Now Reading
Piraeus Bank will write off credit cards and retail loans up to 20,000 euros for Greeks who qualify

Piraeus Bank will write off credit cards and retail loans up to 20,000 euros for Greeks who qualify

Post originally appeared on Zerohedge.

Over the past several months, as a result of their lockout from capital markets, Greek banks’ reliance on the ECB’s Emergency Liquidity Assistance has soared, and at last check was somewhere in the mid-€70 billion range.

The conventional wisdom was that the ECB was merely plugging the hole created weekly (and often, daily) as a result of the chronic Greek bank run which has seen tens of billions in deposits withdrawn from Greek banks since Syriza officially took power earlier this year.

However instead of merely plugging the hole left from declining liabilities (deposits), what the ECB’s ELA funding appears to also be doing is compensating for a rapid write down in bank assets (loans) as well, in the form of charged off Non-Performing Loans.

According to Reuters, one of the leading Greek financial institutions, Piraeus Bank will write off credit cards and retail loans up to 20,000 euros ($21,484) for Greeks who qualify for help under a law the leftist government passed to provide relief to poverty-stricken borrowers, it said on Thursday.

As a reminder, the tension over the Syriza’s treatment of “austerity” is precisely the reason why the government, which is now insolvent and demanding another European bailout without calling it a bailout, is being generous with one hand – such as writing off unrepayable debts – while confiscating pension funds and municipal cash reserves with the other.

Greece has also been engaging in other, less savory check kiting schemes. Several days ago the NYT reported that “Greek banks have even begun to issue bonds to themselves and, after securing a government guarantee, have used the securities to secure short-term financing — a practice that was excoriated by Yanis Varoufakis before he became the Greek finance minister.”

On April 8, for example, the National Bank of Greece self-issued €4.1 billion of six-month bonds that carried state backing. But with Greece on the verge of default — Mr. Varoufakis has frequently said his country is bankrupt — those guarantees are no longer worth much.

Subsequently the ECB, which had previously encouraged precisely this scheme to keep insolvent Italian and Spanish banks operating in 2012 and 2013, made it quite clear that it frowns upon such a circular creation of money out of thin air, especially when the only “guarantee” is that of a bankrupt state.

In any event, the big question now is: how will Greece, which every day is engaged in constant negotiations with the Troika, come up with an extension to the unpopular bailout/austerity program that is the hated legacy of the previous regime without calling it precisely that, while on the other hand, how will Europe cover up the fact that Greeks are now openly receiving a gift in the form of a debt charge, and how will Germans react when the German press covers the front pages with more news of German-funded bailouts of Greeks (even though the underlying motive, of course, is to keep the Euro and avoid a return to the hated Deutsche Mark).

And just to hammer that point in once again, earlier today Greek FinMin Yanis Varoufakis told a French magazine that the risk that Greece would have to leave the euro if it has to accept more austerity is no bluff, saying that no one could predict what the consequences of such an exit would be.

Or, back to square one, which as we explained in February, is a battle of leverage: is the threat to Europe from a Grexit higher than the threat to Greece from ending up without funds.

 

In a conversation with philosopher Jon Elster conducted at the end of March and published in France’s Philosophie Magazine, Varoufakis, a specialist in game theory, said this was not the time to bluff over Greece’s debt talks.

 

“We cannot bluff anymore. When I say that we’ll end up leaving the euro, if we have to accept more unsustainable austerity, this is no bluff,” Varoufakis is quoted as saying.

 

Greek Prime Minister Alexis Tsipras called for a speeding up of work to conclude a reform-for-cash deal with euro zone creditors to keep his country afloat after talks with German Chancellor Angela Merkel on Thursday.

 

The leftist Greek premier met the conservative German leader a day before euro zone finance ministers meet in Riga to review progress – or the lack of it – in slow-moving negotiations between Athens and its international lenders.

Unfortunately for Greece, in contrast to the height of the debt crisis in 2012, when Grexit fears spurred panic selling of other weak euro zone sovereigns, investors now seem relaxed about the fate of Greece, which accounts for just 2 percent of the region’s economy. “Asked what would happen if Greece was to leave the euro, Varoufakis mentioned comments made by European policymakers who say any contagion effect could be avoided and added that, on the contrary, he believed the consequences would be unpredictable. ‎ “Anyone who pretends they know what would happen the day we’ll be pushed over the cliff is talking nonsense and is working against Europe,” he said.

