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Кристиан Нуайе
10 марта, 10:02

Game Over for Central Banks?

"Fortunately, there is nothing predestined about what will come after the exhaustion of the new normal. The road out of the upcoming "T junction" can still be influenced in a consequential manner by the choices we make, as households, companies, and governments. But to make better choices, we need to understand the forces at play and their likely evolution. There is no better way of doing so than through an examination of the world's central banks...past, present, and future." -- Mohamed A El-Erian, "The Only Game in Town" Monetary economics is gasping for breath. The usual links between the money supply, inflation and GDP seem tenuous after the Great Financial Crisis. The world's central banks -- whose job it is to orchestrate the first two links in order to maintain growth and economic stability -- have slowed to a crawl and in some cases are walking backwards. They might be "The Only Game in Town" the title of a new book by Mohamed El-Erian, but the rules are changing. Irving Fisher, the father of monetarism, earned Yale's first PhD in economics. A mathematician, his academic advisors were a physicist and a sociologist. Despite his many contributions to economics, he became discredited after predicting that the stock market would remain at its "high plateau" days before the 1929 Crash. Eclipsed during his lifetime by John Maynard Keynes, and having lost his personal fortune as well as his reputation, Fisher tried to explain the cause of the Depression in terms of debt deflation. Building on Fisher's theory, Ben Bernanke, the former Federal Reserve Chairman, utilized his knowledge of this era to rapidly expand liquidity in order to help avoid a full-on Depression on his watch. 2008 is already eight years ago, and despite massive unprecedented intervention by central banks, worldwide growth is still sluggish and has not recovered to its pre-crisis levels. Beyond theory, there is practice, and the real economy. As Yogi Berra once opined, "In theory there is no difference between practice and theory. In practice, there is." That is why is so refreshing to read a book about economic theory written by a knowledgeable practitioner. El-Erian is the former CEO and co-chief investment officer of PIMCO, who dealt first hand (and very successfully) with financial markets as an investor. El-Erian also coined the phrase that has come to describe the situation we find ourselves in-- "the New Normal". Given recent market jitters, the question on most investors' minds is, is this going to last? Or are we still living in a prolonged free fall that began in 2007, but because of the coordination and intervention by central banks, we just haven't hit bottom yet? El-Erian quotes Larry Summers "The world has largely exhausted the scope for central bank improvisation as a growth strategy." What he envisions is a new new normal- of instability and sustained bimodal decision making. El-Erian's belief is that although a highly negative outcome could be ahead of us, nothing is foreordained. Much could depend on good policy choices by Janet Yellen, Haruyuki Kuroda, Zhou Xiaochuan and other central bankers, trying to get their arms around a new world order, as well as politicians brave enough to create fiscal stimulus in spite of demands for austerity. What makes El-Erian's book stand apart is that he knows the policymakers, and in fact is himself an active participant and respected voice in the ongoing debate. When he writes about the governor of the Banque de France Christian Noyer's central banking conference in 2014, which sparked discussion of the new role of central banks, the liveliness of El-Erian's description is based on the fact that he was there. His insider status infuses the narrative. One of the book's chapter's focuses on communications, and the opacity of the central banking decision making process. This has been a popular topic in the media recently, and has been used to level criticism against many central banks, from the Federal Reserve to the People's Bank of China. I would like to take El-Erian's discussion to another level. The real issue is not communications, but the fact that the decisions of central banks are made by a very small, elite number of individuals. Communications is the cloak used to cover the real problem: the vagaries of small group decision making. There is an entire literature about the foibles of small group decision making, which must be seen against a backdrop of increasing calls for democratization globally. The central banks represent the old guard to much of the population, and this is reflected in the US Congress. Chairman Janet Yellen's recent testimony was characterized by belligerence and ignorance of basic economic principles on the part of the questioners. But these politicians are simply reflecting their constituency, who post-crisis are not seeing the gains in terms of an increase in wages or standard of living that the big bankers on Wall Street, in spite of their errors, seem to enjoy. The irony of this of course, is Yellen's stalwart support of employment and labor gains, and her lack of concern about what Wall Street thinks about the Fed's actions. The reality is that central banks cannot create growth; they can only create the necessary but insufficient conditions that will enable economic expansion. In an environment of fiscal austerity, even hyper-low interest rates that allow government debt to accumulate nearly cost-free will fail to ignite the economy. In his blogpost, The Strong Case Against Independent Central Banks Simon Wren-Lewis, professor of economic policy at Oxford explains why recently central banks have been hamstrung and ineffective, forced to dig deeper and deeper to find new policy tools: Economists knew that the government could always get the economy out of a demand deficient recession, even if it had a short term concern about debt. The fail safe tool to do this was a money financed fiscal expansion. This fiscal stimulus paid for by the creation of money was why the Great Depression could never happen again. But the existence of ICBs (Independent Central Banks) made money financed fiscal expansions impossible when you had debt obsessed governments, because neither the government nor the central bank could create money for governments to spend or give away. Central banks were happy to create money, but refused to