Financial Crisis in Greece

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  • fyrOM
    Banned
    • Feb 2010
    • 2180

    It first was PIGS. Now its starting to look like BPIGS and maybe BHugePIGS.hahaha
    That will teach the EU sleeping with PIGS could loose your bacon.


    Bulgaria fiddling with Debt numbers, Greek style



    Thursday, 10 June 2010

    Greece was the founder member of the 'Erode the euro' club. Ireland, Portugal, Spain and Italy have also been in from the start, although everyone pretended not to notice at the time.

    There have since been mutterings about Belgium and even France. Last week there were jitters about Hungary. And now it's Bulgaria's turn.

    Hang on, you say. Hungary and Bulgaria aren't even in the euro. Why should our continental cousins worry about them?

    Well, there are plenty of reasons for the eurozone countries to worry about their neighbours to the east. Here's what's spooking them, and what it means for the euro...

    Firstly, news that the EU's accountants have turned up on a country's doorstep can get the rumour mill working overtime. Ever since Greece admitted that Goldman Sachs had helped it fiddle its deficit numbers, everyone's on the alert for a repeat.

    "The timing of Rehn's statement was unfortunate given the last week's focus on the veracity of historical budget data in Hungary, and comparisons made to Greece's chequered track record on the data quality front", says Timothy Ash at RBS. "The EC is eager to expose any potential skeletons in the fiscal cupboard, and Bulgaria seems to be next in line in this 'cleansing' process".

    In other words, senior eurocrats want to make sure Bulgaria isn't cooking its books. And that's because of the second reason. There's a big debt problem in Bulgaria.

    The irony is that government borrowing is fine. The annual budget deficit – how much the government is spending over and above what it receives in taxes – is forecast to be 'only' 3% this year. And the national debt – the government's total debt pile – is likely to be just 17% of GDP by the end of this year. That compares very favourably with the EU average of 80%, and well over 100% for Greece. So Bulgaria should be able to pay its interest bills for now.

    The cause for concern lies elsewhere. Bulgaria has a total external debt/GDP ratio of around 108%. That means that as a group, Bulgarian citizens owe more than they produce each year.

    And because Bulgaria's currency, the lev, is pegged to the euro, this creates a rather different problem to Hungary. As John Stepek explained on Monday, many European banks made euro loans to Hungarian homeowners. When the forint dives against the euro, payments shoot up and some borrowers can't service their debts.

    In contrast, lenders to Bulgaria – including Hungarian banks, incidentally – have to cope with the same issue that eurozone countries such as Greece, Ireland and Spain are suffering.

    Because Bulgaria is keeping the lev pegged to the euro, the country hasn't been able to devalue its way out of trouble. That means its exports simply haven't been able to compete on the world stage.

    And that's "caused a brutal and extended recession", says Ash. Real GDP shrank by 5% in 2009, and fell a further 4% in the first quarter of 2010. Unemployment has doubled in the past year to just below 10%. The economy is likely to take a long time to turn around.

    Even worse, Bulgaria's growth over the past four to five years has largely been driven by a credit-based property boom. That boom is over, leaving Bulgarians with lots of debts backed by properties which aren't worth what they paid for them. Throw in a weak economy and high unemployment, and the reality is that lots of those loans simply can't and won't be repaid.

    Bulgaria's finance minister says he's not worried about the EU audit. And he has no reason to be. But European banks who've lent to the country's citizens should be worrying about the risks that all that external debt poses. It's yet another potential danger to their balance sheets. It's likely to require more asset write-downs. And they've plenty of dodgy debt in their own countries to sort out without having to fret about the likes of Bulgaria.

    Add it all up, and it's yet another nail in the euro's coffin. Because if European banks suffer another crisis, their governments will be under pressure to bail them out again. That means even heavier public sector debts, weaker economies and possibly even money printing, which in turn means a weaker currency.

    Comment

    • johnMKD
      Member
      • Apr 2010
      • 364

      Crisis forcing migrants home [http://www.ekathimerini.com/4dcgi/_w...6/2010_117827]

      Article:
      Thousands of immigrants who have lived in Greece for years, chiefly Albanians, are moving back to their homelands as the impact of the financial crisis bites into their incomes, Kathimerini has learned.

