Titoli di Stato area Euro GRECIA Operativo titoli di stato - Cap. 1

[tommy271]

Home buyers opting for cheaper older properties



Residential property prices are showing signs of decline due to the drop in demand for new homes in favor of older ones, data compiled by the estate agent network RE/MAX International Inc indicate. A report concerning sales via the network in the first six months of this year shows a 15 percent price drop compared to 2009, while transactions through its agents across Greece were down by 11.6 percent year-on-year.
This signifies ‘a rather mild adjustment in real estate demand,’ the report suggests. RE/MAX noted the rise in demand for older houses, as across the country almost nine in every 10 properties sold from January to June 2010 were used dwellings, while in Attica alone the ratio of used homes sold to newly built ones was 8:1.
Remarkably, some 43 percent of residential properties sold through RE/MAX were at least 30 years old, illustrating a clear shift by buyers toward older houses, which are more affordable.


(Kathimerini.gr)

 

[tommy271]

IMF to send permanent monitors

Two officials in Athens to observe tax collection and spending crackdown; report notes ‘good start’

The International Monetary Fund, one of the debt-ridden government’s three creditors, has decided to dispatch two permanent officials to Athens to monitor the progress of tax collection and a public spending crackdown, sources revealed yesterday.
While acknowledging that the PASOK government has the political will to change the system, IMF officials have doubts about whether the public administration is adequately equipped to implement the changes at the fast pace that is required, the sources said. According to the same sources, IMF officials are concerned that the progress made while representatives from the Fund are in Athens immediately freezes once they leave. Initially, the IMF is to dispatch two permanent officials – one an expert in taxation, the other in curbing public spending. These two are to work closely with the Finance Ministry in implementing reforms and will also provide advice where necessary. There are also plans for another two IMF officials to subsequently relocate to Athens to “push for the implementation of reforms at the political level,” the sources said.
It is believed that officials from the IMF – as well as the European Central Bank and the European Union countries that have agreed to contribute to the 110-billion-euro loan package to Greece – are chiefly concerned about the government’s tax crackdown. There are fears that a lack of progress in boosting state revenues might lead to the need for new austerity measures, which could fuel social unrest.
The news of the imminent IMF arrivals came yesterday as the Washington-based institute issued a report noting that Greece had made a “strong start” in implementing reforms and austerity measures to get the economy back on track but had to be wary of 10 looming risks that could derail progress. These include state spending, which must be kept in check, and the rate of revenue collection, which is below target and must be increased. Another problem area is growth, which is lagging and must be stimulated if the economy is to be revived, according to the IMF.


(Kathimerini.gr)

 

[Grisù]

IMF: impressive start of the implementation of the fiscal plan, but risks still in place
In the review report of the Memorandum of Economic and Financial Policies execution, the IMF indicates that the government has made a strong start, with all the performance criteria for the period met and the important structural reforms ahead of schedule. The IMF though indicates the government's difficulties to get the budget revenues collected, which however is offset by higher than expected cuts in expenditure. The report raises concerns on the government's ability to fight tax evasion culture in Greece, with a possible failure leading to further tax increases and cost cutting, in order to compensate for the missing revenues. IMF also recognizes the expenditure control at the municipal government level and health sector as major challenges for the government, while identifies the restoration of competitiveness and the boost of growth as critical for the program's success. Additionally, stresses the importance for the liberalization of the closed professions, reduction in the barriers to development of the tourism and retail sectors, as well as the strengthening of the privatization program. In the financial sector, liquidity remains tight but manageable, with NPLs in 2Q rising above 1Q's 8.2% and funding costs increasing. Regarding the reform program in the financial sector, IMF says that it will include a due diligence to all the banks that the State participates in, in order to assess their economic value. Following that, the government will present a plan aiming at preserving financial stability. This may include a possible sale of a significant part of the State participations, in an open process in which both domestic and foreign investors could participate. The final report is expected in March 2011.

 

[Grisù]

L'intervento di Bini Smaghi sintetizzato ieri nelle news.
ECB: ECON Committee Hearing on ?Improving the economic governance and stability framework of the Union, in particular in the euro area?

Un passaggio interessante...
Tensions in the euro area financial markets mounted significantly in early May, reaching unusually high levels in some segments, higher even than after the failure of Lehman Brothers. Just to quote a few figures, between mid-February, right after the first European Council meeting on Greece, and Friday 7 May, the spread between the 10-year Greek and German government bonds increased by about 650 basis points. At the same time, the spreads for the Irish, Portuguese and Spanish government bonds also went up, by around 150, 230 and 90 basis points, respectively (see chart 1). Similarly, premia on credit default swaps (CDSs), a proxy for sovereign risk, also increased substantially. Interestingly, the CDS premium on German government bonds (i.e. the price to insure against their default – whatever that means!) increased to close to 60 basis points (see chart 2).

