Russia to the rescue? [View all]

[another_liberal]

Last edited Fri Jan 30, 2015, 04:15 PM - Edit history (1)

The Russian Federation is offering to loan Greece the cash it needs to hold off international creditors and prevent yet worse "austerity" as demanded by the European Central Bank and International Monetary Fund. This injection of Russian money could halt some long feared actions, such as wholesale sell-off of properties owned by the Greek government. "But how can Russia afford that," one may ask, "aren't the Russians broke because of our sanctions?" No, actually they are nothing of the sort; in fact, the Russian government still holds one of the largest reserves of foreign currency in the World. It's everyone else in Europe who is suffering losses due to anti-Russian sanctions.

Russian Finance Minister Anton Siluanov. (RIA Novosti)


Russia might bailout Greece – finance minister


Greece hasn’t outright asked Russia for a loan, but Russian Finance Minister Anton Siluanov said Moscow wouldn't rule it out. His statement comes days after Greece openly opposed further economic sanctions against Russia.

"Well, we can imagine any situation, so if such [a] petition is submitted to the Russian government, we will definitely consider it, but we will take into account all the factors of our bilateral relationships between Russia and Greece, so that is all I can say. If it is submitted we will consider it," Siluanov told CNBC in an interview in Moscow on Thursday.

The new left-wing Syriza government in Greece won a majority at last Sunday’s election on the promise to renegotiate the country’s €317 billion debt and end austerity. Greece needs to negotiate with EU policymakers by February 28 in order to receive the next tranche of bailout funds. If Athens doesn’t get the money it will have difficulty servicing its debt. Two bailouts were paid in 2010 and 2014 totaling €240 billion. The new government was quick to show support for Moscow, and has openly called for an end to Russian sanctions, and may veto any future sanctions.

Siluanov applauded Greece’s stance on sanctions as “pragmatic” and “economically justified.” On Thursday the European Commission decided to extend sanctions against Russia through September 2015, but did not add any broader economic measures. A spokesperson for the new PM Alexis Tsipras said Greece didn’t approve of any further restrictive measures. Between announcing it doesn’t intend to pay off its €317 billion debt in full and blocking Russia sanctions, Greece has emerged as a wild card among the 29 countries of the EU.

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Read more at: http://rt.com/business/227751-russia-greece-financial-aid/

Update:

Greece won’t cooperate with ‘troika,’ rejects aid extension


The new left-wing Greek government has said that it will not cooperate with the ‘troika’ of international lenders, and does not plan to seek an extension for its aid package which is set to expire at the end of February.

Without the aid, Greek banks could face being shut off from European Central Bank funding.

“This position enabled us to win the trust of the Greek people,” Greek Finance Minister Yanis Varoufakis said Friday during a joint press conference with Jeroen Dijsselbloem, head of the eurozone finance ministers’ group.

The meeting between Varoufakis and Dijsselbloem is to lay the groundwork for visits by newly-elected Prime Minister Alexis Tsipras and the finance minister to London, Paris, and Rome next week. The new Greek leadership has voiced its intention to attempt to loosen the terms of the massive €240 billion (US$271 billion) bailout.

Read more at: http://rt.com/news/228031-greece-troika-varoufakis-bailout/