destroy the government debt they bought with it, and so debt obsessed governments embarked on fiscal consolidation in the middle of a huge recession. The slow and painful recovery from the Great Recession was the result. Economists did not get the economics wrong. Money financed fiscal expansion does get you out of a recession with no immediate increase in debt. But by encouraging the creation of ICBs, economists had helped create both the obsession with austerity and an institutional arrangement that made a recession busting policy impossible to enact. So if Congress and other branches of the government refuse to play their fiscal parts to aid in an economic recovery, who are the other players? Back to the big banks, back to Too Big To Fail. The Federal Reserve can make liquidity available but it cannot lend to end users, and in fact, through stress testing and reserve requirements, seems to encourage restraint. Moreover, the Fed cannot ensure that lending decisions are being made to support the best new ideas that will grow the economy. It cannot directly create jobs or businesses or growth-oriented policy reforms. Most economists would agree that the Great Financial Crisis was not really an economic crisis, but a failure of regulation of the banking and investment industry. El-Erian worries that reforms have been slow and inadequate, that risk is now shifting to the non-banking sector. Just as happened previously, the regulators will not be able to outpace financial innovators. Now, the Federal Reserve itself has begun to discuss a break up of the big banks to spur reform. Simon Johnson, the former chief economist at the IMF and now at MIT, says the foundation of the financial system is changing: After nearly a decade of crisis, bailout, and reform in the United States and the European Union, the financial system - both in those countries and globally - is remarkably similar to the one we had in 2006. Many financial reforms have been attempted since 2010, but the overall effects have been limited. Some big banks have struggled, but others have risen to take their place. Both before the 2008 global financial crisis and today, just over a dozen big banks dominate the world's financial landscape. And yet the ground is shifting beneath the financial sector, and big banks could soon become a thing of the past. Few officials privately express satisfaction with the progress of financial reform. In public, most of them are more polite, but the president of the Federal Reserve Bank of Minneapolis, Neel Kashkari, struck a chord recently when he called for a reevaluation of how much progress has been made on addressing the problem of financial institutions that are "too big to fail" (TBTF). El-Erian brings up innovations such as crowdfunding, in the context of regulatory risks. But what about disruptive technology and negative externalities that could change everything? These are multiplying. Backroom technologies could disrupt banking as we know it. According to Mile Gault, the founder and CEO of Guardtime: The financial world has finally started to move beyond the bitcoin hype, as some of the world's biggest banks begin to research blockchain applications. The country of Estonia, which secures much of its banking infrastructure with a blockchain, boasts the lowest rate of credit card fraud in the euro zone. And startups like Bitreserve are enabling completely free online-money transactions, without the volatility and risk associated with bitcoin. July 5, 2015 El-Erian engagingly discusses P2P (Peer to Peer) lending, in which he is an investor, but again, he worries about lagging regulation if the banks are disintermediated. There might be no solution to this issue. Regulation has always lagged behind innovation, or regulators would themselves be innovators. He presents ten issues that concern him most, beginning with an absence of effective growth models in the advanced economies and widespread political dysfunction. These are in reality one and the same and are caused by a lack of leadership. And naturally, political issues and economic growth are both confounded by increasing income inequality. This book was completed in early 2015, and at least two of the ten issues he lists seem quite prescient, and have now in fact arrived: extreme stock market volatility ending the new normal, and low energy prices. Both have arrived with a vengeance for the precisely the reasons he has put forward. Unemployment misses the mark, at least in the US. One issue in particular however, was concerning but has not yet come to pass. El-Erian predicts "Post market paradigm shift liquidity problems are to be expected based on current diminished broker dealer structural capacity." He says that broker dealer capacity to handle rapid shifts in portfolios is actually smaller than pre-2008, and could lead to a massive liquidity bottleneck. A range of proposals and initiatives are presented to solve these issues, the most compelling of which involves orderly debt and debt service reduction or DDSR. Influenced by his time at the IMF during the Latin American debt crisis, El-Erian is quite convincing as an advocate for debt forgiveness as a way to spur growth, rather than maintenance of unsustainable debt overhangs in the name of austerity. Returning to his thesis on the effectiveness of central banks, El-Erian is quite sober: No one should doubt if they remain 'the only game in town,' there is a real chance that they will go from being part of the solution to being part of the problem...There isn't much central banks can do to improve countries' growth engines. These institutions have neither the expertise nor the mandate to pursue reforms in education and labor markets. They are not in a position to lead national and regional infrastructure drives. They simply do not have the power to influence fiscal reforms, let alone impose them. "The Only Game in Town" presents the woof and warp of the post-crisis global financial system in its full complexity, as only someone with El-Erian's range of experience as a theorist, public servant, and private investor possibly could. He seems in no danger of making Irving Fisher's mistake of forecasting a continuation of a "high plateau" but neither does he think that a negative outcome is inevitable. -- This feed and its contents are the property of The Huffington Post, and use is subject to our terms. It may be used for personal consumption, but may not be distributed on a website.

