The Hellenic Radio (ERA): News in English, 10-10-11

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From: The Hellenic Radio (ERA) <www.ert.gr/>

CONTENTS

[01] Juncker's Spokesman Clarifying Statement

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Junker's spokesman, in a clarifying written statement on Monday, refers to the head of Eurogroup statements about Europeans being aware of the situation in Greece and a Greek Prime-minister having told him he governed a corrupt country. Nevertheless, Jean Claude Junker statements continue sparking anger between the ruling Socialist party and main opposition ND party.

Junker Clarifications on Corruption

In his clarifying written statement, the spokesman for Eurogroup head, Guy Schuller says that Jean Calude Junker said at a press conference on the sidelines of International Monetary Fund annual meetings in Washington: "when many years ago data on Greece's economy competitiveness indicated the country was in a very difficult economic and fiscal situation, all in Europe were aware that Greece was facing a deep corruption problem".

However, Mr. Juncker , Eurogroup head could not have said publicly what he knew.

Referring to Mr. Juncker statement " a Greek prime-minister had told him he governed a corrupt country", Mr. Schuller said that in his effort to highlight the change in Greek authorities handling of the crisis, Mr. Juncker referred to the statement by Prime-minister Papandreou, who shortly after 2009 elections when the dimension of Greece's crisis in public finances was clear, Mr. Papandreou said Greece had a serious corruption problem".

Amadeu Altafaz, spokesman for EU Commissioner for Monetary Affairs Olli Rehn, said "the EU had several times in the past sounded the bell on the situation of Greece's economy" .

"We did not discover what was happening in Greece's economy in February, 2010", Mr. Altafaz said and added that former EU Commissioner for Monetary Affairs JoaquinAlmunia had repeatedly warned about the fiscal situation and the statistical data in Greece.

New Row

Political row, however, is growing after Mr. Juncker clarifications. The government has categorically dismissed that the Greek prim-minister spoke of corrupt Greece with Mr. Juncker. The government spokesman, George Petalotis stressed that Juncker's spokesman clarifying statement did not refer to personal talks with Mr. Papandreou but to a public statement of his.

Mr. Petalotis launched a strong attack against ND party underlining: "Mr. Papandreou has never spoken of a corrupty country with Mr. Juncker. The government is fighting corruption from the very first moment, on the contrary the ND is trying to bring talks to theoretical huntings to avoid its huge responsibilities instead of apologizing".

Sources: ÍÅÔ - ÍÅÔ 105.9 - ÁNA/ÌPA

News item: 41848

[02] PM's Message of Optimism

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The government has averted the country's bankruptcy and Greece is moving ahead. From Corfu, Prime-minister George Papandreou sent a message of optimism underlining that it is internally recognized that the fiscal purging program is bearing fruit. He also blamed former ND party rulings for having made criminal selections, as he said they modified data on state deficit. "Each day was a wasted day under Karamanlis ruling", Mr. Papandreou said.

Sources: ÍÅÔ - ÍÅÔ 105.8 -ÁNA/ÌPA

News item: 41742

[03] IMF Can Extend Time for Repayment of Loan

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After his meeting with Greek Finance Minister George Papakonstantinou, Dominique Straus Khan, chief of International Monetary Fund,backed Greece's fiscal program. Mr. Khan, in an interview with Bloomberg, left open possibility to give Greece more time to repay its 110 billion euro rescue loan provided other European countries agreed. In the meantime, on Tuesday the Finance Ministry will issue 6-month state bonds to raise 900 million euros.

If EU Agrees

Dominique Straus Khan statement to Bloomberg about possibility of IMF giving more time to Greece to repay its loan has given rise to many scenarios. A necessary term for extension of repayment is the agreement of European states which have given the major part of the loan. Although there is no specific plan for such a move the IMF can:

Extend repay period Replace short term loans with long term loans Agreement for a new loan when the current loan program expires

Germany, according to Bloomberg, objects to extension of period for the repayment of 110 billion euros rescue package. Athens says that targets will be achieved and there will not be need for extension.

Finance Minister George Papakonstantinou, in an interview with CNN, forecast that state deficit will drop to 8% of GNP till the end of 2010 and stressed that drop in spreads indicates that Greece is regaining its credibility.

Eurostat Delegation in Athens

In the meantime, a delegation from the European Statistics Service has arrived in Athens to collect data in order to come with a final determination of deficit and state debt for the period 2006-2009.

Government spokesman said that any upwards revision2006-2009 would not have an impact on the stability program as we are meeting our targets. He ruled out possibility for revision of Memorandum even if there is upward revision.

Sources: ÍÅÔ - ÍÅÔ 105.8 - ÁNA/ÌPA News item: 41852

[04] FinMin: Greece Regaining its Credibility

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"We have made a powerful start, we are regaining our credibility, however, nothing has been won yet", Finance Minister George Papakonstantinou told Greek and foreign reporters. Mr. Papakonstantinou spoke of an evident change in Greece's picture and forecast return to markets in 2011. "Greece is in the right path", said the IMF chief Dominique Straus Khan who met Greek Finance Minister.

Dominique Straus Khan: Greece on the Right Path

"Greek government and mainly Greek people achievements are amazing", said International Monetary Fund chief Dominique Straus Khan. He added that purging program will admit Greece into the road of development.

Dominique Straus Khan underlined that Greece is a very good example for countries with deficit problems because as he said when it is necessary a state can make all efforts required to return into the right path.

A top analyst at Morgan Stanley also made positive remarks about Greece's progress.

Source: ÁNA - ÌPA

News item: 41735

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