Germany has earned around 2.9 billion euros in profit from interest since the first bailout for Greece in 2010.
As KeepTalkingGreece reports, this is the official response of the Federal Government to a request submitted by the Green party in Berlin.
The profit was transmitted to the central Bundesbank and from there to the federal budget.
The revenues came mainly due to purchases of Greek government bonds under the so-called Securities Markets Program (SMP) of the European Central Bank (ECB).
Previous agreements between the government in Athens and the eurozone states foresaw that other states will pay out the profits from this program to Greece if Athens would meet all the austerity and reform requirements. However, according to Berlin’s response, only in 2013 and 2014 such funds have been transferred to the Greek State and the ESM. The money to the euro bailout landed on a segregated account.
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Showing posts with label Greek Banks. Show all posts
Showing posts with label Greek Banks. Show all posts
April 25, 2017
The IMF Is Not Done Destroying Greece Yet
Austerity is over, proclaimed the IMF this week. And no doubt attributed that to the ‘successful’ period of ‘five years of belt tightening’ a.k.a. ‘gradual fiscal consolidation’ it has, along with its econo-religious ilk, imposed on many of the world’s people. Only, it’s not true of course. Austerity is not over. You can ask many of those same people about that. It’s certainly not true in Greece.
IMF Says Austerity Is Over
Austerity is over as governments across the rich world increased spending last year and plan to keep their wallets open for the foreseeable future. After five years of belt tightening, the IMF says the era of spending cuts that followed the financial crisis is now at an end. “Advanced economies eased their fiscal stance by one-fifth of 1pc of GDP in 2016, breaking a five-year trend of gradual fiscal consolidation,” said the IMF in its fiscal monitor.
In Greece, the government did not increase spending in 2016. Nor is the country’s era of spending cuts at an end. So did the IMF ‘forget’ about Greece? Or does it not count it as part of the rich world? Greece is a member of the EU, and the EU is absolutely part of the rich world, so that can’t be it. Something Freudian, wishful thinking perhaps?
Read the entire article
IMF Says Austerity Is Over
Austerity is over as governments across the rich world increased spending last year and plan to keep their wallets open for the foreseeable future. After five years of belt tightening, the IMF says the era of spending cuts that followed the financial crisis is now at an end. “Advanced economies eased their fiscal stance by one-fifth of 1pc of GDP in 2016, breaking a five-year trend of gradual fiscal consolidation,” said the IMF in its fiscal monitor.
In Greece, the government did not increase spending in 2016. Nor is the country’s era of spending cuts at an end. So did the IMF ‘forget’ about Greece? Or does it not count it as part of the rich world? Greece is a member of the EU, and the EU is absolutely part of the rich world, so that can’t be it. Something Freudian, wishful thinking perhaps?
Read the entire article
March 7, 2016
Are Greek Banks About To Charge For The Privilege Of Banning €500 Bills?
Officials would have you believe that all of this talk about banning cash is nonsense - a myth likely perpetuated by fringe bloggers or else by Austrian economists in the early stages of dementia.
The problem, however, is that we get more signs that cash is on the way out each and every day.
Take Larry Summers, who reckons it might be time to get rid of the $100 note in order to “make the world a better place” (the idea being that only criminals transact in high denomination notes). There’s also Citi’s Willem Buiter, and the German Council of “Experts” Peter Bofinger, and Harvard’s Kenneth Rogoff, and the list goes on. In fact, just yesterday we learned that Sweden will likely be completely cashless in the short space of 5 years.
As mentioned above, there’s always this amorphous notion of fighting crime built in there somehow as if the world's central banks recently adopted a Batman mandate to go along with price stability, but the real reason is, and always will be, simple: controlling citizens’ economic decisions. Or, put a little more harshly: stripping depositors of their economic autonomy.
Do away with cash and you can set rates as low as you want them. People not spending enough to get the economy moving? Well to hell with those people - set interest rates at -30%. You can bet they'll start spending then. Economy overheating? No problem, jack interest rates on savings up to +20% and watch the personal savings rate rise.
Read the entire article
The problem, however, is that we get more signs that cash is on the way out each and every day.
Take Larry Summers, who reckons it might be time to get rid of the $100 note in order to “make the world a better place” (the idea being that only criminals transact in high denomination notes). There’s also Citi’s Willem Buiter, and the German Council of “Experts” Peter Bofinger, and Harvard’s Kenneth Rogoff, and the list goes on. In fact, just yesterday we learned that Sweden will likely be completely cashless in the short space of 5 years.
As mentioned above, there’s always this amorphous notion of fighting crime built in there somehow as if the world's central banks recently adopted a Batman mandate to go along with price stability, but the real reason is, and always will be, simple: controlling citizens’ economic decisions. Or, put a little more harshly: stripping depositors of their economic autonomy.
Do away with cash and you can set rates as low as you want them. People not spending enough to get the economy moving? Well to hell with those people - set interest rates at -30%. You can bet they'll start spending then. Economy overheating? No problem, jack interest rates on savings up to +20% and watch the personal savings rate rise.
Read the entire article
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