Still with the Eurostoxx rising to record highs with every passing day even as the Greek financial situation deteriorates, the market has effectively called the Greek bluff. As a result, Greece has been forced to pull its last remaining trump card. Russia.

See Also

The increasing pivot by Greece toward the Kremlin has also been extensively covered here, most recently in the form of a near-agreement between Athens and Gazprom to launch the Turkish Stream pipeline, a deal that would also see Russia giving Greece a €5 billion loan. It is precisely the threat that Russia will bypass Ukraine entirely and provide all of Europe’s gas via the Turkish Stream, that has finally gotten Europe’s, and America’s, attention.

According to the Telegraph’s Ambrose Evans-Pritchard, “the US is scrambling to head off a Greek pipeline deal with Russia, fearing a disastrous change in the strategic balance of the Eastern Mediterranean as Greece’s radical-Left government drifts into the Kremlin’s orbit.

 Ernest Moniz, the US Energy Secretary, said his country is pushing for an alternative gas pipeline from Azerbaijan that would help break the stranglehold that Russian state-controlled firm Gazprom has on European markets.

“Diversified supplies are important and we strongly support the ‘Southern Corridor’ to bring Caspian gas to Europe,” he told a group of reporters on the margins of CERAWeek oil and gas forum in Houston. He insisted that it was vital to uphold “collective energy security” in Europe.

The concern is that Syriza’s flirtation with Moscow goes beyond normal diplomacy and may evolve over time into a strategic shift, causing Nato’s Eastern flank to unravel, and dooming any chance of maintaining a united EU stance against Mr Putin.

The Greeks know this. They seem determined to extract the maximum political leverage from the new Cold War.

The concern is that Syriza’s flirtation with Moscow goes beyond normal diplomacy and may evolve over time into a strategic shift, causing Nato’s Eastern flank to unravel, and dooming any chance of maintaining a united EU stance against Mr Putin.

The Greeks know this. They seem determined to extract the maximum political leverage from the new Cold War.

How this all plays out is still unclear with constantly moving pieces and negotiations in flux, although with Greece having run out of money and forced to impose soft capital controls, two things are certain: a conclusion will have to be reached soon and ii) should Greece complete its pivot toward Russia, everything in Europe will change, and in this case we wholeheartedly agree with the Greek finmin’s assessment that “anyone who pretends they know what would happen the day we’ll be pushed over the cliff is talking nonsense.”

References:

http://www.zerohedge.com/news/2015-04-23/greek-bank-will-write-%E2%82%AC20000-debt-poverty-stricken-borrowers-greece-uses-russian-piv

Liked it? Take a second to support The Duran on Patreon!

35
Leave a Reply

avatar
35 Comment threads
0 Thread replies
0 Followers
 
Most reacted comment
Hottest comment thread
1 Comment authors
Trust Loan Firm Recent comment authors
  Subscribe  
newest oldest most voted
Notify of
trackback

The Slave of the Husband

Trying to get forward to finding out extra from you afterward!…

trackback

The Silent Shard

This will likely be very handy for some within your job opportunities I want to will not only with my blogging site but

trackback

Third Flower

My spouse and i happen to be now delighted that Albert could carry out his scientific studies on account of the concepts he had by way of your web page. It truly is every so often perplexing to just generally be giving freely steps which some people co…

trackback

Souls in the Waves

Great Early morning, I just stopped in to visit your site and thought I’d say I enjoyed myself.

trackback

Third Flower

My spouse and that i are already now delighted that Albert could execute his research due to the thoughts he had by way of your website. It really is now and again perplexing to only always be giving freely ways which a number of people might have been…

trackback

Souls in the Waves

Great Morning, I just stopped in to go to your website and thought I’d say I enjoyed myself.

trackback

The Slave of the Husband

Trying to get forward to learning extra from you afterward!…

trackback

The Absent Game

Involving me and my husband we’ve owned far more MP3 players over the years than I can count, such as Sansas, iRivers, iPods (basic & touch), the Ibiza Rhapsody, etc. But, the last few several years I’ve settled down to one line of players.

trackback

The Slave of the Husband

Trying to get in advance to studying extra from you afterward!…

trackback

The Ships’s Voyages

I believe technology just makes it even worse. Now there is a channel to never ever care, now there wouldn’t become a prospect for them to find out.