      Travel agencies across the capital are reporting a significant increase among migrants buying coach tickets to their native countries for themselves and their families. “My office is reserving tickets for about 10 families every month,” said Petros Matzaris, who runs an agency in central Athens that organizes coach trips to Albania. He said the exodus began about two years ago and has peaked in recent months. “We are expecting another big wave of departures now that schools are closing for summer,” Matzaris said. He said many families are leaving earlier than usual for their summer vacations as work has dried up. Many have no intention of returning while some will send back their wives and children so the youngsters can finish school, he added.

      Nikita Tsiprian, who works in another travel agency on central Acharnon Street, reported the same trend. “Some construction workers tell me that they have hardly had any work at all for the past six months,” he said.

      Most of the migrants leaving Greece are Albanians, with smaller numbers from Bulgaria and the countries of the former Soviet bloc.

      I guess the crisis is getting worse for Greece, although I must say that that the fact that Albanians are heading back home sounds somehow relieving.
      Macedonian and proud!

      Comment

      • Makedonetz
        Senior Member
        • Apr 2010
        • 1080

        Albanians return to your motherland of Greece and reclaim your lands ahaha
        Makedoncite se borat
        za svoite pravdini!

        "The one who works for joining of Macedonia to Bulgaria,Greece or Serbia can consider himself as a good Bulgarian, Greek or Serb, but not a good Macedonian"
        - Goce Delchev

        Comment

        • CA_RO
          Junior Member
          • May 2010
          • 70

          Visa Leglislation in Turkey

          @Onur

          Turkey has kindly dropped their Visas for Romanians as well as an agreement that we would allow Turkey to have easier access into our markets and gladly Turkish citizens and other citizens are welcome to work and get involved in the Romanian market.

          1). http://www.mfa.gov.tr/visa-informati...eigners.en.mfa

          Romanians are grateful for Turkey's decision and Romania will be reciprocating as expected with more transparent and easier access and movement of goods and persons into the Romanian market.

          We have an extensive partial free movement of persons for citizens from the Republic of Moldova (which was a former Soviet Republic until the collapse of the Soviet Union in 1991).

          2). http://www.balkaninsight.com/en/main/news/27038/

          I believe that Romania has agreed with Serbia the same accord as with the Republic of Moldova. This accord is the most recent accord agreed between the two countries.

          The title of the Accord is:

          Small Cross Border Traffic Accord between Romania and Serbia

          Feel free to view this information in its full form

          3). http://www.doingbusiness.ro/en/busin...nia-and-serbia

          Comment

          • fyrOM
            Banned
            • Feb 2010
            • 2180

            Italians , Greeks and Bulgarians in Europe are najmrzlivi



            ROME - Italians are najmrzlivata nation in Europe, and the Greeks and Bulgarians, they have worthy successors , soopštuvaat Italian media, povikuvajḱi the results of the Eurobarometer survey , carried out meǵu 26 000 persons from 27 European countries.
            Italians , Bulgarians and Greeks at least oddeluvaat time for sports or other physical activity. Three percent of the only inhabitants of these southern členki the EU recognized that regular sportuvaat . On the other side of the research is najdoa inhabitants of several northern European countries that people can feel free to vbrojat sporting nations in the category . Seventy -two percent of Finns and Šveǵanite rečisi regularly or regularly deal with sports. Follow Dance with 64 percent , with 58 percent Ircite , Holanǵanite by 56 percent , and Slovenes by 51 percent .

            Comment

            • Risto the Great
              Senior Member
              • Sep 2008
              • 15658

              Ha ha, sounds like I am talking with an old Macedonian half English half Macedonian.
              Risto the Great
              MACEDONIA:ANHEDONIA
              "Holding my breath for the revolution."

              Hey, I wrote a bestseller. Check it out: www.ren-shen.com

              Comment

              • Big Bad Sven
                Senior Member
                • Jan 2009
                • 1528

                Originally posted by Stojacanec View Post
                Your right Prolet. I am from the South of ROMacedonia. If we want to go to Skopje for the day and shop it is 160 km North from us. However Solun is (apparently) 70km South, though I haven't been there.

