International Financial Law Prof Blog

Editor: William Byrnes
Texas A&M University
School of Law

Saturday, February 14, 2015

Greece default teetering with little tax collection and huge deposit outflows from its banks

Greece-euroReuters Exclusive: Rising deposit outflows and precaution behind extra Greek bank ELA access - "The ECB on Thursday raised the cap on what Greek banks can get from the Bank of Greece through the Emergency Liquidity Assistance (ELA) window by about 5 billion euros to 65 billion euros. The extension will run until Feb. 18 when the ECB Governing Council will reappraise the situation."

RT News reports that "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 €317 billion debt. Two bailouts were paid in 2010 and 2014 totaling €240 billion."

The Financial Times reports that "The Greek government also said on Thursday that tax revenues were 20.3 per cent below target — a shortfall of €933m — heightening concerns that the country will be unable to meet €4.1bn of debt repayments due in the next six weeks ...".

The Guardian reports that "The current bailout programme expires on 28 February, but Monday 16 Februaryis the last date Greece can apply for an extension, according to Jeroen Dijsselbloem, chair of the eurogroup of eurozone finance ministers. Dijsselbloem, who is also Dutch finance minister, said on Friday he was “very pessimistic” about getting a new deal at Monday’s meeting of eurozone finance ministers."

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