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German FinMin: €44 Billion in One Payment to Greece only with Enhanced Control Mechanism
German Finance Minister Wolfgang Schaeuble confirmed on Tuesday evening that news that Germany considers to the payment of three bailout tranches of total 44 billion euro. As expected, Schaeuble stressed the need of an ‘enhanced control mechanism.”
“You’ll run up three tranches by the end of the year,”Schaeuble told reporters today in Brussels, when asked if all three would land in Greek coffers. “All the more important, then, that we negotiate a suitable control mechanism. And that is among the points for which we’ll be seeking a solution together over the next few days.”
Schaeuble’s comments followed a Bild newspaper report that the German government favors disbursing more than 44 billion euros ($56 billion) of aid, including unpaid tranches scheduled for the second and third quarters, in one installment.
The German finance minister didn’t specify the details of a new mechanism, saying that the issue of such a component “is a sensitive one in Greece.” He said he was confident ministers will work out the details in coming days.(Bloomberg)
On Tuesday noon, the rumor about Germany supporting the idea of giving Greece 44 billion euro in one payment seems unbelievable. 33 bilion euro would consist of the loan tranches: 31.5 billion euro for 2Q 2012, 5 billion euro for 3Q and 8.3 billion euro for 4Q.
KTG wrote earlier today:
The rumor seems unbelievable. Notorious miser Germany is allegedly willing to give Greece three tranches of bailout loan payments into the package of one: 44 billion euro.
The generous but hardly to believe it will happen move was published on yellow press BILD newspaper, citing a German government source.
Germany wants to bundle three tranches of aid to Greece into one payment of more than 44 billion euros, German newspaper Bild said on Tuesday, citing German government sources.
A German finance ministry spokeswoman, asked to comment on the Bild report, said no final decision had yet been made on next loan payments to Greece.
Bild said the payment would comprise the 31.3 billion euros dating from the second quarter that Greece hopes to receive soon to avert bankruptcy along with further tranches of 5 billion euros and 8.3 billion euros for the third and fourth quarters. (REUTERS)
I can’t resist to think about some mean tricks labelled as “terms & conditions” for Germany to approve such a generous move.
On first thought, I would think of an escrow account were all this money will be deposited. Under German supervision, of course. And a nice profit for Berlin via the interest rates.
On second thought, I could think of Wolfgang Schaeuble considering to ask additional austerity measures and thus as soon as possible: he would deprive my parents of their pensions and medical care, cut off any prescription medicine, get my children to work full-time for 250 euro per month.
Is Schaueble really that mean? I don’t know, but I wouldn’t be surprised if he would trade the ’44 billion euro’ to serve best German interests. Otherwise, why would he do that?
Meanwhile, high-ranking official at the Greek finance ministry without clearly confirming the claims, said:
“We are still stuggling, th eissue is not over yet, there are toguht negotiations, therefore nothing should be considered as given.” (capital)
On Monday in Brussels and at the margins of Eurogroup meeting, Wolfgang Schaeuble said:
“Tthere was no talk at the Eurogroup meeting of boosting the level of aid to Greece, but he indicated that there was room to help Athens by adjusting interest rates and debt maturities.” (MNI)
International media are still puzzled as to whether such a generosity from the German side was possible.
PS If Mercury weren’t retrograde, I would say “Nice joke. You know the one with …”
2012-11-13 21:44:15
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