Athens News Agency: Daily News Bulletin in English, 15-07-17

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From: The Athens News Agency at <http://www.ana.gr/>

CONTENTS

[01] Eurogroup approves launch of talks on three-year ESM bailout for Greece

[02] Eurogroup approved 7 bln euros bridge loan to Greece, says Bloomberg

[03] PM calls meeting with close aides at Maximos Mansion; speculation that reshuffle is pending

[04] No cabinet reshuffle announcement on Thursday, say gov't sources

[05] Dragasakis reply to renewed Schaeuble 'Grexit' references on Facebook

[06] Interior Minister Voutsis sees snap elections in autumn

[07] Prod. Reconstruction minister Lafazanis: 'We support the government wholeheartedly, but we disagree with memorandums'

[08] Alt. Def. Minister Isichos says his resignation is 'at PM's disposal'

[09] Independent Greeks leader in Parliament: Negotiations led to 'capitulation, but not to surrender'

[10] Potami says SYRIZA must 'end absurdity' of MPs being both the government and the opposition

[11] The omnibus bill 'destroys Greek farmers with unbearable taxes', Golden Dawn leader Michaloliakos tells Parliament

[12] Greece welcomes deal on Iran's nuclear programme

[13] ECB's Draghi hints that Greece may qualify for QE once in programme

[14] Draghi confident Greece will make ECB repayment in July

[15] ECB raises ELA for Greek banks by 900 million euros

[16] Banks to open Monday, banking sources say

[17] Greek banks to stay closed until July 19, says finance ministry

[18] Piraeus Bank's head says Greece needs a new start

[19] Federation of Hellenic Enterprises expects gradual loosening of liquidity conditions in the country

[20] Bank transaction commission approves applications worth 819.9 mln euros

[21] Aris Xenofos appointed new CEO in Hellenic Financial Stability Fund

[22] Greek budget cash deficit down in H1

[23] National Bank postpones Finansbank's share offer

[24] Blaze burning low vegetation in northwestern Peloponnese

[25] Fair on Friday

[26] The Thursday edition of Athens' dailies at a glance Politics

[01] Eurogroup approves launch of talks on three-year ESM bailout for Greece

In a conference call session on Thursday, Eurogroup finance ministers approved the launch of talks on a three-year bailout for Greece from the European Stability Mechanism (ESM).

"...we reached today a decision to grant in principle a three-year ESM stability support to Greece, subject to the completion of relevant national procedures," a Eurogroup statement said, welcoming the adoption by the Greek Parliament of a raft of austerity measures and prior actions demanded by Greece's EU partners as a "show of good faith" in a post-midnight vote held early on Thursday morning.

Eurozone finance ministers said their decision was based on a "positive assessment" by the institutions that Greece had promptly met demands and included the July 12 Euro Summit statement in the preamble to the implementing law.

It said that talks on negotiating a new Memorandum of Understanding (MoU) with Greece will begin once the bailout once "relevant national procedures" are complete and a formal decision made by the ESM board of governors.

"The Eurogroup calls on the Greek authorities to swiftly adopt the second set of measures by 22 July as foreseen in the Euro Summit statement, and update the legislation related to the first set of measures consistent with the recommendations made by the institutions in their compliance report," the statement concluded.

[02] Eurogroup approved 7 bln euros bridge loan to Greece, says Bloomberg

The decision is expected to be announced on Friday after the technical details are completed and the national parliaments vote in favour of Athens' agreement with its creditors.

[03] PM calls meeting with close aides at Maximos Mansion; speculation that reshuffle is pending

Among those at the prime minister's office are government Vice-President Yiannis Dragasakis, Finance Minister Euclid Tsakalotos, Minister of State Alekos Flambouraris, SYRIZA Parliamentary Group secretary Christos Mantas and the party's Parliamentary spokesman Nikos Filis.

