateral in exchange for aid and reckoned that some peripherals were introducing major structural reforms that were “simply not being recognized in the market.”
ATHENS | Via Macropolis | The Turnover Index in Industry continued heading south for the third successive month dropping by 4.9 percent in May from a revised -10.5 percent in April, according to the Hellenic Statistical Authority (ELSTAT). The May performance indicates the ninth negative reading in the past 17 months, while four months showed a double-digit drop over this period.
ATHENS | By MacroPolis | The Bank of Greece (BoG) released on Friday the findings of a recent workshop in which representatives from the Finance Ministry, the EU, banks, corporates, international experts and consulting firms participated, generating a clear idea of what kind of debt restructuring would be needed for Greek corporates.
ATHENS | Via Macropolis | Unpaid private debt in Greece is estimated to have reached around 160 billion euros, which corresponds to 88 percent of GDP, but was largely ignored until the last few days, when it became a key issue in the discussion between the government and the troika. Apart from the outstanding amount, the dynamic, which clearly shows a steady upward trend, is also a worrying factor.
ATHENS | By Manos Giakoumis via MacroPolis | Having completed capital increases of 8.3 billion euros, which more than covered the capital needs identified by the Bank of Greece (BoG) under the baseline scenario, the single most important risk for Greek banks remains the non-performing loans (NPLs).
ATHENS | By Nick Malkoutzis via MacroPolis | A newspaper article on Sunday, quoting an allegedly secret report by officials at Greece’s General Accounting Office and the Hellenic Statistical Authority (ELSTAT), claims that the country’s deficit figure in 2009 was “over-dramatised” (or “sexed up” if you prefer) by the PASOK government that took over in October of that year.
ATHENS | Via Macropolis | One of the consequences of Greece’s crisis often overlooked is that the vast majority of the country’s unemployed do not receive benefits as they would in many European Union countries. In a report on Monday, Ta Nea newspaper visited this story and found that the numbers are even more alarming than most would imagine.
ATHENS | By MacroPolis | After tapping markets in April for the first time in four years, Greece is considering another bond transaction, which could take place as early as next week, according to reports. The troika delegation is scheduled to return to Athens on July 9 and the country’s goal is for the operation to take place as early as possible to avoid any negative repercussions during the inspection by Greece’s lenders affecting investor interest or the yield.
ATHENS | By Macropolis | After tapping markets in April for the first time in four years, Greece is considering another bond transaction, which could take place as early as next week, according to reports. The first bond issue on April 10 was a 3-billion-euro, 5-year note in a syndicated sale that was heavily oversubscribed. The yield was 4.95 percent.