HSBC: Greece will need bailouts exit monitoring

Α Decrease font Enlarge font
HSBC: Greece will need bailouts exit monitoring

The international banking group HSBC has joined the European Commission and Bank of Greece in doubts that Greece can make a so-called “clean exit” from 326 billion euros ($392.78 billion) in three bailouts that will expire in August.

HSBC agreed with central bank Governor Yannis Stournaras that a precautionary program or increased monitoring will be necessary for Greece once the country has emerged from eight years of rescue packages as harsh austerity measures will continue and fiscal goals have to be met to avoid triggering automatic spending cuts.

Prime Minister and Radical Left SYRIZA leader Alexis Tsipras said he has brought the country to recovery, ironically without noting that if that comes to pass that it would be because he reneged on anti-austerity promises to reverse big pay cuts, tax hikes, slashed pensions and worker firings his Administration has continued.

In statements to the Financial Times in London, HSBC regional analyst Fabio Balboni said, “For a number of years, there has been concern about a possible Greek exit from the eurozone. But, having regained access to markets last year, in 2018 Greece might exit its bailout program instead, after eight long years, and nine finance ministers.”

He conceded that a so-called “clean exit” could be feasible, at least for a period of time, but did warn that “a precautionary program, or at least ‘enhanced’ post-program surveillance, might be needed to ensure Greek bonds remain eligible in the ECB refinancing operations,” as Greece is “still far from an investment grade and remains excluded from the QE program.”

He was referring to the European Central Bank, which, along with the European Union and European Stability Mechanism makes up the EU-ECB-ESM Troika that put up 86 billion euros ($103.62 billion) in a third bailout Tsipras said he would never seek nor accept but did both, along with more brutal conditions on workers, pensioners and the poor.

Tsipras earlier said the country will make a successful return to markets this year. A test bond of 3-billion euros ($3.61 billion) sold in July, 2017 but at interest rates more than three times higher than the cost of the bailouts, a foreboding harbinger.

Stournaras and Tsipras’ Administration, which includes the pro-austerity, marginal, jingoistic Independent Greeks (ANEL) have been feuding for the last three years over the country’s crushing economic crisis as he has downplayed the Premier’s boasting he’s brought a recovery, ironically by reneging on anti-austerity vows.

Stournaras said a contingency plan should be in place in case the country can’t make a successful return to markets as a way to boost investor confidence and lower borrowing costs but ran into a SYRIZA buzzsaw.

Stournaras was described as a “failed minister,” referring to his tenure as Finance Minister in a former New Democracy-led coalition with the former PASOK Socialists in which he backed austerity – as has Tsipras and his ANEL partner, Defense Minister Panos Kammenos.

“Just because a failed finance minister from a failed government had favored a credit line instead of a return to markets does not mean that a successful government can’t do things better,” a government statement said.

The European Commission’s mission chief to Greece earlier said the government should stop talking about a “clean exit” from the bailouts.

Tsipras has spouted the term “clean exit,” but the reality could be a lot messier, Costello suggested. Tsipras has committed to more pension cuts and taxes on low-and-middle income families past the bailout end as well as automatic cuts that could be triggered if the government fails to hit fiscal targets as it almost always has.

“Now we want to see action,” Costello told the Greek Economy 2017 conference at the American-Hellenic Chamber of Commerce, noting that Tsipras’ government has been slow to deliver on past promises and as unfinished reforms and measures drag on as he tries to mollify an audience that’s abandoned him for reneging on anti-austerity vows.

Read more here.

RELATED TOPICS: GreeceGreek tourism newsTourism in GreeceGreek islandsHotels in GreeceTravel to GreeceGreek destinations Greek travel marketGreek tourism statisticsGreek tourism report

Photo Source: Wikimedia Commons Copyright: Amitauti (talk) License: CC-BY-SA


  1. 23/03 01:00

    Media: Magaluf in Maldives to fine drunk Brits €500 for anti-social behaviour

  2. 23/03 00:53

    Business Travel: How employers block the new trend of "bleisure"

  3. 23/03 00:41

    Athens students and teachers visit Lemnos Gallipoli Memorial and Shrine

  4. 23/03 00:32

    Greek PM calls to congratulate Russia's Vladimir Putin on re-election

  5. 23/03 00:24

    Bill on pets and strays to make neutering obligatory across Greece

  6. 23/03 00:21

    Greek PM criticizes tax havens and calls for fiscal justice at European Council

  7. 23/03 00:17

    Chinese Fosun to bid again for Greece's Ethniki Insurance

  8. 23/03 00:13

    Report: Works of art inspired by the Greek War of Independence

  9. 22/03 23:55

    CNN on Greece: Enough perfect locations to last anyone a lifetime of vacations!

