OTCMKTS:NBGGY National Bank of Greece: Austerity
Post# of 22757
Posted On: 12/07/2015 7:08:14 PM
OTCMKTS:NBGGY
National Bank of Greece: Austerity on the Rise
Greece introduces further spending cuts and tax increase as part of the 2016 budget
Dec 7, 2015 at 9:39 am Est
National Bank of Greece: Austerity on the Rise
National Bank of Greece: Austerity on the Rise
By Troy Kuhn on Dec 7, 2015 at 9:39 am Est
Bailout talks between Greece and international creditors are set to resume tomorrow, with substantial advances having been made over the weekend. The Greek parliament on Saturday approved a budget for the year 2016, introducing additional austerity measures into an economy already burdened with strict spending cuts and tax weights. The budget includes a number of economic measures aimed at seeking favor of international creditors. Greece’s international creditors have long backed the austerity move, hoping to steer the economy around.
The 2016 budget is designed as such that a major share of the surplus is derived from spending cuts and a higher tax burden. Needless to say, the reforms come at the expense of the welfare of Greek citizens. Indeed, Greek PM Alexis Tsipras said to lawmakers prior to the parliamentary vote: “This budget is a difficult task for a government that wants to leave its mark with social justice.”
Of the €5.7 billion made from spending cuts, €1.8 billion ensue from pensions and €500 million come from defense cuts. Savings for the 2016 budget are significantly higher than the amount extracted this year. Furthermore, taxes are set to be bolstered by €2 billion.
A major highlight of the Greek debt crisis has been disagreement between international creditors and the Greek government over austerity. International creditors continue to stress on introducing higher austerity for stirring any significant recovery in the economy. On the other hand, the Greek government, particularly the leftist Syriza party, has been adamant on prioritizing the welfare of its citizens. Pension cuts have particularly created discontent among the public.
The ruling Syriza party is under considerable pressure to stir an economic turnaround by introducing harsh reforms. Greece has to meet targets and extract significant savings, while also maintaining political stability in the country. However, both tasks could prove to be considerably difficult, while submitting to the constraints marked down by international creditors in the third bailout package.
Meanwhile, Greece’s banking sector, led by the country’s four major banks, namely, National Bank of Greece (ADR) (OTCMKTS:NBGGY), Piraeus Bank, Alpha Bank, and Eurobank still await a crucial bailout review. Although recapitalization was recently completed with lesser-than-expected costs to taxpayers, the case of debt relief for banks is still waiting for a green signal from international creditors. The banking sector awaits a bailout review scheduled for February next year, which will pave the way for negotiations regarding debt relief. The country needs long-term debt relief from the Eurozone in order to ensure organic growth, without a high debt dragging the economy down.
National Bank of Greece stock resumed trade on Friday after being delisted from the New York Stock Exchange, on account of an eroded market cap. Year-to-date (YTD), shares had cut more than 90% of their market value, which justified the case for delisting.
The stock now trades in over-the-counter market. On Friday, the stock dropped almost 70%, to close at $0.73.
National Bank of Greece: Austerity on the Rise
Greece introduces further spending cuts and tax increase as part of the 2016 budget
Dec 7, 2015 at 9:39 am Est
National Bank of Greece: Austerity on the Rise
National Bank of Greece: Austerity on the Rise
By Troy Kuhn on Dec 7, 2015 at 9:39 am Est
Bailout talks between Greece and international creditors are set to resume tomorrow, with substantial advances having been made over the weekend. The Greek parliament on Saturday approved a budget for the year 2016, introducing additional austerity measures into an economy already burdened with strict spending cuts and tax weights. The budget includes a number of economic measures aimed at seeking favor of international creditors. Greece’s international creditors have long backed the austerity move, hoping to steer the economy around.
The 2016 budget is designed as such that a major share of the surplus is derived from spending cuts and a higher tax burden. Needless to say, the reforms come at the expense of the welfare of Greek citizens. Indeed, Greek PM Alexis Tsipras said to lawmakers prior to the parliamentary vote: “This budget is a difficult task for a government that wants to leave its mark with social justice.”
Of the €5.7 billion made from spending cuts, €1.8 billion ensue from pensions and €500 million come from defense cuts. Savings for the 2016 budget are significantly higher than the amount extracted this year. Furthermore, taxes are set to be bolstered by €2 billion.
A major highlight of the Greek debt crisis has been disagreement between international creditors and the Greek government over austerity. International creditors continue to stress on introducing higher austerity for stirring any significant recovery in the economy. On the other hand, the Greek government, particularly the leftist Syriza party, has been adamant on prioritizing the welfare of its citizens. Pension cuts have particularly created discontent among the public.
The ruling Syriza party is under considerable pressure to stir an economic turnaround by introducing harsh reforms. Greece has to meet targets and extract significant savings, while also maintaining political stability in the country. However, both tasks could prove to be considerably difficult, while submitting to the constraints marked down by international creditors in the third bailout package.
Meanwhile, Greece’s banking sector, led by the country’s four major banks, namely, National Bank of Greece (ADR) (OTCMKTS:NBGGY), Piraeus Bank, Alpha Bank, and Eurobank still await a crucial bailout review. Although recapitalization was recently completed with lesser-than-expected costs to taxpayers, the case of debt relief for banks is still waiting for a green signal from international creditors. The banking sector awaits a bailout review scheduled for February next year, which will pave the way for negotiations regarding debt relief. The country needs long-term debt relief from the Eurozone in order to ensure organic growth, without a high debt dragging the economy down.
National Bank of Greece stock resumed trade on Friday after being delisted from the New York Stock Exchange, on account of an eroded market cap. Year-to-date (YTD), shares had cut more than 90% of their market value, which justified the case for delisting.
The stock now trades in over-the-counter market. On Friday, the stock dropped almost 70%, to close at $0.73.
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NASDAQ DIP and RIP
Here is the best word that describes what i do here.
Intuitive;
means having the ability to understand or know something without any direct evidence or reasoning process.
I was born with it, I'm truly blessed!
Alway's searching for winners'
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