Tsipras: There is no fear for liquidity

Tsipras: There is no fear for liquidity

Athens, March 16, 2015/ Independent Balkan News Agency

By Spiros Sideris

Greek Prime Minister Alexis Tsipras had a meeting o Sunday at the Maximos Mansion with Finance Minister, Gianis Varoufakis and Deputy Minister of International Economic Relations, Euclid Tsakalotos.

Coming out of the Maximos Mansion Alexis Tsipras was asked if there is a problem with liquidity. “There is no fear” was the response of the Prime Minister.

Varoufakis reportedly informed Alexis Tsipras on developments around the negotiations and on how to close the financial gap of EUR 2 billion that was found by the technical teams of the institutions that remain in Athens.

The same information indicate that all aspects of financing were discussed before the crucial week that starts with Thursday’s Summit. Alexis Tsipras will, reportedly, be prepared to bring the question of funding and liquidity at the Summit.

Greek FinMin, in an interview on Alpha television, on Sunday, assured that the Greek government has not taken a single penny from the reserve of Pension funds and that it has secured the money to be paid to salaries and pensions. He added that it is negotiating to achieve a surplus of 1.5% for 2015.

To the question on the “EUR 2 billion ‘hole’ in revenue” the technical teams have reportedly found in their first investigations, Varoufakis said he was not aware any such thing. ‘There has been a shortage in revenue since the middle of 2014. The surplus the previous government was bragging about was half of what it was saying… We found an empty treasury”, said the Finance Minister.

Varoufakis assured that the Greek government will not sign new recessionary measures, emphasising that the first priority is the needs of the citizens. “There will be no increase in VAT in the islands, medicine and food”, he said.

No new recessionary measures will be taken, while the government assures there will be no problem paying salaries and pensions, stress sources from inside Maximos Mansion, commenting on publications that speak of risks for April.

The same sources indicate that the Greek government in its first month and a half of tenure has been faced with a difficult situation inherited by the Samaras government. We did not fall from the clouds. Everyone knew how fake the “success story” was, regarding the end of the Memoranda and the return to bond markets.

They add that “what the government can with absolute certainty assure the people is that there is absolutely no salary and pension payment problem, since all necessary measures have been taken to be paid normally.

Also, there is absolutely no way for further recessionary measures to be taken that would continue the absurdity of austerity, which so painstakingly and passionately the Samaras government honored”.

For all these reasons, the same sources note, the government has a plan and is taking initiatives to boost the liquidity of the Treasury (for arrears) that will give breath to an economy and a society that cannot take any more.

“Months before the elections the ominous predictions had started on what would happen to Greece with a government of social salvation. Foe a month and a half we have been refuting these scenarios in practice. This is what we will continue to do with determination and sobriety, loyal to the popular mandate that we have received”, the government sources conclude.