"You are heading towards banckruptcy in 2012, Mr.Papademos"

The New Year comes with a harsh letter from the Troika

  

Mr Papademos is about to receive a very strict message from top Troika members Paul Thomsen, Claus Masuch and Matthias Mors along the lines of "the way you are going is the way to bankruptcy".

According to sources of Proto Thema, this is a message in a letter to be sent by the three men of the IMF, EC and ECB. Mr. Reichenbach of the Task Force is already informed and is in agreement with the letter.

The Troika and Raichenbach are coming to Greece, at the latest by the 20th of January, and would like Mr. Papademos to realize two things

1. Immediately reduce the number of employees in public service. The first phase will be the dismissal of 80,000 employees.
2. Deregulate all professions. Top Troika and Task Force members are very clear that there is silence on the Greek part in regards to the new measures, warning that there will be no new memorandum if these changes are not made.

They are wondering "how will Greece persuade about the approval of the loan of 130 billion to Athens when the country has not done anything that was promised?

There is one question bothering Athens, and that is "what are we going to do if the PSI and the new loan are not locked in by March". It is not a rhetorical question.

On March 15th, bonds of 15 billion euros are expiring. If by then we do not have 90 billion from the 7th installment, then there will be bankruptcy. The question will be put officially in the EU Summit in January.

Sources say there is a solution "The EU can give out an express loan equal to the debt. 80% of the bonds that are expiring are in the hands of the ECB and are bought at 60% of their nominal value. Theoretically the EU could help out. But the decision is political. The ECB will get their money back without a haircut and Greece will owe less. So everyone wins."