Greek PM calls referendum on new aid program, asks for vote of confidence
Greek PM Papandreou said yesterday that will call a referendum over the proposed new aid program for Greece. The referendum will be held after the conclusion of the discussions over the new aid package, which is expected to last until the end of the year. The content of the referendum has not yet been announced. Papandreou also said that will ask for a parliamentary vote of confidence in order to secure support for the upcoming bills that relate to the disbursement of the 6th tranche of the loan to Greece. The discussion on the vote of confidence will reportedly commence tomorrow and the voting will take place on Friday.
Greek Finmin Venizelos said that the disbursement of the next tranche will take place by November 15. Papandreou indicated that there should be a change in the constitution so that the government after the next elections, whenever they are held, to support the policies that have been agreed. PM Papandreou stated that if the government provides support to the banking sector for its recapitalization and this burdens the State budget, it will be in the form of common stock. He said that, in this case, the tax payers will benefit from any capital gains after the State sells back the stakes. Regarding the pension funds, Papandreou said that the losses from their participation in the PSI+ are too small compared to their annual State backing and committed that the government will do whatever necessary to restore their assets. The developments in the political front add uncertainty and in turn nervousness in the equities
market.