 

[tommy271]

FinMin's contacts in London

LONDON (ANA-MPA/L. Tsirigotakis) - Greek Finance Minister George Papaconstantinou met for three hours on Wednesday with international investors and briefed them on the Greek economy's programme, as well as on investments opportunities that Greece is providing at present.

The Greek minister underlined the new legislative framework which is being created aiming at attracting and facilitating foreign investments.

At the same time, Papaconstantinou gave a briefing on the developments in the Greek economy, as well as on investments issues in Greece in interviews he gave to important foreign media and specifically to the economic television channel Bloomberg, the Reuters news agency, the economic and political magazine Economist and the newspapers "Financial Times" and "Wall Street Journal." Papaconstantinou left for Paris at 6 o'clock London time.

***

(Reuters) - Greece's economic reforms are on track and real change is under way, Prime Minister George Papandreou said on Thursday.
"We're on track, Greece is on track. We're taking the pain but we're making real progress, real change. Greece will come out stronger and Europe will come out stronger," he told reporters on arrival at an EU summit in Brussels.

 

[tommy271]

Papaconstantinou΄s Messages To Institutional Investors



The memorandum is not sufficient to overcome the debt crisis in Greece, Finance Minister George Papaconstantinou indirectly said yesterday in London arguing that the loan of 110 billion is insufficient to meet the financing needs of the economy, since it can not compensate for the exclusion of Greece from the markets.

He added that restructuring of debt is out of question because of the damage it would cause to the eurozone.

This assessment was made in an interview with the WSJ, a publication that has repeatedly argued that Greece can not avoid restructuring its debt.

On high borrowing costs and high debt levels, he noted that “clearly this is not a sustainable situation."

Concerns on debt have risen in the last ten days for two main reasons.

The first has to do with the fact that the "finish line" of the Memorandum as described by Prime Minister George Papandreou in Thessaloniki will find Greece in a long recession (4-5 years) while the public debt will have exceeded 145% of the GDP, suggesting very high interest and amortization obligations.

The second reason concerns the apparent deterioration of the debt in the eurozone and the possible need to activate the massive EUR750 bil. bailout package after the problems occurred in the Irish banking system.

The interest rates on government bonds of Greece, Portugal, Ireland and Spain have already returned to levels similar to those at the height of the crisis in late spring, prior to the activation of the rescue package for Greece and the creation of the European Financial Stability Fund.

Papaconstantinou’s comments in the interview with the WSJ were reflected on Greece’s T-Bill auction, since the interest rate was higher compared to the last auction in July, despite the fact that in the meantime the implementation of the Memorandum has started and Greece has already received two instalments from its bailout loan.

(Capital.gr)

 

[tommy271]

GRECIA: PAPACONSTANTINOU, MOLTA STRADA DA FARE MA NON FALLIREMO (FT)

(ASCA) - Roma, 16 set - Per la Grecia c'e' ancora molta strada da fare per risanare i conti pubblici, ''abbiamo fatto un consolidamento della finanza pubblica senza precedenti. E' vero le entrate fiscali sono inferiori a quanto preventivato, ma saliranno entro fine anno''. Cosi' George Papaconstantinou, ministro delle finanze della Grecia, in una intervista al Financial Times. Il problema del paese ''e' riconquistare la fiducia dei mercati finanziari e degli investitori'', prosegue il ministro che pero' esclude l'ipotesi dell'insolvenza: ''Non ci' sara' la ristrutturazione del debito pubblico, troppe le conseguenze per l'intera Eurozona''.


***


La Grecia in viaggio alla ricerca di fiducia


(Teleborsa) - Roma, 16 set - Lo scetticismo è un boccone amaro da mandar giù, cosi come la sfiducia, che in questo primo scorcio del secolo ha rappresentato un morbo letale per le maggiori economie avanzate, travolgendo gli assetti mondiali dell'economia.

Ed è nell'ottica di rivestire abiti di affidabilità e trasparenza che il Ministro delle finanze greco, George Papacostantinou, ha avviato un roadshow in Europa, con l'obiettivo di rassicurare gli investitori internazionali ed escludere, ancora una volta, la possibilità di un default della Grecia. Ma come garantire che questa eventualità sia completamente e definitivamente esclusa? Il fondamento viene trovano nella stessa salute ed affidabilità dell'Eurozona. Ebbene, Papacostantinou ha sottolineato che il costo della ristrutturazione del debito della Grecia potrebbe ricadere sull'intera Eurozona, travolgendo anche gli altri Paesi periferici, come il Portogallo e l'Irlanda.