  10. 22/03 23:43

    WTTC: Tourism accounted for 10.4% of global GDP and 9.9% of total employment in 2017

  11. 22/03 23:35

    Greek Evzones as Guard of Honor at Melbourne’s Parliament House (video)

  12. 22/03 23:32

    Trip Advisor: Crete among top-5 destinations in the world for 2018

  13. 22/03 23:20

    Greek Foreign Minister begins historic visit to neighboring Skopje

  14. 22/03 23:15

    Survey: How many Greeks fast for Great Lent and Holy Week

  15. 22/03 22:41

    White House and US President Trump celebrate Greece and Greek community

  16. 22/03 22:24

    Greek singer to perform at White House on Independence Day March 25th

  17. 22/03 20:11

    Mykonos Mayor: Our island is betting on Greek-American tourists

  18. 22/03 18:08

    MEDFEST program to promote culinary tourism in Greece

  19. 22/03 16:56

    Greek film to be screened at New York City Independent Film Festival

  20. 22/03 14:51

    First football club hotel under construction by Juventus in Continassa

  21. 22/03 14:45

    Russian cosmonaut lauds Greek tourist resorts in video message from space

  22. 22/03 10:25

    'Nature for Water' the theme for 25th World Water Day

  23. 22/03 02:24

    Greek Archaeologists appalled by deaths and monuments destruction in Afrin

  24. 22/03 02:21

    Study: New opportunities arise in Greece's healthcare sector

  25. 22/03 02:18

    WiFi4EU: Registration opens for free wireless internet hotspots in public spaces

  26. 22/03 02:14

    Greek port of Igoumenitsa wins EU’s sustainable mobility award

  27. 22/03 01:52

    Greece's Amphipolis archaeological study in dire need of funding

  28. 22/03 00:24

    Eni CEO: East Mediterranean gas could supply whole of Europe

  29. 22/03 00:19

    Another Greek Bank implements ambitious digital transformation plan

  30. 22/03 00:06

    Media: Next Assassin’s Creed video game set in ancient Greece

  31. 21/03 23:44

    Deutsche Telekom acquires remaining 5% stake in Greece's OTE

  32. 21/03 22:52

    SNF signs memorandum of collaboration with Greek State (video)

  33. 21/03 21:20

    Benaki Museum and Aria Hotels ally for Leigh Fermor House

  34. 21/03 19:18

    Report: The Death of Cash in Travel

  35. 21/03 19:09

    Athens Airport Innovation Challenge: THE DIGITAL GATE II winners

  36. 21/03 18:57

    Good Friday Summit in Crete's ancient Lappa focuses on cultural values

  37. 21/03 18:48

    Sharing Economy: In Europe, we made a "Bang" but it wasn't "Big"

  38. 21/03 18:30

    Greek Cypriot from United Kingdom voted best teacher in the world

  39. 21/03 15:39

    Mycenaean findings: Gigantic 1250 BC building project in northern Copais

  40. 21/03 14:24

    Report: New book highlights Greek Diaspora’s benefaction work

  41. 21/03 14:17

    Greek Art Theater Karolos Koun in Athens honors the 1821 revolution

  42. 21/03 12:12

    Greek state arrears to private sector down to €2.443 billion in January

  43. 21/03 01:16

    Land registry offices in go-slow mode across Greece

  44. 21/03 01:11

    Central banker: Greece needs steep increase in private investments

  45. 21/03 01:06

    Greek privatization fund: Better offer for rolling stock maintenance provider

  46. 21/03 00:56

    Tasty Greek oregano leads to unique herb business

  47. 21/03 00:52

    Hermes Airports launches a new magazine in Larnaka and Paphos

  48. 21/03 00:41

    Earth Hour: Switching off the lights for 60 minutes on March 24

  49. 21/03 00:34

    Report: Prince Harry and Meghan Markle in ‘Greek island stopover’

  50. 21/03 00:23

    Greek opposition leader talks investments with Emir of Qatar

  51. 21/03 00:16

    Exhibition ‘Fred Boissonnas in Egypt’ at Athens Benaki Museum

  52. 21/03 00:14

    TUI accelerates expansion of its cruise fleet in Germany and UK

  53. 21/03 00:05

    Herta Muller will read from her book in Athens on March 21 and 22

  54. 20/03 23:56

    Diaspora: “Macedonia is Greece” rally takes place in New York (video)

