Samaras Says Greece Needs Cash – Fast

Greek Prime Minister Antonis Samaras, still trying to convince reluctant partners in his uneasy coalition government to renege on their campaign pledge and agree to $14.16 billion in spending cuts aimed primarily at workers, pensioners and the poor, said without a consensus Greece will not get the next round of rescue loans from international lenders.
Greece is due a $38.8 billion installment, the last in a first round of $152 billion in a first series of lifeline loans from the Troika of the European Union-International Monetary Fund-European Central Bank (EU-IMF-ECB) which has required harsh austerity measures in return. A second bailout, for $173 billion, is on hold until Samaras pushes through the spending cuts and more reforms aimed at trying to help Greece’s fast-sinking economy to recover.
Samaras said if Greece gets the next installment that it would improve liquidity in the cash-starved country even though much of it has already been pledged to repay banks and investors as Greece essentially is getting loans to repay loans and interest and sees little of the money for government operating expenses or social programs.
Speaking briefly at the opening of the Thessaloniki International Fair, where he broke a long tradition by refusing to give a State of the State economic address and face reporters, Samaras said that, “This year is different; we are at the most crucial point.” As demonstrators were kept far away, Samaras said he had no choice but to also break his campaign vow not to impose more austerity and said he had saved Greece from being forced out of the Eurozone of the 17 countries using the euro as a currency.
“As soon as we get the next installment, there will be liquidity,” said Samaras. Apart from the completion of Greece’s bank recapitalization program, the government wants to use part of the money to settle some of its arrears, which have built up to some 7 billion euros, or $8.9 billion. Samaras is due to meet ECB President Mario Draghi on Sept. 11 to discuss the Greek government’s aims and the ECB’s position.
He spoke as Troika envoys were in Athens to later meet with him and Finance Minister Yiannis Stournaras. Samaras hopes that by adhering to the Troika’s demands he will prove Greece’s commitment and bring in continued aid for the country, which is essentially relying on welfare aid to stay alive. A meeting of Eurozone finance ministers has been set for Oct. 8 and an EU summit will be held on Oct. 18 with the Greece crisis at the forefront because it threatens to jeopardize the Eurozone.