Tsipras to Seize Public-Sector Funds to Keep Greece Afloat

[Purveyor]

Source: Bloomberg

by Nikos ChrysolorasEleni Chrepa
10:06 AM EDT
April 20, 2015

Running out of options to keep his country afloat, Greek Prime Minister Alexis Tsipras ordered local governments to move their funds to the central bank.

With negotiations over bailout aid deadlocked, Tsipras needs the cash for salaries, pensions and a repayment to the International Monetary Fund. Greek bonds fell after the move, pushing three-year yields to the highest since the nation’s debt restructuring in 2012. The order was questioned by local officials and slammed by the leading opposition party.

The decree to confiscate reserves now held in commercial banks and transfer them to the central bank could raise about 2 billion euros ($2.15 billion), according to two people familiar with the decision. It shows how time is running out for Tsipras, a point made by European officials who addressed the matter at IMF meetings in Washington in recent days.

“Central government entities are obliged to deposit their cash reserves and transfer their term deposit funds to their accounts at the Bank of Greece,” according to the decree issued Monday on a government website. The “regulation is submitted due to extremely urgent and unforeseen needs.”

Read more: http://www.bloomberg.com/news/articles/2015-04-20/greece-moves-to-seize-local-government-cash-as-imf-payment-looms

[JDPriestly]

1. Germany and France need to be careful. They may cause more trouble

in Greece with their unwillingness to be generous than they can afford.

Greece is in a strategic location in many respects. It is important to Northern Europe. I wonder what is going on in the minds of the leaders of the European market. It makes no sense to me.

[sadoldgirl]

2. I talked yesterday about this with a German

Greece had hoped to find support from Spain, Italy,
Ireland and Portugal; those countries though are
improving their economy and gave a negative
answer to Greece.

Also: It appears that the Eurozone countries are
not worried anymore about a possible loss of Greece.

On the other hand Greece figured that long or
short term they are better off with the Euro countries,
but it tries to put pressure on the EU to help them.

Just for what it is worth.

[mother earth]

3. I don't agree, the rise of Podemos/Spain speaks volumes. I support Greece & I'm not from the eu.

They are BS'ing they are not worried, everyone's watching Greece, because every country is being f'd the same way, some are in better shape, others not so much. If they weren't worried there would not be so many conflicting reports everywhere surrounding Greece. They are damned worried, and they should be. There's gotta be an end to the oligarch pillaging & plundering going on globally.

[whatthehey]

4. Following the Argentine way I see

Nobody else will loan us money (because they won't get it back) so let's raid our own public sector funds until they run out (going to make Greek public pensions really secure that way).