Greek economy referendum

Greeks are preparing for a referendum on July 5 that will see the debt-ridden country either accept or reject punishing austerity measures imposed by international creditors amid a serious cash crisis, street protests and increasing threats from global institutions. 

Projections for a “haircut” of Greek bank accounts vary between 27 to 55 percent if the ECB requests a return of roughly 120 billion euros funneled to Greek systemic banks as liquidity.

Such a nightmare scenario could be one of the repercussions of a possible delay in any new bailout agreement, regardless of a “yes” or “no” vote in Sunday referendum.

By Manoj Kumar

Greece needs to implement structural reforms, International Monetary Fund Managing Director Christine Lagarde said on Monday, echoing other international creditors who have urged Athens to implement reforms to secure urgently needed funds.

Greece and its international creditors were to begin fiscal talks in Athens on March 12, a government source said, breaking a six-week impasse over attempts to overhaul the country's unpopular bailout.
      
"Talks are scheduled to begin on fiscal issues today," a finance ministry source told AFP, adding that discussions on structural reforms and banks would be held next week.

Greeks are casting their ballots for a new parliament amid substantial voter activity, international media outlets report.

The Greek government felt encouraged Tuesday by European Economic Affairs Commissioner Pierre Moscovici (photo) pointing to the December 8 Eurogroup as a key date for deciding how Greece’s relationship with the troika should evolve.

The European Union leaders’ summit concluded in Brussels on Friday without any concrete decisions having been taken about Greece’s economic future despite Prime Minister Antonis Samaras holding a series with top officials.

Prime Minister Antonis Samaras and incoming European Commission President Jean-Claude Juncker discussed on Thursday the broad strokes of Greece’s plan for emerging from its loan program as well as a pending review by the troika, which must be completed before such an exit can occur, on the sidelines of a European Union summit in Brussels.

A meeting between Prime Minister Antonis Samaras and Deputy Premier Evangelos Venizelos on Wednesday resulted in the coalition leaders agreeing that Greece should try to build up to an agreement with its lenders by the December 8 Eurogroup to exit its bailout.

Deputy Prime Minister and PASOK leader Evangelos Venizelos warned party officials on Friday to be prepared for early elections and indicated that the Socialists would be open to being part of a new coalition government.