Troika happy with progress on Greek cuts

The infamous Troika from the European Central Bank, the European Commission and the IMF are in Greece reviewing the program and say that the government has made “great progress” in implementing the 11.5 billion additional cuts the Troika is demanding.  While the government has their idea of where the cuts would come from, the Troika handed the government their own “suggestions”

Following the government meeting with the troika on Sunday, Syriza made a statement saying that “the supposed ‘tough’ negotiations never existed and indeed were never in the intentions of the coalition government… which, in smooth cooperation and co-responsibility with the troika, continues on the path of faithful and strict implementation of the catastrophic Memorandum, thus sealing the crime against society and the economy.”

Meanwhile thousands of Greek businesses are facing  bankruptcy because they are unable to service bank loans and liabilities to suppliers as the economy collapses According to Hellastat, which processed the balance sheets of 52,000 enterprises between 2002 and 2011, about 50 percent of operating profits today go to pay banks and suppliers, compared to about 30 percent before 2008.

In a sample of 15,000 firms of all sizes and activities, aggregate sales fell 4.66 billion euros in 2011. Within four years, businesses lost 25 percent of turnover and 50 percent of profits.

“It is important to stress that among small and mid-sized enterprises, the rate of those with access to bank funding does not exceed 20 percent,” said Hellastat CEO Panos Michalopoulos.

This entry was posted in Austerity & Bank Bailouts, Glass Steagall and tagged , , , , , , , , , , , , , . Bookmark the permalink.

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