                Really there is no logic is discussing the shopping habbits of people and trying to give it some political or macro-economic meaning behind it.
                Even though Solun is closer then Skopje, i would rather do my shopping in Skopje. Better to help the local econemy and people that help a bunch of grkomans and tosks who treat us like sh_t. In these tough financial times i would never give money to grease

                Comment

                • julie
                  Senior Member
                  • May 2009
                  • 3869

                  Originally posted by Risto the Great View Post
                  Ha ha, sounds like I am talking with an old Macedonian half English half Macedonian.
                  My old man is an expert at it RTG, he speaks neither language fully anymore, its 50/50, the older he gets
                  "The moral revolution - the revolution of the mind, heart and soul of an enslaved people, is our greatest task."__________________Gotse Delchev

                  Comment

                  • makedonin
                    Senior Member
                    • Sep 2008
                    • 1668

                    Originally posted by Big Bad Sven View Post
                    Even though Solun is closer then Skopje, i would rather do my shopping in Skopje. Better to help the local econemy and people that help a bunch of grkomans and tosks who treat us like sh_t. In these tough financial times i would never give money to grease
                    If the half of the Macedonians were with that attitude, we would be stronger as a nation!

                    But we love to feed those who beat us! The slave mentality!
                    To enquire after the impression behind an idea is the way to remove disputes concerning nature and reality.

                    Comment

                    • fyrOM
                      Banned
                      • Feb 2010
                      • 2180

                      Makedonin it is not only discusting that Macedonians go to Greece for holiday but also Greek shops opened in Macedonia a frequented.

                      Comment

                      • Frank
                        Banned
                        • Mar 2010
                        • 687

                        Greece is still a destination for a Holiday it ranks below other destinations sure, but the fact Macedonians choose to set foot on occupied Macedonian Land and not be angered by that fact is discusting

                        Comment

                        • Coastal
                          Banned
                          • Jun 2010
                          • 104

                          Originally posted by Frank View Post
                          Greece is still a destination for a Holiday it ranks below other destinations sure, but the fact Macedonians choose to set foot on occupied Macedonian Land and not be angered by that fact is discusting
                          Macedonians go to Chalkidiki and Pieria (and less Kavala or Thassos) for Holidays.
                          Not Florina (Lerin) or Edessa (Voden).
                          So i guess there, nothing reminds them anything from their grandpas and grandmas

                          Comment

                          • Makedonetz
                            Senior Member
                            • Apr 2010
                            • 1080

                            Originally posted by Coastal View Post
                            Macedonians go to Chalkidiki and Pieria (and less Kavala or Thassos) for Holidays.
                            Not Florina (Lerin) or Edessa (Voden).
                            So i guess there, nothing reminds them anything from their grandpas and grandmas
                            Yeah be nice if we could but you jackasses deny us entry into the border. We tried that before and you dickheads held us at the border for 3 hours harrasing us calling us Skopianos
                            Makedoncite se borat
                            za svoite pravdini!

                            "The one who works for joining of Macedonia to Bulgaria,Greece or Serbia can consider himself as a good Bulgarian, Greek or Serb, but not a good Macedonian"
                            - Goce Delchev

                            Comment

                            • makedonin
                              Senior Member
                              • Sep 2008
                              • 1668

                              Originally posted by OziMak View Post
                              Makedonin it is not only discusting that Macedonians go to Greece for holiday but also Greek shops opened in Macedonia a frequented.
                              I know OziMak. It is not discusting, it is sad to see them doing think like that, don't even think about why are they in the position they are at the first place.

                              Like moths they are attracted to the diversity and shine.

                              We the Macedonians, specially in the Republic still have the slave mentality.
                              To enquire after the impression behind an idea is the way to remove disputes concerning nature and reality.

                              Comment

                              • Bratot
                                Senior Member
                                • Sep 2008
                                • 2855

                                Case Study of Greek membership in EU

                                Since many deceptive propagators feel certain of how the accepting a name change to enter EU will provide some drastical economical boom for us, trying to produce a common believe that the only obstacle for securing our future is our name, I decided to make this 'case study' of Greece - the EU member blackmailing us.

                                I hope many of you will reconsider their inconvincible arguments after reading the next compilation:



                                1. Unfortunately we are Bankrupt", PM Trikoupis 1893



                                1898 - European Loan to Greece




                                Nothing changed after more than a century huh?




                                2. Greece is in trouble. Swamped by public debt and shunned by international investors, the country has been told by EU leaders to face up to its fiscal crisis on its own. German papers on Friday ask how much fellow Europeans ought to do to help and who is to blame for the mess.

                                For 2009, the Greek budget deficit is expected to rise to 12.7 percent of gross domestic product, more than four times the EU's set limit.

                                3.

