Political Instability Hit Greek Economy
Political developments in Greece could result in suspension of payments, new revenue measures, lack of market liquidity, investment postponing and even the reversal of October 27 agreement.
Government and market officials weigh economy’s strength in anticipation of critical political decisions.
* The prerequisites of sixth instalment remain pending. This means that even a political solution cannot ensure the release of the €8 billion tranche if Greek commitments are not implemented.
The backlog is long, as the 2012 budget should be postponed for a week under the Greek Constitution. Moreover, the loan agreement should be signed, along with implementation of medium-term fiscal program.
* State revenues shrank in October. If the revised deficit target is missed, then additional measures should be adopted in 2012.
* Liquidity in the Greek market slides, as banks remain a waiting stance regarding the release of the next instalment.
* Available funds for the Greek state last until December 10, but under very specific conditions, while the sixth instalment is officially expected on December 15.
The government has suspended almost all payments except salaries and pensions. It anticipates revenues through the extension of OPAP license, VAT collection, revenue measures and EU funds, while it has scheduled two auctions of treasury bills of €4 billion.
(capital.gr)
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Appuntamenti inderogabili.