10 февраля, 01:13

Will Italy Prompt a Global Financial Crisis?

The current situation is definitely not pretty. In the turmoil that affects equity markets, banks seem to be taking center stage. Among them, Italian banks have become the center of attention. European banks are not in good health The recent assessment of the International Monetary Fund that European Banks have not provided for 900 billion dollars of bad loans is not particularly reassuring. As early as this week, former Governor of the Banque de France Christian Noyer was bold enough to state that "Eurozone banks are going very well. It is solid". It is precisely that official speech that is the first source of worry. Is it denial or public relations? None of those are part of a Central Bank Governors' job description. The reality should be sobering. In the last five days Deutsche Bank shares lost 15% of their value. But nowhere has the situation been worse than in Italy where the bad loans amounted at the end of December 2015 to $234 billion. They represent on average 17% of the loan portfolios against 7% for the Eurozone. Monte dei Paschi di Siena: the bad bad bank On the verge of bankruptcy, the oldest European bank, Monte dei Paschi di Siena, was rescued by the Italian Government. The European Central Bank (managed by an Italian) even created a new category of support by governments to allow this to happen. The collapse was the consequence of frauds in derivatives and the purchase of another bank at an outrageously high price. Mismanagement and fraud under the eyes of the Banca d'Italia. That would however not be a disaster since MPS is the third largest bank in Italy. Of course, the Italian Government is in denial. Yet the stock price fell in a few months from 2.5 euros to 0.50 euros. There are talks about a rescue by the other Italian banks...who themselves, with the exception of Istituto San Paolo di Torino, are in trouble. Unicredit loses 45% of its value The largest bank of Italy was caught by a series of bad news that its meager profit could not correct. It lost 46% of its value since the beginning of the year. Two years ago it had to be recapitalized at half the value of its existing shares. A collapse of Unicredit would be impossible. It is a systemic Italian bank and it would make Italy's situation even worse. Italian sovereign bond yields jump Anticipation of an intervention for the Italian banks led to an increase of the yield of Italian 10-year bonds from 1.41 to 1.68% in a little over one week. It is the result of the persistence of the Italian indebtedness, second only to Greece with a 132%ratio of debt to GDP. That in turn will reduce the value of the bonds of the Italian Tesoro held in the balance sheets of Italian banks. Even if the accounting rules do not force them to account for the change, the fact is that their bad loans turn into sovereign weakness that turns into further losses fo Italian banks. The perfect vicious circle. Since Italian soveriegn bonds represent more than 120% of the equity of banks, the decrease in value weakens the equity position of banks. With no growth, the mere effect of the interest rates is to increase the debt to GDP ratio. The 2.5 trillion dollar question See from the US it looks as the same as Greece. There is however, a major difference: Italy's public debt amounts to 2,470 billion dollars. The European Central Bank or the European institutions do not have the means to rescue Italy as they did for Greece that amounted to 350 billion. that means that it would be, at least a major banking and economic crisis in Europe. I do not believe it will limited to Europe. This Italian and European banking crisis will represent a multiple of the 2008 crisis. Is there a pilot in the plane? -- This feed and its contents are the property of The Huffington Post, and use is subject to our terms. It may be used for personal consumption, but may not be distributed on a website.