  55. 20/03 23:40

    Greek Weather: Ski in the northern mountains, swim in the southern beaches

  56. 20/03 22:51

    Niarchos Foundation to sign deal with Greek State over health services

  57. 20/03 22:35

    E-auctions for foreclosed properties by Greek state to commence on April 27

  58. 20/03 16:27

    Report: Morsel Spork, the ultimate camping utensil (video)

  59. 20/03 14:50

    Report: Laws around the globe that can send tourists to jail - no mooning in Greece

  60. 20/03 14:19

    Spring Equinox at 18:15 on Tuesday marks official start of season in Greece

  61. 20/03 12:20

    German tourism: Bookings for Greece, Turkey and Egypt rise as Spain retreats

  62. 20/03 11:00

    SightRunnin' Greece: Discover the city with your running shoes

  63. 20/03 02:31

    Cyprus residents' trips abroad rise by 1.7% in February this year

  64. 20/03 02:27

    Study: Wages in Greece decrease by 19.1% since 2010

  65. 20/03 02:20

    Melbourne’s historic Orthodox Church re-opens after disastrous fire

  66. 20/03 02:17

    Greek merchant shipping fleet up in numbers during January

  67. 20/03 02:05

    Hotels: Ikos Resorts expand to Spain

  68. 20/03 02:00

    US Ambassador visits and lauds ancient site at Dodoni in Epirus, Greece

  69. 20/03 01:56

    Tourist arrivals up by 23.4% in Cyprus during February

  70. 20/03 01:51

    Holocaust survivor Moshe Aelion leads Remembrance March in Thessaloniki

  71. 20/03 01:45

    "Travels in Greece" show on display at Benaki Museum in Athens

  72. 20/03 01:38

    Greek PM: Tourism will be a driving force for the economy

  73. 19/03 23:57

    Visit Greece: Things to do with kids in Athens and the islands

  74. 19/03 23:51

    Dimera Group to focus on logistics, food and hotels in Greece

  75. 19/03 23:48

    Lufthansa launches new #SayYesToTheWorld campaign in India

  76. 19/03 23:20

    Russian tourism: Greece's ranks 4th among top destinations in May

  77. 19/03 22:53

    Central Athens metro station to close on Tuesday for Afrin rally

  78. 19/03 20:40

    Transfer of Thessaloniki port stake to be concluded by early next week

  79. 19/03 18:15

    Greek PM visits Tinos and meets island’s mayor

  80. 19/03 16:10

    Piraeus top port in EU: 32 million ferry boat passengers in Greece for 2015

  81. 19/03 14:04

    New York Rotary Club celebrates Greek Independence Day (video)

  82. 19/03 12:54

    Interview: Silicon Valley Robotics CEO visits Delphi in Greece

  83. 17/03 23:45

    Trikala in Thessaly becomes first Greek city with 5G technology

  84. 17/03 23:39

    Media: Prince Charles and Camilla Parker to visit Greece in May

  85. 17/03 23:29

    E-tickets to museums and archaeological sites soon in Greece

  86. 17/03 22:34

    Fraport Greece: Renovations and upgrades at all 14 regional airports concluded by 2021

  87. 17/03 20:22

    US envoy notes Ioannina's potential for sports, religious and cultural tourism

  88. 17/03 18:11

    Report: Why Greek island hopping by ferry is fun and economical

  89. 17/03 16:05

    Tax cuts and reforms dominate Greek main opposition’s agenda (video)

  90. 17/03 14:59

    New air carrier Cyprus Airways to resume Athens-Larnaca route

  91. 17/03 12:51

    Pyatt: US and Greece will enhance bilateral investment cooperation

  92. 17/03 10:41

    Greek Agriculture Minister briefs MEPs on EU’s post-2020 farming policy

  93. 16/03 18:05

    101 projects of 180 million euros funded on the Aegean islands

  94. 16/03 17:58

    Talented students from Kos to represent Greece in “Dance World Cup” final

  95. 16/03 17:54

    Greek PM to inaugurate Cycladic Islands-mainland power grid link

  96. 16/03 17:47

    Ancient Greek Epics by Homer help war veterans cope with stress

  97. 16/03 17:43

    Traffic restrictions in Athens city center for Half Marathon on Sunday

  98. 16/03 17:35

    Travel guide: Explore the beauties of mainland Greece

  99. 16/03 14:17

    Temperatures to reach 28 degrees Celsius in Greece over weekend

  100. 16/03 12:30

    Flight from Vienna launches tourist season for Greek island of Rhodes