The chances of at least a mini-reshuffle are almost certain, given that Nadia Valavani has already resigned as alternate finance minister, while Productive Reconstruction, Energy and Environment Minister Panagiotis Lafazanis, Alternate Social Insurance Minister Dimitris Stratoulis and Alternate Defence Minister Kostas Isichos have all "rebelled" against the government line and voted 'no' to measures demanded by Greece's creditors for a new bailout to keep Greece's economy afloat. The time such an initiative might be announced has not yet been made specific.

[04] No cabinet reshuffle announcement on Thursday, say gov't sources

[05] Dragasakis reply to renewed Schaeuble 'Grexit' references on Facebook

"He saying, or rather letting it be understood, 'exit the eurozone for a while and escape some of your debts'.

That part is the 'carrot' but behind it comes the 'stick'. The 'stick' in this case is official default, harsh memorandums of unlimited duration, resort to the 'Paris Club' and endless court battles with a multitude of creditors," Dragasakis said.

He also noted that there now appeared to be general agreement among all parties involved that Greece's debt was not sustainable, which had been the Greek government's position all along.

"Within the existing framework there are technical options that could relieve the Greek economy and society of the excessive debt burden, putting into a growth trajectory. We will seek to exploit these fully, methodically and with persistence, to defend the long-term interests of Greece and Europe," Dragasakis added.

[06] Interior Minister Voutsis sees snap elections in autumn

"Elections are very possible, but this will be the result of a comprehensive - and not just from the government - approach towards the general developments," the minister said.

He noted that there's an issue of "political and institutional commitment which concerns restoring normalcy in the economy" but also a problem of political ethics. "The prime minister signed a deal with which we disagree - as he does - and these things have to be implemented."

People must be consulted again once things calm down, SYRIZA MEP Papadimoulis says

Following the split in SYRIZA during Thursday's post-midnight vote on the prior actions demanded by Greece's creditors, the people would eventually have to be consulted once again about what they want, SYRIZA MEP Dimitris Papadimoulis said.

"Once we have established some stability, some normality, the people must speak again with safety, at a distance from the present, but upon clear proposals," he said on Alpha 989 radio station.

"The party leading the country cannot have a [dual] agenda, both the euro as its official programme and the drachma. It's either one or the other," he stressed.

The "glass had shattered" in SYRIZA's Parliamentary Group during Thursday morning's vote, Papadimoulis said and added:

"A significant number of my comrades, my friends, voted against what the majority, the government and the prime minister asked for because they have a drachma agenda."

[07] Prod. Reconstruction minister Lafazanis: 'We support the government wholeheartedly, but we disagree with memorandums'

He was speaking of the 32 SYRIZA deputies who were among 64 voting it down. The legislation passed with 229 votes over a total of 299, with support by coalition partners SYRIZA and Independent Greeks (ANEL), the main opposition New Democracy, and opposition parties To Potami and PASOK. At least three cabinet members, including Lafazanis, voted against it, as did former Finance minister Yanis Varoufakis, while alternate Finance minister Nadia Valavani had submitted her resignation on Monday (her letter of resignation was released on Wednesday).

"We support the government, and those of us who said 'No' support the efforts leading Greece to exit the crisis with its head held high and [with] social justice," Lafazanis said after the vote, adding that "we are deputies of this government. We support it wholeheartedly, we are the heart and soul of SYRIZA, we support the party, we support the party in the government, we support the prime minister - we do not support the memorandum."

He added that SYRIZA was united and the backbone of a government that will follow a progressive course to exit the crisis. Asked whether he would resign if Prime Minister Alexis Tsipras requested it, Lafazanis, a leading member of his cabinet, said that it is the premier's prerogative to set the cabinet's composition. Tsipras is the prime minister by the will of the people, he stressed. He also added that the government has no plans for elections, "we have an elected government that is strong and supported by all of us."

[08] Alt. Def. Minister Isichos says his resignation is 'at PM's disposal'

Speaking on the private television channel ANT1, he said that SYRIZA's Parliamentary Group has the "self-awareness, experience and culture to contain differentness" at a crucial time for the country and for the people.

"In this sense, I say that I am at the prime minister's disposal as regards my place in the government but it is self-evident that this government has my whole-hearted support in following the programme that is compatible with its commitments."

