Bloomberg
January 5, 2012
Prime Minister Lucas Papademos told fellow Greeks that deeper cuts in incomes are the only way for the country to remain in the euro area and receive more financing (GKCPIUHY) from international creditors, steps that would avert an economic collapse that may otherwise come as soon as March.
“We have to give up a little so we don’t lose a lot,” Papademos said, according to an e-mailed transcript of his statements to union and business leaders yesterday. Talks later this month with officials from the European Union, International Monetary Fund and European Central Bank, the so-called troika, will focus on a “credible” economic plan for 2012 to 2015.
“Without this agreement with the troika and subsequent financing, Greece in March faces the immediate risk of a disorderly default,” he said.
Appointed in early November to lead an interim government to secure a second financing package for the country, Papademos is racing to complete a voluntary swap of debt with private bondholders, part of the new rescue plan for the country, which also includes 130 billion euros ($168 billion) of public funds. The country redeems 14.4 billion euros of bonds on March 20.
The premier will hold a Cabinet meeting at 3:30 p.m. Athens time today on an omnibus bill that will include opening up so- called closed professions, including taxis, and regulation on settling outstanding taxes, in a bid to tackle pledges for reform that the troika has said aren’t being implemented effectively or promptly enough to allow the economy to become more competitive and return to growth.
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