The ECB is understood to be considering setting internal yield band targets under a new bond-buying programme to allow it to keep its strategy shielded and avoid speculators trying to cash in, central bank sources told Reuters. Such a strategy would bring down yields, which translate into the interest rates countries can borrow at, without traders knowing where the ECB will stop buying. Samaras, who arrived in Berlin with his foreign secretary and finance minister, has spent much of the week arguing that his country should have more time beyond the mid-2014 deadline to complete reforms that are a condition of it continuing to receive bailout loans. Without the help, Greece would be forced into a chaotic default on its debts and could be forced out of the eurozone.
Leading German politicians have voiced deep scepticism about granting Greece any concessions. Merkel and Hollande, meeting a day before Samaras came to Berlin, put the onus squarely on Greece to fulfill its pledges.
Greece has faltered in the speed and effectiveness of implementing the reforms irritating creditors, notably Germany, which is the single largest contributor to its two bailout packages, totalling €240bn.
Merkel said: "To win back confidence, we must fulfill expectations, and so I made clear in the talks that we of course expect from Greece that the commitments that were made be implemented, that deeds follow words.
"But fulfilling expectations also means that Greece can rightly expect from Germany that we do not pass premature judgments." Merkel added that Germany needed to wait for the debt inspectors' report.
The Athens coalition government has said it was considering passing a law blocking politicians from hiring relatives as staff after a series of corruption scandals. (source guardian.uk)
1 comment:
A friend working at a Spanish bank in Valancia tells me that since large cash transactions have effectively been banned, more and more people are simply going to the bank and exchanging worthless euro vouchers for a real currency, mainly US$ of course but a lot of UK £ as they still get spent a lot in Spain, and using the foreign currency for bigger cash purchases. Even things like paying a buider or buying a second hand car from a dealer or privatly.
And of course the recipient is delighted as he can immediatly send it on holiday to a foreign account.
Saves on VAT saves on tax and gets the Spaniards a real currency.
Expect far far more of this as accounts are emptied to not just send overseas but to be used to convert to other currencies to buy things at home.
Its what happens when you foist a a crummy useless utterly failed coupon like the euro, which might as well have been peeled from the back of a packet of discount tampons or found in the bottom of a box of cereal, on people.
The sensible ones use them to but condoms and local groceries and then change the rest into something that will keep its value and they can rest easy instead of wondering if the bulging eyed sweating fat criminal mafia in Brussels and the ECB are going to print into Zimbabwean proportions to support thier filthy criminal Ponzi scam
So if by any chance you decide to go to S[pain for a holiday, you will find very very willing takers for your sterling, and you get a better rate than going down to your local bank and changing your half good pounds to useless euro trash coupons.
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