E poi c'è sempre un asso nella manica. Papacostantinou è stato infatti accompagnato da un drappello di autorità di primaria importanza internazionale. Alle sue spalle gli esponenti del Fondo Monetario Internazionale e della Banca Centrale Europea, preoccupati che gli aiuti concessi al Paese del Mediterraneo potessero sortire gli effetti sperati.

E così si vola da Londra ad altri grandi capitali europee, come Parigi e Francoforte, cercando di convincere la comunità finanziaria internazionale che "un default della Grecia non fa comodo a nessuno". Queste almeno le parole usate da un membro del FMI per convincere gli investitori.

Ma oltre le parole ci sono i fatti, anche se ci vorrà un po' di tempo per dimostrare che le riforme economiche e del lavoro varate da Atene avranno successo. Intanto, la ricostruzione della fiducia passa anche per un attento controllo della affidabilità del Paese europeo. A presidio di Elstat, l'ufficio statistico nazionale, ci sono ora alcuni ufficiali del FMI, a garanzia di una diffusione dati veritiera, ma alcuni esponenti delle Istituzioni internazionali si sono fatti carico anche del controllo delle maggiori voci di spesa del Governo greco.

La parola d'ordine? Fiducia ed affidabilità. E sono proprio questi i fondamenti di una ripresa, che non passa tanto per la crescita, il recupero della spesa dei consumatori e la produzione, visto che anche l'America stenta a far ripartire il motore dell'economia, quanto per un rientro della Grecia nell'alveo dei Paesi di indubbia affidabilità. E poi c'è il rigore sulla spesa, che si impone non solo all'esecutivo ellenico, ma ai Governi delle principali economie occidentali.

***

GRECIA: PAPACOSTANTINOU ESCLUDE RISTRUTTURAZIONE DEBITO

10:03 16 SET 2010

(AGI) Roma - Il ministro greco, George Papacostantinou esclude il rischio che il suo paese sia costretto a ristruttrare il debito. Il ministro delle Finanze di Atene interviene sul Financial Times: "La ristrutturazione del debito non ci sara' - assicura - Un'eventuale ristrutturazione della Grecia avrebbe conseguenze molto ampie per l'Europa". I commenti del ministro arrivano mentre e' in corso un roadshow con gli investitori a Londra per convincerli a comprare titoli del debito pubblico greco a lunga scadenza. "SE la Grecia dovesse ristrutturare - aggiunge - chi al mondo comprerebbe piu' titoli di paesi periferici? Sarebbe la rottura dell'unita' europea".

***
In italiano ...

 

[tommy271]

Greece΄s Q2 Jobless Rate Rises To 11.8%



Greece’s Q2 unemployment rate hit 11.8% compared with 11.7% in the previous quarter, and 8.9% in the corresponding quarter of 2009, the country’s statistics agency said Thursday.

In the 2nd Quarter of 2010 the number of employed amounted to 4,426,992 persons while the number of unemployed amounted to 594,032.

The number of employed persons increased by 0.03% compared with the previous quarter, and decreased by 2.3% compared with the 2nd quarter of 2009.

The number of unemployed persons increased by 1.2% compared with the previous quarter and by 34.2% compared with the 2nd quarter of 2009.

(Capital.gr)

 

[Noloss]

MARKET TALK BOND: Bund accelera al ribasso dopo asta Spagna

MF-Dow Jones - 16/09/2010 11:41:27

MILANO (MF-DJ)--Il future sul Bund a dicembre accelera al ribasso dopo la chiusura dell'asta di obbligazioni decennali e trentennali spagnole, ricevute molto positivamente dal mercato con bid-to-cover superiori a 2.

La ripresa della propensione al rischio sul mercato obbligazionario spinge il Bund a 129,62 punti, in calo dello 0,38% e vicino ai minimi mensili raggiunti lunedi' a quota 129,53.