12 января, 20:20

Villeroy de Galhau and Fischer express caution over inflation target change

Central Banking French governor and predecessor see dangers in raising inflation targets There could be costs to changing inflation targets in response to persistent low inflation, say François Villeroy de Galhau, Christian Noyer and Stanley Fischer

12 января, 03:53

Tuesday: Job Openings

Tuesday:• At 5:30 AM ET, Panel Discussion with Vice Chairman Stanley Fischer, Monetary Policy, Financial Stability, and the Zero Lower Bound, At the Banque de France and Bank for International Settlements Farewell Symposium for Christian Noyer, Paris, France• At 9:00 AM, NFIB Small Business Optimism Index for November.• At 10:00 AM, Job Openings and Labor Turnover Survey for November from the BLS. Job openings decreased in October to 5.383 million from 5.534 million in September. The number of job openings were up 11% year-over-year, and Quits were up slightly year-over-year.Some interesting information from Jody Kahn and Devyn Bachman at John Burns Real Estate Consulting 23,263 New Home Sales Last Year at Top 50 Masterplans, a 14% Increase over 2014In 2015, the top 50 masterplans listed in the table below sold nearly 23,300 homes, representing:• A 14% increase over 2014• Roughly 4.7% of all new home sales nationally• The highest sales volume in the 6 years we have been compiling our list...Texas continues to lead the country. The state boasts 17 of the top 50 best-selling master-planned communities, including 9 in Houston, the most of any metro area, 6 in Dallas, and one each in Austin and San Antonio. California contributed 11 top sellers, Florida had 7 communities, Las Vegas contributed 4, and Denver had 3. After getting shut out in 2014, 3 Phoenix communities joined the list ...emphasis addedI expect sales in Houston to slow in 2016 (see: Lawler: "Yes, Houston will have a problem next year" , and Houston has been a major contributor to New Home sales - this is a reason I'm less optimistic than most housing analysts on new home sales this year.

09 января, 16:09

Schedule for Week of January 11, 2016

The key economic report this week is December retail sales on Friday.For manufacturing, December Industrial Production, and the January NY Fed manufacturing survey will be released on Friday.----- Monday, January 11th -----10:00 AM ET: The Fed will release the monthly Labor Market Conditions Index (LMCI). ----- Tuesday, January 12th -----5:30 AM ET: Panel Discussion with Vice Chairman Stanley Fischer, Monetary Policy, Financial Stability, and the Zero Lower Bound, At the Banque de France and Bank for International Settlements Farewell Symposium for Christian Noyer, Paris, France9:00 AM ET: NFIB Small Business Optimism Index for November. 10:00 AM: Job Openings and Labor Turnover Survey for November from the BLS. This graph shows job openings (yellow line), hires (purple), Layoff, Discharges and other (red column), and Quits (light blue column) from the JOLTS. Job openings decreased in October to 5.383 million from 5.534 million in September.The number of job openings (yellow) were up 11% year-over-year, and Quits were up slightly year-over-year.----- Wednesday, January 13th -----7:00 AM ET: The Mortgage Bankers Association (MBA) will release the results for the mortgage purchase applications index.2:00 PM: the Federal Reserve Beige Book, an informal review by the Federal Reserve Banks of current economic conditions in their Districts.2:00 PM: The Monthly Treasury Budget Statement for December.----- Thursday, January 14th -----8:30 AM: The initial weekly unemployment claims report will be released.  The consensus is for 275 thousand initial claims, down from 277 thousand the previous week.----- Friday, January 15th -----8:30 AM: The Producer Price Index for December from the BLS. The consensus is for a 0.2% decrease in prices, and a 0.1% increase in core PPI.8:30 AM ET: Retail sales for December will be released.  The consensus is for retail sales to be unchanged in December,This graph shows retail sales since 1992 through November 2015. This is monthly retail sales and food service, seasonally adjusted (total and ex-gasoline). On a monthly basis, retail sales were up 0.2% from October to November (seasonally adjusted), and sales were up 1.4% from November 2014.8:30 AM: NY Fed Empire State Manufacturing Survey for January. The consensus is for a reading of -4.0, up from -4.6.9:15 AM: The Fed will release Industrial Production and Capacity Utilization for December.This graph shows industrial production since 1967.The consensus is for a 0.2% decrease in Industrial Production, and for Capacity Utilization to decrease to 76.8%.10:00 AM: University of Michigan's Consumer sentiment index (preliminary for January). The consensus is for a reading of 92.0, up from 91.3 in November.10:00 AM: Manufacturing and Trade: Inventories and Sales (business inventories) report for November.  The consensus is for a 0.1% increase in inventories.