                                There's a lot of talk about the declining dollar, but we might better be worrying about the euro. Greece may finally be reaching the end of its ability to borrow at any price, and what the euro zone does about this crisis--the EU is statutorily forbidden to intervene--may determine whether the euro ultimately survives.
                                Greece has already accumulated a mountain of debt that will be difficult if not impossible to pay off. The government has borrowed more than 110 percent of the country's economic output over the years, and if investors lose confidence in the bonds, a meltdown could happen as early as next year.
                                That's when the government borrowers in Athens will be required to refinance €25 billion worth of debt -- that is, repay what they owe using funds borrowed from the financial markets. But if no buyers can be found for its securities, [B]Greece will have no choice but to declare insolvency -- just as Mexico, Ecuador, Russia and Argentina have done in past decades.[/B]This puts Brussels in a predicament. European Union rules preclude the 27-member bloc from lending money to member states to plug holes in their budgets or bridge deficits.
                                And even if there were a way to circumvent this prohibition, the consequences could be disastrous. The lack of concern over budget discipline in countries like Spain, Italy and Ireland would spread like wildfire across the entire continent. The message would be clear: Why save, if others will eventually foot the bill?
                                On the other hand, if Brussels left the Greeks to their own devices, the consequences would also be dire. Confidence in the euro would be shattered, and the union would face a crucial test. What good is a common currency, many would ask, if some of the member states pay their debts while others do not?
                                Furthermore, there is a threat of a domino effect. If one euro member falls, speculators will test the stability of other potential bankruptcy candidates. This could destroy the currency union. Because of this systemic risk, say the economists at the Swiss bank UBS, "we believe that if a country is facing a problem with debt repayment or issuance, it will be supported.

                                The Atlantic covers news, politics, culture, technology, health, and more, through its articles, podcasts, videos, and flagship magazine.



                                4.
                                Good luck to them - and to the new Government elected on October 4 with the task of extracting Greece from almost the worst financial predicament in the European Union, and the worst within the 16-member eurozone currency bloc. The problem is not just a local storm, even if some elements are indisputably Greek. It raises questions of whether the eurozone can hold together if one member stumbles, of whether Germany, above all, would foot the bill for rescue - and of whether financial markets might take an even more doubtful view of Britain’s debt.



                                5.
                                EU - Stability?

                                Current information
                                Given the actions of the Greek government to combat the national debt could occur in the near future to strikes and demonstrations in major cities of Greece. Travelers are advised to inform themselves in the Greek media, as well as their hosts about the current situation. Demonstrations should be avoided.



                                6.
                                The Telegraph notes he told his Cabinet, that Brussels has "created a psychology of looming collapse, that risked becoming self-fulfilling". He added that Greece had become a "guinea pig in a battle between Europe and the international markets".

                                In a poll for German newspaper Bild, 67% of Germans have said they are against a Greek bailout, and 53% said they were in favour of expelling Greece from the eurozone if it poses a danger to the single currency.

                                7.
                                Greece loses EU voting power in blow to sovereignty
                                The European Union has shown its righteous wrath by stripping Greece of its vote at a crucial meeting next month, the worst humiliation ever suffered by an EU member state.The council of EU finance ministers said Athens must comply with austerity demands by March 16 or lose control over its own tax and spend policies altogether. It if fails to do so, the EU will itself impose cuts under the draconian Article 126.9 of the Lisbon Treaty in what would amount to economic suzerainty.



                                8. Desperation:

                                Greek Politicians Want Germany To Pay War Reparations In Order To Make Up For Their Debt Disaster

                                "How does Germany have the cheek to denounce us over our finances when it has still not paid compensation for Greece's war victims?" Margaritis Tzimas, of the main opposition New Democracy party, told parliament.



                                9.

                                For Greece’s Economy, Geography Was Destiny



                                10.

                                Greece will need financial assistance amounting to between €100-120bn over the next three years, German parliamentarians claimed on Wednesday after meeting Dominique Strauss-Kahn, managing director of the International Monetary Fund, and Jean-Claude Trichet, president of the European Central Bank.



                                11.
                                Greek Crisis Is Spreading ‘Like Ebola,’ OECD Says

                                April 28 (Bloomberg) -- Germany and fellow euro-area countries must act now to stop the Greek debt crisis that’s spreading “like Ebola,” Organization for Economic Cooperation and Development Secretary General Angel Gurria said.

                                “It’s not a question of the danger of contagion; contagion has already happened,” Gurria said in an interview with Bloomberg television in Berlin today. “This is like Ebola. When you realize you have it you have to cut your leg off in order to survive.”