He underlined that Tsipras' government can count on his vote of confidence whenever this is needed, while noting that an MP's conscience "does not only express himself but also the collective conscience of all those that have fought against the memorandums all these years."

[09] Independent Greeks leader in Parliament: Negotiations led to 'capitulation, but not to surrender'

In an intervention, Kammenos told Parliament that the bill is a product of blackmail and coup but stressed that if it is not ratified, there will be no hope for either Greece or Europe. "We are being blackmailed," he said, and said he was aware that many deputies were called to vote against their conscience. Calling the results of a "capitulation", he nevertheless called on deputies to show by example that there are peoples who may capitulate, but do not surrender.

[10] Potami says SYRIZA must 'end absurdity' of MPs being both the government and the opposition

"For the first time possibly in world history we have ministers saying 'we'll keep our positions, but we'll vote against the prime minister's proposals'," the party said in a statement.

"This brazen and unethical attitude will not be accepted by society ... We cannot have half of SYRIZA in government and the other half in the opposition," it added.

Potami noted that the danger of exiting the Eurozone has not been overcome yet, so the plan must be prevented.

It also said party leader Stavros Theodorakis had a telephone conversation with German Vice-Chancellor Sigmar Gabriel with whom he discussed the result of the parliamentary vote on Wednesday and asked him to do all he can to secure the widest possible majority for the Greek deal in the German parliament.

Gabriel expressed his certainty that the majority of German lawmakers will back the deal.

[11] The omnibus bill 'destroys Greek farmers with unbearable taxes', Golden Dawn leader Michaloliakos tells Parliament

The party leader charged the government with betraying the will of the Greek people by turning the "proud No" to a "subservient Yes" and called the bill "the new nation-slaying Memorandum of the Left" which will allow the selloff of Greek national wealth, utilities, ports, airports, natural gas and hydrocarbons through a foundation based in Luxembourg. The memorandum measures will bring greater poverty to Greeks as thousands of offshore companies in Greece and the "Lagarde list" of large-scale Greek depositors abroad remain unscathed, he said.

[12] Greece welcomes deal on Iran's nuclear programme

"The long talks of the P5+1 representatives and Iran led to an historic agreement that is a decisive contribution to the international efforts for nuclear disarmament and strengthens international and regional security," the foreign ministry said in a statement.

"Greece congratulates all of the involved parties on the patience and spirit of good will they showed in the negotiations for the achievement of the solution, the consistent implementation of which will lead to the lifting of the sanctions on Iran," it added.

Financial News

[13] ECB's Draghi hints that Greece may qualify for QE once in programme

He also joined the other two creditor institutions, the European Commission and International Monetary Fund (IMF) in saying that Greece needs significant debt restructuring or relief:

"It's uncontroversial that debt relief is necessary and I think that nobody has ever disputed that. The issue is what is the best form of debt relief within our framework, within our legal institutional framework.

I think we should focus on this point in the coming weeks," he said.

Speaking to the press, Draghi said that the ECB was working on the assumption that Greece remains in the eurozone, regarding his decision to raise the ceiling on Emergency Liquidity Assistance (ELA) for Greek banks by 900 million euros.

He was strongly critical of those pushing for a reduction in ELA, saying those exerting those pressures did not respect the ECB's mandate as Europe's central bank and adding that neither the ECB nor the Bank of Greece "can take decisions as to which country will be part of the eurozone."

Asked whether banks in Greece will open, he admitted that their closure was damaging Greece's economy but noted that capital controls were necessary to prevent a bank run.

[14] Draghi confident Greece will make ECB repayment in July

[15] ECB raises ELA for Greek banks by 900 million euros

[16] Banks to open Monday, banking sources say

One key difference, however, is that account holders will be able to "carry over" their withdrawal allowance for at least one or two days. For example, if someone does not withdraw any money on one day, they will be able to withdraw up to 120 euros on the following day, in order to reduce queues at bank branches and ATMs.

[17] Greek banks to stay closed until July 19, says finance ministry

The bank holiday was first announced on June 28, with a legislative act.