Выбор редакции
15 сентября 2015, 20:42

Piketty in row over Villeroy de Galhau

Economist leads criticism of decision to hire former BNP Paribas banker to replace Christian Noyer

Выбор редакции
15 сентября 2015, 20:42

Piketty in row over Villeroy de Galhau

Economist leads criticism of decision to hire former BNP Paribas banker to replace Christian Noyer

Выбор редакции
15 сентября 2015, 20:42

Piketty in row over Villeroy de Galhau

Economist leads criticism of decision to hire former BNP Paribas banker to replace Christian Noyer

Выбор редакции
15 сентября 2015, 20:42

Piketty in row over Villeroy de Galhau

Economist leads criticism of decision to hire former BNP Paribas banker to replace Christian Noyer

08 сентября 2015, 19:15

Former COO of BNP nominated as Banque de France governor

Central Banking François Villeroy de Galhau picked by French president to succeed Christian Noyer François Villeroy de Galhau picked by French president to succeed Christian Noyer as central bank head; past experience includes BNP Paribas and French treasury

07 сентября 2015, 18:51

Bundesbank's Weidmann to replace Noyer as chair of BIS board in November

Central Banking Noyer set to retire on October 31 The Bundesbank president will take over as chairman of the BIS board of directors when Christian Noyer retires from Banque de France next month

24 июля 2015, 14:36

ECB's Noyer says Grexit risk has subsided

PARIS (Reuters) - The prospect of Greece being forced to leave the euro zone has lifted, ECB governing council member Christian Noyer said in an interview with Le Monde newspaper published on Friday.

08 июля 2015, 20:55

Greece Requests 3-Year ESM Bailout, Promises Reform, Warns on "Austerity Laboratory"; Another "Final" Chance; Majority Believe Grexit