                                Like Ebola, which the World Health Organization calls “one of the most virulent viral diseases known to humankind,” the Greek crisis is “contaminating all the spreads and distorting all the risk-assessment measures,” Gurria said. “It’s threatening the stability of the financial system.”




                                12.

                                Facing a dire choice of additional pain or bankruptcy, Greece on Friday heralded drastic new cuts and tax increases to win rescue loans from its European partners and the International Monetary Fund — and avoid a disastrous default on government debt.



                                13.

                                Greece’s debt status has been reduced to BBB “junk”

                                Breaking news and analysis from Wall Street Pit. Stock market, economy, politics, technology, science, health and world news.


                                ATHENS, Greece -- The credit rating agency Moody's on Monday (June 14th) downgraded Greece's government bonds four notches to "junk" status amid continuing "considerable uncertainty" about the impact of measures to reduce the huge budget deficit. Despite lowering the rating from A3 to Ba1, Moody's said the risk of default is low. At the same time, the outlook on Greece's rating was defined as stable, which means virtually no movement is expected during the next 12-18 months. The government said the downgrade in no way reflects "the progress achieved over the past months or the prospects opening up from fiscal restructuring".


                                14.
                                Time for the Comies:

                                May Day 2010: Message by the Central Committee of KKE

                                Comrades, workers, Greeks and immigrants, young women and men, pensioners, unemployed,

                                KKE calls you to turn the events of this year’s 1st May in honour of the struggles and the sacrifices of our class into a new beginning of class political awareness and militant uplift in order to repel and overthrow the criminal policy of the government and the plutocracy that leads the working class, our families and children to the most savage and brutal exploitation, to permanent poverty and unemployment.








                                You must love them!

                                15.

                                Wirtschaftszahlen der meisten MOE-Länder besser als in Griechenland

                                Economic figures of most CEE countries better than in Greece

                                16.

                                GREECE FOR SALE
                                Here are some details on Greece's sell-off plans:
                                Railways Greece will sell a 49% stake in fully state-owned railway OSE, which has losses of about 1-billion euros a year and estimated debts of about 10-billion euros. The government will try to sweeten the sale by closing money losing routes and restructuring.
                                Water companies Greece will sell a 10% stake in Athens Water and 23% of Thessaloniki Water. The tender attracted companies such as French group Suez Environnement , already owning 5% of EYATH, and Spanish FCC's Aqualia.
                                Ports The state owns about 74% in Greece's largest port, Piraeus and the second-biggest port in Thessaloniki. Greece's other peripheral ports are fully state-owned. The government said it would set up holding companies for those ports and list them.
                                Airport concession The state owns 55% of the Athens International Airport. Another 40% is owned by German construction group Hochtief. The government said it would extend Hochtief's 30-year concession deal signed in 1995. It may also place its stake in a holding company and/or list it on the Athens stock exchange.
                                Gaming The government wants to retain its lucrative 34% stake in monopoly OPAP, Europe's biggest betting firm. OPAP, which made a net profit of 594-million euros last year, wants to extend its monopoly to 2030 from 2020. It also plans to divest its 51% stake in Mount Parnes casino and sell the Corfu casino.
                                Power and telecom Greece will maintain its 20% stake in OTE, which is also 30% owned by Deutsche Telekom. It will also maintain its 51% stake in profitable electricity utility Public Power Corp. and its 35.5% stake in refiner Hellenic Petroleum.
                                Real estate Greece will merge its main real estate management companies -- state real estate firm KED, tourism property management arm Hellenic Tourism Development (ETA) and Olympic Real Estate, which manages Olympic Games venues. The government said it would form two companies, which may be listed on the stock exchange to attract private investment.
                                Post Greece will sell a 39% stake in Hellenic Post, keeping a 51% majority stake.
                                Source: National Post
                                Read latest breaking news, updates, and headlines. National Post offers information on latest national and international events & more.




                                17.

                                Greeks going to Bulgaria to buy bread and cheese

                                Грабят по 2 чифта маратонки, пълнят резервоарите на границата.



                                18.

                                The biggest unenployement in Greece in the last 10 years



                                yup..





                                I'm convinced about EU!

                                If you are convinced too.. contribute to this thread with more articles alike mine
                                The purpose of the media is not to make you to think that the name must be changed, but to get you into debate - what name would suit us! - Bratot

                                Comment

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