Euler Hermes, which is majority owned by the German insurer Allianz, is acting on fears that the stricken eurozone member may be forced out of the single currency, limiting the ability of Greek importers to pay their bills. “Euler Hermes has decided no longer to cover deliveries to Greece for the foreseeable future,” a spokesman said. The company said existing contracts would be honoured but no new Greek business would be underwritten. The insurer said it would reconsider its decision “as soon as the situation improves.”
The move reflects the widely-held view that Greece is likely to exit the eurozone, after politicians failed to form a coalition government, prompting a second election on June 17. The fear is that Greece will elect politicians unwilling to press ahead with the scale of austerity demanded by fellow eurozone members and the International Monetary Fund as a pre-requisite for continued bail-out funds, hastening an exit from the single currency.,,,AND THIS AMOUNTS TO BLACKMAIL ON THE PART OF GERMANY (The today's IVth. Reich)
5 comments:
Greece has fallen and is falling further, now Spain is on the slide. Of course Cyprus will be included in the mix of Euro-zone crisis states.
Lets hope something can be done to stop a complete blowout.
"Guy Mandy, credit strategist at Nomura,“They need to weigh up events on a grander scale, stop worrying about moral hazard, and do the job of a central bank,” he said. "
They cannot. They are expressly forbidden from doing what is required as they do not have the tools i.e. state wide bonds with shared liability.
Funny how the Europhiles are quiet when the real stats show the Eurosceptics have been right and also its going in the direction.
In the above article it says Germany is trying to force Spain to tap IMF because Germany wants it all, to have a strong currency benefiting its exports, whilst ruling the roost but not being accountable for anything. This is another reason why the Euro simply cannot work in present form.
And absolutely NO should be the response from the IMF. They could well lose money with Greece and this will be down to the French who have headed up the IMF (Lagarde and that weirdo guy before her). France was the country that sponsored Greece into the Euro and allowed it to go unchecked as it cooked its books.
France continues to be one of the big failings of the European Union. If France were cut away the world would be a fantastic place!
Let the banks go bust, default on loans, fire the public sector employees and re-hire as really required and at affordable costs, introduce a gold-backed peseta - and everything will be fine in two-three years.
Well this the big one,too big to sort out,make sure you have your physical metal close,where we go from here who knows but true democracy and freedom will cease to exist until the people demand it back.Get your cash while the banks are still open.
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