After rallying on every bit of warrantless hope lately, today the stock markets continued there merry way: down.This is likely due to the fact that China is far more important globally than Greece, and for the first time in a while, there are a couple of simultaneous crises: One in the eurozone, and one in China. The real panic party starts when the US gets into the act with another recession or even a slowdown from the second quarter GDP bounce.Meanwhile, we have another "final chance" for Greece to do the wrong thing: accept another bailout and deepen its recession.The latest "final" deadline is Sunday. It follows numerous "final" deadlines over the past month.We Really Mean It This TimeChristian Noyer, head of the Banque de France and a member of the ECB’s decision-making governing council, said "It is the final deadline, afterwards it is too late. I fear that if there is no agreement on Sunday the Greek economy will collapse and there will be chaos."There does seem to be an "air of finality" this time because Greek banks are insolvent, flat out of cash.Then again, I don't think the real dealing begins until after Greece is forced out of the eurozone. Majority Believe Grexit Will HappenAnd for the first time ever, a majority of people polled feel that Grexit is the likely outcome. Here's the question of the day: Is Grexit what Alexis Tsipras, the Greek prime minister, really wanted all along? If so, and assuming that's what happens, he played his hand masterfully. His request for a 3-year ESM bailout and his caving in to some demands makes it appear he hopes to avoid Grexit.Greece Requests 3-Year ESM BailoutThe Guardian reports Greece Requests 3-Year Bailout and Promises Reforms Within Days. Greece has submitted an application for a third bailout programme, in an attempt to avoid crashing out of the eurozone.The finance minister, Euclid Tsakalotos, marked his third day in office by requesting a three-year aid plan from Europe’s permanent bailout fund, the ESM.He pledged that Athens would immediately begin implementing tax and pension reforms, starting next week, if Europe would provide funding needed to avert bankruptcy.On Tuesday night, the eurozone agreed to give Greece a couple more days to submit a new reform plan after Greek voters rejected creditors’ demands in a referendum, with a full EU summit on Sunday the final deadline to reach a deal.City economists polled by Reuters now believe there is more chance that Greece will leave the euro than remain. This is the first time the poll has shown a majority in the Grexit camp.Promises, PromisesTsipras made promises of pension reform and tax reform. But are those anything he can realistically promise?Greek parliament would have to approve those changes, and there is no sign his own party would even be willing.Austerity Laboratory The Financial Times quoted Tsipras on the "Austerity Laboratory". Tsipras told the European Parliament that both sides in negotiations have been “called upon to produce a fair compromise”, arguing that a deal without public backing inside Greece was futile.“My country has been transformed into an austerity laboratory. This experiment has not been a success,” Mr Tsipras said. “We demand an agreement with our neighbours, one that gives us a sign we are exiting from the crisis which will demonstrate light at end of [the] tunnel.”Those statements are simply not in alignment with reform promises. Moreover, Chritian Noyer warned "In the last six months we maintained the lifeline set up for Greek banks and put enormous sums of money on the table. Our rules oblige us to stop immediately at the point when there is no prospect of a political accord on a programme, or at the point when the Greek banking system crumbles — which would happen if it enters generalised default on all its debts.”Finally, Greece requested another "bridge loan", but the eurozone leaders crammed that in Tsipras' face saying that offer had been allowed to lapse and Athens must now come forward with a more comprehensive plan for them to agree to a new deal.Anyone Really Want a Deal?Here's the second question of the day: Does either side really want a deal?Based on statements by Greece and the creditors it appears both sides would be happy with Grexit as long as they can blame the other party.Let's hope so. Another bailout will just be additional money that will be defaulted on. It's time to face the facts. What cannot be paid back, won't be paid back.Mike "Mish" Shedlockhttp://globaleconomicanalysis.blogspot.com Mike "Mish" Shedlock is a registered investment advisor representative for SitkaPacific Capital Management. Sitka Pacific is an asset management firm whose goal is strong performance and low volatility, regardless of market direction. Visit http://www.sitkapacific.com/account_management.html to learn more about wealth management and capital preservation strategies of Sitka Pacific.

Выбор редакции
08 июля 2015, 18:06

ЕЦБ угрожает прекратить финансировать банки Греции

Европейский центральный банк (ЕЦБ) прекратит экстренное финансирование банков Греции, если Афины не достигнут соглашения с кредиторами, заявил член совета управляющих ЕЦБ Кристиан Нуайе, сообщает MarketWatch.