 

[tommy271]

ANALYSIS-Euro zone crisis redux? Not really


Friday September 17, 2010 08:30:10 AM GMT



By Paul Taylor


PARIS, Sept 16 (Reuters) - There are days when it looks like deja vu all over again for the euro zone.
But the debt crisis that shook the European single currency area in April and May, sparking panic on global financial markets, is unlikely to return with full force.
True, yield spreads between Greek, Portuguese and Irish bonds and benchmark German Bunds, and the cost of insuring those countries' debt against default, have returned to near the peaks they reached at the height of the crisis last April and May.
Concerns about spillover of bank liabilities onto government balance sheets, notably in Ireland, and a slowdown in economic recovery with a contraction in some peripheral euro area economies, are weighing on bonds and the euro.
But the creation of a financial safety net for the whole 16-nation euro zone in May after a IMF/euro zone bailout for Greece means there is no longer a fear of a systemic meltdown of the single European currency that existed earlier this year.
Investors now understand that there is a German chequebook underwriting the euro area, and that scalded governments across Europe are cutting their budget deficits and enacting long-resisted structural reforms.
"We have put out the main forest fire, but there are still some smaller fires around which could flare in a strong wind," said a European official, who spoke on condition of anonymity because he is in the thick of financial firefighting.
Prominent among those are revenue shortfalls in Greece and Portugal which raise doubts about their ability to meet deficit reduction targets this year, and huge unresolved bank liabilities in Ireland, officials and market participants say.
"We are still working our way through the last phase of the financial crisis and the sovereign debt crisis," said Marco Annunciata, chief economist at Italian bank UniCredit <CRDI.MI>. "There are similar concerns to what we faced in April and May, but nowhere near so serious because there has been the policy response of the EFSF and countries such as Spain have been courageous in taking structural reforms," he said.

UNCERTAINTIES ABOUND
Despite the creation of a 440 billion euro ($571 billion) European Financial Stability Facility (EFSF) as a backstop for any euro country which, like Greece, were shut out of credit markets, uncertainties still abound, making investors nervous.
The premium investors demand to hold 10-year Irish government bonds rather than German benchmarks remains near record highs at around 370 basis points and Portuguese spreads are only a little lower, while Greece faces a yawning premium above 900 basis points -- although it was even higher.
Of the so-called "peripherals", Spain seems to have re-established the most credibility. Its spread has narrowed significantly to around 175 basis points.
EU officials say Ireland and Portugal, the two states seen at greatest risk, are determined to avoid the political humiliation of going to the EFSF, which would impose draconian IMF-style austerity in exchange for loans on tough terms.
Ireland faces a possible final bill of more than 25 billion euros for sorting out nationalised failed bank Anglo Irish [ANGIB.UL], but the EU officials say Dublin is insisting it can borrow the funds it needs in the market.
The ever-rising Irish bill, and doubts about the reporting of sovereign debt exposure, have shaken investors' faith in July's EU-wide bank stress tests, which found that the 91 biggest EU banks needed only 3.5 billion euros in extra capital.
"There is still some residual uncertainty on how much more money will be needed to recapitalise the banking system. There's the risk of (public debt) restructuring in Greece, Portugal and Ireland," Annunciata said.

DOWNTURN
Fears of a lurch back towards recession in Europe have also fuelled a flight to safety among investors, as have doubts about the ability of governments to stick to austerity measures, pension and labour market reforms as they face public protests.
A startling rise in German GDP growth in the second quarter dragged the euro zone along with it but more recent data suggest much slower expansion in Europe's largest economy in the coming period, while its weaker peers still languish.
EU leaders have yet to agree on tougher sanctions for deficit sinners, let alone on more contentious German proposals for an orderly insolvency procedure for states, and low growth makes austerity even harder.
Moritz Kraemer, head of sovereign ratings at Standard and Poor's, noted that Portugal, Greece, Spain, Ireland and non-euro Britain were all on negative outlook, meaning there was historically a 1-in-3 chance of a further downgrade.
"We are certainly not in the situation of last April when sovereigns were being shut out of the market, but it takes time for governments to establish a track record of being willing and able to carry out the fiscal adjustment," Kraemer told Reuters.
The main shock to public sector debt would come from low economic growth, he said. "Consolidation is very hard if there's no real growth," he said.
It is also unclear whether European government debt is truly guaranteed against default, and for how long.
Despite Athens' vehement rejection of the notion, many economists believe Greece will eventually have to restructure its debt, projected to reach more than 140 percent of national output, and force creditors to take losses.
"Investors are confused. We were told initially there would be no bail-out. Then when markets started pricing in a default risk, we were told we should not be doing that because there is 'solidarity' in Europe," said Annunciata.
"No wonder markets are having difficulty repricing risk."
All those concerns suggest while the worst of the bloc's crisis has passed due to policy underpinning, investors still have numerous reasons to steer clear of its weaker members.
A senior interest-rate trader said the Greek crisis had severely curtailed institutional clients' risk appetite and this could limit demand for the bonds of Spain, Portugal, Ireland and even Italy, as well as Greece, over the next year.
The supply of government paper to refinance maturing debt and persistent high budget deficits could outstrip demand, creating significant tensions and high market volatility with possible contagion effects, he said. (Editing by Mike Peacock)