So Far 1.3x Greeces Have Been Bailed Out... And More Is Coming

Submitted by Tyler Durden on 08/22/2013 09:08 -0400

• Foreclosures
 
• Funding Gap
 
• Greece
 
• Gross Domestic Product
 
• International Monetary Fund
 
• New Normal
• Recession

Schaeuble and Merkel have very recently confirmed what was leaked a month ago - that Greece will likely get yet another 'helping hand' aid program. Some have noted that this may be financed using EU funds instead of additional loans from EU-area countries (or the IMF) yet Merkel's comments (perhaps playing to her electioneering needs) appeared to dismiss this - prompting talk of a 'bail-in' based on the new normal 'template' applied to Cyprus.

Greece has so far received two bailout packages totaling EUR240 billion (with about EUR22 billion still to be released) which is 130% of Greece's GDP (which stands at EUR186.2 billion) and while the third package appears smaller (for now) at EUR10.9 billion (based on IMF funding gap forecasts), this covers only the period through 2015 (and we know how accurate the IMF has been in the past with its hockey-sticks).

Greece remains  mired in the sixth year of a recession with more than 6 out of 10 young people unemployed.

...and things are going so great (and looking up) that Samaras and Venizelos have decided to freeze all foreclosures on the lower- and middle-class...

...

"The primary residences of socially weak citizens and whoever is demonstrably unable to meet loan payments due to the crisis will be absolutely protected," Samaras said. "That is not subject to negotiation. Period."

...

The premier added that the government was studying a framework of reforms that would secure the vulnerable but would also prohibit abusive behavior and seek to protect mortgage credit.

Leaving the Maximos Mansion, Venizelos was asked by reporters whether an agreement had been reached on the issue of foreclosures. "I think so, yes,"

...

"I have said repeatedly that the primary home of the poor and middle-level household, which is suffering due to the crisis, is and will remain absolutely protected," Venizelos said.

He referred to a small minority of "crafty individuals" hiding behind those who are genuinely in need, adding that the chief issue is not that of foreclosures but of restoring the ability of banks to offer mortgage credit.

We are sure they will just 'nail' that GDP forecast (and CNBC will celebrate it)...

Source: Bloomberg Briefs

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