08 июля 2015, 15:35

Greece Requests Aid From Europe's Bailout Fund, Rushes To Submit Reform Proposal

ATHENS, Greece (AP) — Greece made a request for aid from Europe's bailout fund Wednesday as it rushed to deliver details of its proposed economic reforms in time to secure the country's future in the euro and avoid a descent into financial chaos. The government has asked for a three-year loan program and insisted the rescue will be accompanied by major economic reforms. No amount was mentioned. According to the letter sent to the European Stability Mechanism, Athens said it would "immediately implement a set of measures as early as the beginning of next week." Those include tax and pension reforms, details of which will be presented Thursday at the latest. Those are two of the issues that divided the Greek government and creditors over the past few months of protracted discussions. In the letter, the Greek government said it was asking for the loans "given the risk to the financial stability of Greece as a member state and of the euro area as a whole." Its aim, it went on, was to regain "full and affordable market financing to meet its future funding requirements as well as sustainable economic and financial situation" by the time the loan ends at the latest. Greece has been told it has to deliver details of the reforms by Thursday night so a deal can be agreed at a summit of the European Union's 28 leaders Sunday. Without a deal, the country faces an almost inevitable collapse of the banking system, and European leaders have warned Greece this is its last chance to remain in the euro. Markets are holding up despite the apparent ultimatum, with many investors predicting a last-minute deal. The Stoxx 50 index was up 0.3 percent. "Guarded optimism is the theme today, as the eurozone gives Greece one final deadline," said Chris Beauchamp, senior market analyst at IG in London. Prime Minister Alexis Tsipras, addressing lawmakers at the European Parliament, said his country is seeking a deal that would bring a definitive end to his country's financial crisis. Greece has had two bailouts from its European partners and the International Monetary Fund since May, 2010, totaling 240 billion euros ($260 billion). "We need to ensure the medium-term funding of our country with a development and growth program," Tsipras told lawmakers in Strasbourg, France. The head of France's central bank said he feared the "collapse" of the Greek economy and "chaos" if Greece doesn't strike a deal by Sunday. And in unusually strong language, Christian Noyer told Europe-1 radio he predicted "riots" in Greece if no deal is reached. He also indicated the European Central Bank would effectively pull the plug on its emergency liquidity measures for Greek banks if no deal is struck. Tsipras insisted he has "no hidden agenda" to drive Greece out of the euro and that last Sunday's referendum result, in which voters soundly rejected a previous creditors' reform proposal, does not mean a break with Europe. Applause rose from left-wing quarters in the EU Parliament when Tsipras said aid to Greece only helped out banks, not ordinary Greeks. A few called for compromise. The head of a conservative group in the Parliament, Belgium's Guy Verhofstadt, said he was "furious" at Tsipras' failure to spell out specifics of his reform plans. In Greece, meanwhile, people were struggling with an eighth day of limits on money withdrawals and shuttered banks. They cannot take out more than 60 euros ($67) a day from ATMs, are unable to send money abroad, including to pay supplies or bills, without special permission. Tsipras said Greece's troubles predated his arrival in office in January and condemned the "austerity experiment" his country has endured over the past five years that he blames for spiraling unemployment and poverty. "We demand an agreement with our neighbors, but one that gives us a sign that we are on a long-lasting basis exiting from the crisis — which will demonstrate to us that there is light at the end of the tunnel. An agreement which will bring about the credible and necessary reforms," he said. Tsipras vowed to continue reforms but warned about the austerity-weariness of the public. "This has exhausted the patience and resilience of the Greek people," he said. The Greek crisis has frayed the nerves of other European leaders, who have accused the Greek government, elected in January on promises to repeal austerity, of foot-dragging and exacerbating the situation. Highlighting the rising anger with Tsipras, European Commission President Jean-Claude Juncker had a stark warning for Greece after Tuesday's eurozone summit. "We have a Grexit scenario, prepared in detail," he said, apparently referring to the situation in which Greece would be forced out of the currency union. Greece's eurozone partners have said they want to help the country stay in the currency club while complaining about foot-dragging by the Greek government. One big sticking point has been Greece's demand for some relief on its debt burden, which stands at around 320 billion euros ($350 billion), or around 180 percent of the country's annual GDP. Germany appears to be particularly reluctant to help Greece deal with its debts if reforms aren't forthcoming. Germany's stance is at odds with the IMF — another major creditor. In a report last week, it said European states should accept longer repayment periods and lower interest rates on their loans to Greece. ___ Keaten reported from Paris. Michael Corder, Raf Casert and Menelaos Hadjicostis in Brussels contributed to this report.-- This feed and its contents are the property of The Huffington Post, and use is subject to our terms. It may be used for personal consumption, but may not be distributed on a website.

