The Troika’s Policy in Greece: Rob the Greek people and give the money to private banks, the ECB, the IMF and the dominant States of the Eurozone
On
20 August 2018, the Greek government of Alexis Tsipras, the IMF and
the European leaders celebrated the end of the Third Memorandum.
On
this occasion, the major media and those in power spread the
following message: Greece has regained its freedom, its economy is
improving, unemployment is on the decline, Europe has lent Greece 300
billion and the Greeks will have to start repaying that debt in 2022
or in 2032.
The
main claims are completely unfounded as Greece remains under the
control of its creditors. In compliance with the accords that the
Alexis Tsipras government signed, the country must imperatively
achieve a primary budgetary surplus of 3.5% which will force it to
continue brutal policies of reduction of public spending in the
social sector and in investment. Contrary to the dominant message
that Greece will not begin to repay its debt until some time in the
future, it should be clearly understood that Greece has been repaying
considerable amounts constantly all along to the ECB, the IMF and to
private creditors, and this prevents it from responding to the needs
of its population.
by
Eric Toussaint
Part
20 - Balance of accounts with the ECB
The ECB
refused to participate in the 2012 debt restructuring and did not
agree to the €56.5 billion of Greek securities it held being
exchanged for securities with a face value reduced by 53%.
Since
then, it has demanded repayment of securities it bought below their
value between May 2010 and February 2012 at 100% of their value when
they reach maturity. This is how between 2012 and 2018, Greek
authorities paid about €43 billion in stock to the ECB and Eurozone
central banks, to which we must add interest that may amount to 12
billion or more. In addition to which some €13 billion still have
to be paid, related to securities bought in the context of the
2010-2012 SMP programme. To those 13 billion we have to add pending
interests.
The said
securities are to be repaid at specific dates (see the Wall Street
Journal Web site: “Greece’s Debt Due”). The schedule of
repayment to the ECB runs from 2019 to 2037. On the schedule
reproduced by the Wall Street Journal we can see, for instance, that
Greece will have to pay the ECB €3.75 billion on 19 July 2019 at an
interest rate of 6% and on 22 October 2019 it will have to pay €2
billion at a rate of 6.5%.
Let
us keep in mind that Greece redeems at 100% securities that the ECB
bought at around 75% of their value between 2010 and 2012, and that
the value of those securities should have been reduced by 53% if the
ECB had agreed to contribute to the 2012 restructuring.
Of
course if the ECB resumes its buying of Greek securities from private
banks, new repayments will have to be added.
It
was not enough for the ECB to dramatically deteriorate the Greek
people’s living conditions; it shamelessly accumulated odious
profits stolen from the Greek people.
We
must also remember that the ECB remits to the Eurozone member states
part of the profits robbed from the Greek population and that this
money feeds the budgets of countries such as Germany, France and
Belgium.
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