Greek Finance Minister Yiorgos Papakonstantinou will be required to explain the reasons of the new revision of state deficit (2010) in the extraordinary meeting of ministers in Budapest later this week.
Eurogroup meets in order to initiate decisions, which hang at poise since the European Summit in late March, regarding the financing of Eurozone’s temporary rescue fund (EFSF). However, diplomatic sources note that the situation in Portugal will be at the centre of attention, while the implementing of Memorandum of Understanding in Greece and the new deficit gap will follow in the agenda.
According to sources, Portugal will be forced to seek for EFSF help, although it appears able to cover its €4.3b loans, as the yield of the five-year bond exceeds 9.5%. Irish request for lowering of its loan interest rates and the already decided extension of repayment period and the decrease of interest rates for Greece are not included in the agenda.
On the contrary, Eurogroup is expected to discuss at length European Central Bank’s intention to increase its interest rates on Thursday and the consequences of this movement.
Additionally, it will seek "explanations" from Portugal in order to enable EFSF move early if necessary in the coming weeks.
Eurogroup is concerned as the 2010 deficit of Greece appears to be larger than estimated in the previous revision (9.4% of GDP). Hellenic Statistical Authority and Eurostat bring in a new upward revision of deficit, which may lead to additional revenue measures besides the revised Memorandum of Understanding.
Eurogroup meets in order to initiate decisions, which hang at poise since the European Summit in late March, regarding the financing of Eurozone’s temporary rescue fund (EFSF). However, diplomatic sources note that the situation in Portugal will be at the centre of attention, while the implementing of Memorandum of Understanding in Greece and the new deficit gap will follow in the agenda.
According to sources, Portugal will be forced to seek for EFSF help, although it appears able to cover its €4.3b loans, as the yield of the five-year bond exceeds 9.5%. Irish request for lowering of its loan interest rates and the already decided extension of repayment period and the decrease of interest rates for Greece are not included in the agenda.
On the contrary, Eurogroup is expected to discuss at length European Central Bank’s intention to increase its interest rates on Thursday and the consequences of this movement.
Additionally, it will seek "explanations" from Portugal in order to enable EFSF move early if necessary in the coming weeks.
Eurogroup is concerned as the 2010 deficit of Greece appears to be larger than estimated in the previous revision (9.4% of GDP). Hellenic Statistical Authority and Eurostat bring in a new upward revision of deficit, which may lead to additional revenue measures besides the revised Memorandum of Understanding.