trackback

The Ships’s Voyages

I feel engineering just causes it to be even worse. Now there is a channel to hardly ever care, now there will not be considered a opportunity for them to find.

trackback

The Birch of the Shadow

I believe there may possibly become a handful of duplicates, but an exceedingly useful list! I’ve tweeted this. A lot of thanks for sharing!

trackback

Healing’s Dragon

to locate troubles to further improve my web-site!I suppose its okay to help make use of a few of your respective ideas!!

trackback

The Ships’s Voyages

I think technological know-how just causes it to be worse. Now there’s a channel to by no means care, now there is not going to become a likelihood for them to find out.

trackback

The Absent Game

Involving me and my husband we have owned more MP3 players over the years than I can count, like Sansas, iRivers, iPods (classic & touch), the Ibiza Rhapsody, etc. But, the last few decades I’ve settled down to one line of players.

trackback

The Slave of the Husband

Trying to find forward to studying extra from you afterward!…

trackback

The Ships’s Voyages

I feel technological innovation just causes it to be even worse. Now there is a channel to never ever care, now there will not likely become a prospect for them to find.

trackback

Whispering Misty

So sorry you are going to skip the workshop!

trackback

Third Flower

My spouse and i happen to be now delighted that Albert could execute his scientific studies as a consequence of the suggestions he had through your web page. It is actually once in a while perplexing to simply normally be giving freely methods which a…

trackback

The Birch of the Shadow

I think there might become a handful of duplicates, but an exceedingly helpful listing! I have tweeted this. Quite a few thanks for sharing!

trackback

The Birch of the Shadow

I think there may perhaps be considered a couple of duplicates, but an exceedingly handy listing! I’ve tweeted this. A lot of thanks for sharing!

trackback

Woman of Alien

Best perform you have done, this great site is basically cool with wonderful data. Time is God’s strategy for keeping almost everything from going on at the same time.

trackback

The Birch of the Shadow

I think there may possibly become a number of duplicates, but an exceedingly useful list! I’ve tweeted this. Numerous thanks for sharing!

trackback

Woman of Alien

Fantastic perform you may have done, this site is admittedly awesome with great details. Time is God’s way of maintaining every little thing from going on without delay.

trackback

Whispering Misty

So sorry you can skip the workshop!

trackback

ccn2785xdnwdc5bwedsj4wsndb

[…]Here are a number of the web sites we suggest for our visitors[…]

trackback

xcn5bsn5bvtb7sdn5cnvbttecc

[…]here are some links to web pages that we link to since we believe they’re really worth visiting[…]

trackback

Title

[…]one of our guests lately encouraged the following website[…]

trackback

Title

[…]although sites we backlink to beneath are considerably not related to ours, we feel they may be actually really worth a go through, so possess a look[…]

trackback

Title

[…]Wonderful story, reckoned we could combine some unrelated data, nonetheless truly worth taking a search, whoa did 1 learn about Mid East has got much more problerms too […]

trackback

Title

[…]Here are a number of the web sites we advocate for our visitors[…]

trackback

Title

[…]just beneath, are numerous completely not associated websites to ours, having said that, they’re surely really worth going over[…]

trackback

Title

[…]here are some links to internet sites that we link to mainly because we consider they are worth visiting[…]

trackback

Title

[…]please pay a visit to the web sites we stick to, which includes this a single, because it represents our picks through the web[…]

Trust Loan Firm
Guest
Trust Loan Firm

HELLO

DO YOU NEED A BUSINESS LOAN?

We are registered private loan lender from new Jersey United State of America, We offer loan at low interest rate of 3% and at a minimum amount of 10,000 and Maximum of 10,000,000 in any currency.

OUR AREAS OF PERFECTION INCLUDES:
Business Loan,
Government Loan Contract,
Intellectual Property Loan;
Land Uses and Zoning Loan;
Real Estate Loan,
Taxation Loan;
Trust International Loan,
Health and Health Care Loan;
Legal Documentations For Transfer of Funds,
Estate Planning Loan,
Banking and Finance Loan,
Adoption Loan,
Alternate Dispute Resolution Loan,
Bankruptcy Loan,
Social Security – Disability Loan,
Probate and Estate Loan.

CONTACT INFO
Email: [email protected]

Copyright DRN Media PLC 2019. RSS: http://theduran.com/feed

Scroll To Top