08 июля 2015, 15:35

Greece Requests Aid From Europe's Bailout Fund, Rushes To Submit Reform Proposal

ATHENS, Greece (AP) — Greece made a request for aid from Europe's bailout fund Wednesday as it rushed to deliver details of its proposed economic reforms in time to secure the country's future in the euro and avoid a descent into financial chaos. The government has asked for a three-year loan program and insisted the rescue will be accompanied by major economic reforms. No amount was mentioned. According to the letter sent to the European Stability Mechanism, Athens said it would "immediately implement a set of measures as early as the beginning of next week." Those include tax and pension reforms, details of which will be presented Thursday at the latest. Those are two of the issues that divided the Greek government and creditors over the past few months of protracted discussions. In the letter, the Greek government said it was asking for the loans "given the risk to the financial stability of Greece as a member state and of the euro area as a whole." Its aim, it went on, was to regain "full and affordable market financing to meet its future funding requirements as well as sustainable economic and financial situation" by the time the loan ends at the latest. Greece has been told it has to deliver details of the reforms by Thursday night so a deal can be agreed at a summit of the European Union's 28 leaders Sunday. Without a deal, the country faces an almost inevitable collapse of the banking system, and European leaders have warned Greece this is its last chance to remain in the euro. Markets are holding up despite the apparent ultimatum, with many investors predicting a last-minute deal. The Stoxx 50 index was up 0.3 percent. "Guarded optimism is the theme today, as the eurozone gives Greece one final deadline," said Chris Beauchamp, senior market analyst at IG in London. Prime Minister Alexis Tsipras, addressing lawmakers at the European Parliament, said his country is seeking a deal that would bring a definitive end to his country's financial crisis. Greece has had two bailouts from its European partners and the International Monetary Fund since May, 2010, totaling 240 billion euros ($260 billion). "We need to ensure the medium-term funding of our country with a development and growth program," Tsipras told lawmakers in Strasbourg, France. The head of France's central bank said he feared the "collapse" of the Greek economy and "chaos" if Greece doesn't strike a deal by Sunday. And in unusually strong language, Christian Noyer told Europe-1 radio he predicted "riots" in Greece if no deal is reached. He also indicated the European Central Bank would effectively pull the plug on its emergency liquidity measures for Greek banks if no deal is struck. Tsipras insisted he has "no hidden agenda" to drive Greece out of the euro and that last Sunday's referendum result, in which voters soundly rejected a previous creditors' reform proposal, does not mean a break with Europe. Applause rose from left-wing quarters in the EU Parliament when Tsipras said aid to Greece only helped out banks, not ordinary Greeks. A few called for compromise. The head of a conservative group in the Parliament, Belgium's Guy Verhofstadt, said he was "furious" at Tsipras' failure to spell out specifics of his reform plans. In Greece, meanwhile, people were struggling with an eighth day of limits on money withdrawals and shuttered banks. They cannot take out more than 60 euros ($67) a day from ATMs, are unable to send money abroad, including to pay supplies or bills, without special permission. Tsipras said Greece's troubles predated his arrival in office in January and condemned the "austerity experiment" his country has endured over the past five years that he blames for spiraling unemployment and poverty. "We demand an agreement with our neighbors, but one that gives us a sign that we are on a long-lasting basis exiting from the crisis — which will demonstrate to us that there is light at the end of the tunnel. An agreement which will bring about the credible and necessary reforms," he said. Tsipras vowed to continue reforms but warned about the austerity-weariness of the public. "This has exhausted the patience and resilience of the Greek people," he said. The Greek crisis has frayed the nerves of other European leaders, who have accused the Greek government, elected in January on promises to repeal austerity, of foot-dragging and exacerbating the situation. Highlighting the rising anger with Tsipras, European Commission President Jean-Claude Juncker had a stark warning for Greece after Tuesday's eurozone summit. "We have a Grexit scenario, prepared in detail," he said, apparently referring to the situation in which Greece would be forced out of the currency union. Greece's eurozone partners have said they want to help the country stay in the currency club while complaining about foot-dragging by the Greek government. One big sticking point has been Greece's demand for some relief on its debt burden, which stands at around 320 billion euros ($350 billion), or around 180 percent of the country's annual GDP. Germany appears to be particularly reluctant to help Greece deal with its debts if reforms aren't forthcoming. Germany's stance is at odds with the IMF — another major creditor. In a report last week, it said European states should accept longer repayment periods and lower interest rates on their loans to Greece. ___ Keaten reported from Paris. Michael Corder, Raf Casert and Menelaos Hadjicostis in Brussels contributed to this report.-- This feed and its contents are the property of The Huffington Post, and use is subject to our terms. It may be used for personal consumption, but may not be distributed on a website.

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08 июля 2015, 15:22

ЕЦБ угрожает прекратить финансировать банки Греции

Европейский центральный банк (ЕЦБ) прекратит экстренное финансирование банков Греции, если Афины не достигнут соглашения с кредиторами, заявил член совета управляющих ЕЦБ Кристиан Нуайе, сообщает MarketWatch.

08 июля 2015, 15:22

ЕЦБ угрожает прекратить финансировать банки Греции

Европейский центральный банк (ЕЦБ) прекратит экстренное финансирование банков Греции, если Афины не достигнут соглашения с кредиторами, заявил член совета управляющих ЕЦБ Кристиан Нуайе, сообщает MarketWatch.

Выбор редакции
08 июля 2015, 15:22

ЕЦБ угрожает прекратить финансировать банки Греции

Европейский центральный банк (ЕЦБ) прекратит экстренное финансирование банков Греции, если Афины не достигнут соглашения с кредиторами, заявил член совета управляющих ЕЦБ Кристиан Нуайе, сообщает MarketWatch.

08 июля 2015, 14:05

ЕЦБ не будет финансировать банки Греции, если страна не договорится с кредиторами

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