[Home] [Headlines] [Latest Articles] [Latest Comments] [Post] [Mail] [Sign-in] [Setup] [Help] [Register]
|
Status: Not Logged In; Sign In
United States News Title: Capital Flight out of Greece; Run on the Banks Underway; Greek Unions Stage Another Strike Capital Flight out of Greece; Run on the Banks Underway; Greek Unions Stage Another Strike Seeking to avoid taxes on bank accounts and sheltered income, Wealthy Greeks Send Money Abroad. Wealthy Greeks are pulling their money out of local banks and sending it abroad, fearing increased government scrutiny on assets and a run on the banks if Athens is forced to turn to the International Monetary Fund, according to private bankers and other people with knowledge of the situation. Part of the government's austerity package for this year is a declaration of war on income that hasn't been taxed. Clients of private banks also fear that Greece may be unable able to raise the €54 billion it needs this year to pay back maturing bonds and will therefore have to turn to the IMF for help. "Some of our clients are concerned about a run on the banks if the IMF gets involved," said another private banker, this one from a foreign bank. "They believe the situation in Greece will get worse before it gets better. There is also very little clarity from the government about its intentions on new tax measures." "We estimate that €8 billion has moved out of Greece to accounts abroad since December. It's money from bank accounts, stock sales, property sales and other sources," he said, adding that that represented a substantial chunk of the €30 billion under management in Greek's private banks. Wealthy individuals may have good reasons to be concerned, however. Finance Minister George Papaconstantinou earlier this month urged Greeks with accounts abroad to repatriate their money and said the capital will be taxed at a 5% rate. He said those who choose to keep their money abroad should declare their deposits and pay a tax of 8% for the first six months. Thereafter he threatened that Greece will use all laws at its disposal, such as double-taxation agreements, to ask foreign banks for information on Greek account holders. "For us this is the first step towards taxing all accounts in Greece," said the chief financial officer of a major Greek shipping company. "The line is minimum deposits here and moving all assets abroad." Run On The Banks €8 billion out of €30 billion is quite a chunk of change percentagewise. Is anyone in Greece tracking the capital flight? Yet Another Strike Proving once again that the national pastime in Greece is a public strike, Greek Unions Stage Second Strike This Month Over Budget Cuts. Greece’s unions plan to shut down transportation, medical and educational facilities today in a second 24-hour strike aimed at resisting Prime Minister George Papandreou’s drive to cut the European Union’s biggest budget deficit. Air-traffic controllers, customs and tax officials, bus and train drivers, doctors at state-run hospitals and school teachers are walking off the job for a one-day strike to protest government spending cuts that will freeze salaries and hiring and cut bonuses. Journalists are also joining the strike, creating a media blackout. “People on the street will send a strong message to the government but mainly to the European Union, the markets and our partners in Europe that people and their needs must be above the demands of markets,” Yiannis Panagopoulos, president of the private-sector union GSEE, told NET TV yesterday. “We didn’t create the crisis.” Almost 500 international and domestic flights have been canceled today, a spokeswoman for Athens International Airport, Greece’s biggest, said by telephone. The Athens Metro, which carries 650,000 commuters to work each morning, won’t run nor will the capital’s trolleys and trams. Urban buses will operate only until 7:30 a.m. and after 10 p.m. Passenger ferries and other vessels will remain docked until the end of the strike. Once again, public workers everywhere think they should be immune to problems the rest of the population faces.
Post Comment Private Reply Ignore Thread Top • Page Up • Full Thread • Page Down • Bottom/Latest Begin Trace Mode for Comment # 9.
#1. To: Nebuchadnezzar (#0)
Whats taking place there is instructive. Pity the MSM won't use it as such here.
Beyond don't bend your rules when admitting a new memeber, what's so instructive, Boof?
Bending? That is what we call out-and-out financial fraud aided and abetted by GS?
His denial of reality is amusing....(chuckle)
Would be nice if that had any applicability. If you had an ounce of knowledge in this area then you'd understand that when a house make a CDS bet AGAINST something, then the news about it is already out. Greece should have never been admitted to the EU. Their growth rate was too low and their structural deficit too high under EU rules to have even been considered for membership.
There are no replies to Comment # 9. End Trace Mode for Comment # 9.
Top • Page Up • Full Thread • Page Down • Bottom/Latest |
|
[Home] [Headlines] [Latest Articles] [Latest Comments] [Post] [Mail] [Sign-in] [Setup] [Help] [Register]
|