[18] Piraeus Bank's head says Greece needs a new start

The Greek banker stressed the need to lay the foundations for the modernization and recovery of the economy and noted that focus must be given to investments and upgrading growth and basically dealing with unemployment. "We have to offer a prospect to the country's youth and brains. Today, all Greeks and first of all the business community are called to declare present in the restart of the economy".

Meanwhile, the European Central Bank's managing board will meet later today to decide on whether to raise or not liquidity for Greek banks through the Emergency Liquidity Assistance mechanism, while the Eurogroup will hold a teleconference meeting to agree on a 7.0 billion euros bridge loan to Greece.

[19] Federation of Hellenic Enterprises expects gradual loosening of liquidity conditions in the country

In a weekly economic bulletin, the Federation noted that "although a gradual loosening of liquidity conditions was expected in the next few days, in line with the implementation of prior actions by the government, Greek enterprises are already facing acute problems with production and distribution of products". The Federation called for a return to normality the soonest possible and underlined that on a political level, both in Greece and abroad, the climate was tense and that delicate handling was necessary to avoid any accidents now that a minimum consensus has been reached on a European level towards the country's course. "As bad as an agreement may be, nothing compares with the alternative of putting the country outside the European family. We no longer have any other choice, while there is not going to be a fourth chance if we lose the opportunity we have today," the Federation said.

It noted, however, the the outlook was good to rebuild the country, by promoting structural changes, combat tax evasion and corruption and to create the necessary reserves to reduce taxes and restore pensions again.

"If the government takes advantage of a wide parliamentary support and safeguards a rapid and efficient implementation of measures and a fair distribution of additional burden, the Greek economy could soon return to international markets," the bulletin said.

[20] Bank transaction commission approves applications worth 819.9 mln euros

The announcement said that the Commission examined 2,639 transaction applications, out of a total of 3,243 submitted and that 909 (34.4 pct) were approved.

Of the 819.9 million euros approved, 22.9 million were hospital bills, 59.8 million were transactions for food, raw materials and food packaging material and livestock feed. Another 195.8 million euros were transactions for the import of oil and energy and 291.9 million euros were bank transactions for other product and services.

[21] Aris Xenofos appointed new CEO in Hellenic Financial Stability Fund

Xenofos has worked as a high-ranking official in several fund management companies in Greece, central and eastern Europe, such as deputy general manager in Alpha Asset Management, chief executive in Eurobank Asset Management, chairman in Eurobank FMC Luxembourg and EFG Eurobank MFMC SAI in Romania.

[22] Greek budget cash deficit down in H1

The central bank, in a report, said that during this period, ordinary budget revenue amounted to 19.113 billion euros, compared to 21.912 billion in the corresponding period of last year. Revenue of 55 million euros regarding Securities Markets Programme (SMP) income transfers from the Bank of Greece is excluded. Ordinary budget expenditure amounted to 21.470 billion euros, from 24.151 billion in January-June 2014. The primary surplus was 1.3 billion euros in the first half, almost unchanged from the same period last year (1.36 billion).

[23] National Bank postpones Finansbank's share offer

General News

[24] Blaze burning low vegetation in northwestern Peloponnese

Authorities have dispatched 13 fire-fighting vehicles, 30 fire-fighters, two aircraft and two water lorries to the area near the village of Greka, in Aegialia.

Weather forecast

[25] Fair on Friday

[26] The Thursday edition of Athens' dailies at a glance

EFIMERIDA TON SYNTAKTON: Tsipras continues wounded until further notice.

ELEFTHEROS TYPOS: Yes to the agreement, no to Tsipras.

ESTIA: Agreement with Greece's partners voted in parliament.

ETHNOS: Tsipras' moves after the rift (in SYRIZA)

IMERISSIA: Yes, with heavy cost

KATHIMERINI: 229 yes and rift in SYRIZA.

NAFTEMPORIKI: 229 yes to the measures.

RIZOSPASTIS: Do not give up! There is an alternative with popular struggle.

TA NEA: Clash in parliament, consensus to measures.

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