Lupa Kata Sandi? Klik di Sini

atau Masuk melalui

Belum Memiliki Akun Daftar di Sini


atau Daftar melalui

Sudah Memiliki Akun Masuk di Sini

Konfirmasi Email

Kami telah mengirimkan link aktivasi melalui email ke rudihamdani@gmail.com.

Klik link aktivasi dan dapatkan akses membaca 2 artikel gratis non Laput di koran dan Majalah Tempo

Jika Anda tidak menerima email,
Kirimkan Lagi Sekarang

Greece`s Bailout Expires, Country Defaults on IMF Payment  

Translator

Editor

19 October 2018 14:33 WIB

TEMPO.CO, Athens - Greece slipped deeper into its financial abyss after the bailout program it has relied on for five years expired at midnight Tuesday and the country failed to repay a loan due to the International Monetary Fund, deepening fears over whether it will be able to remain in the eurozone.

With its failure to repay the roughly 1.6 billion euros ($1.8 billion) to the IMF, Greece became the first developed country to fall into arrears on payments to the fund. The last country to do so was Zimbabwe in 2001.

After Greece made a last-ditch effort to extend its bailout, eurozone finance ministers decided in a teleconference late Tuesday night that there was no way they could reach a deal before the deadline.

"It would be crazy to extend the program," said Dutch Finance Minister Jeroen Dijsselbloem, who heads the eurozone finance ministers' body known as the eurogroup. "So that cannot happen and will not happen."

"The program expires tonight," Dijsselbloem said.

The brinkmanship that has characterized Greece's bailout negotiations with its European creditors and the IMF rose several notches over the weekend, when Prime Minister Alexis Tsipras announced he would put a deal proposal by creditors to a referendum on Sunday and urged a "No" vote.

The move increased fears the country could soon fall out of the euro currency bloc and Greeks rushed to pull money out of ATMs, leading the government to shutter its banks Monday and impose restrictions on banking transactions for at least a week. Greeks are now limited to ATM withdrawals of 60 euros ($67) a day and cannot send money abroad or make international payments without special permission.

But in a surprise move late Tuesday, Deputy Prime Minister Yannis Dragasakis hinted that the government might be open to calling off the popular vote, saying it was a political decision.

The government decided on the referendum, he said on state television, "and it can make a decision on something else." It was unclear, however, how that would be possible as Parliament has already voted for it to go ahead.

With its economy teetering on the brink, Greece suffered its second sovereign downgrade in as many days when the Fitch ratings agency lowered it further into junk status, to just one notch above the level where it considers default inevitable.

The agency said the breakdown of negotiations "has significantly increased the risk that Greece will not be able to honor its debt obligations in the coming months, including bonds held by the private sector."

Fitch said it now considered a default on privately-held debt "probable."

Hopes for an 11th-hour deal were raised when the Greek side announced it had submitted a new proposal Tuesday afternoon, and the eurozone's 19 finance ministers held a teleconference to discuss it.

But those hopes were quickly dashed.

German Chancellor Angela Merkel said she ruled out further negotiations with Greece before Sunday's popular vote on whether to accept creditors' demands for budget reforms.

"Before the planned referendum is carried out, we will not negotiate over anything new," the dpa news agency quoted Merkel as saying.

Greece's latest offer involved a proposal to tap Europe's bailout fund — the so-called European Stability Mechanism, a pot of money set up after Greece's rescue programs to help countries in need.

Tsipras' office said the proposal was "for the full coverage of (Greece's) financing needs with the simultaneous restructuring of the debt." It did not provide details.

Dijsselbloem said the finance ministers would "study that request as we should" and that they would hold another conference call Wednesday.

Dragasakis, the Greek deputy prime minister, said the country's new proposal "narrows the differences further."

"We are making an additional effort," he said. "There are six points where this effort can be made. I don't want to get into specifics. But it includes pensions and labor issues."

European officials and Greek opposition parties have been adamant that a "No" vote on Sunday will mean Greece will leave the euro and possibly even the EU.

The government says this is scaremongering, and that a rejection of creditor demands will mean the country is in a better negotiating position.

In Athens, more than 10,000 "Yes" vote supporters gathered outside parliament despite a thunderstorm, chanting "Europe! Europe!"

Most huddled under umbrellas, including Athens resident Sofia Matthaiou.

"I don't know if we'll get a deal. But we have to press them to see reason," she said, referring to the government. "The creditors need to water down their positions too."

The protest came a day after thousands of government supporters advocating a "No" vote held a similar demonstration.

On Monday, European Commission President Jean-Claude Juncker made a new offer to Greece. Under that proposal, Tsipras would need to accept the creditors' proposal that was on the table last weekend. He would also have to change his position on Sunday's referendum.

Commission spokesman Margaritis Schinas said the offer would also involve unspecified discussions on Athens's massive debt load of over 300 billion euros, or around 180 percent of GDP. The Greek side has long called for debt relief, saying its mountainous debt is unsustainable.

A Greek government official said Tsipras had spoken earlier in the day with Juncker, European Central Bank chief Mario Draghi and European Parliament president Martin Schulz.

Meanwhile, missing the IMF payment means Greece is cut off from new loans from the organization. And with its bailout program expiring, Greece will lose access to more than 16 billion euros ($18 billion) in financial support it has not yet tapped.

On the streets of Athens, long lines formed again at ATM machines as Greeks struggled with the new restrictions on banking transactions.

The elderly have been hit particularly hard, with tens of thousands of pensions unpaid as of Tuesday afternoon. Many also found themselves completely cut off from any cash as they do not have bank cards.

The finance ministry said it would open about 1,000 bank branches across the country for three days beginning Wednesday to allow pensioners without bank cards to make withdrawals. But the limit would be set at 120 euros for the whole week.

AP




Indonesia`s Startup Investment at Rp39.8 tn  

14 Desember 2018

Indonesia`s Startup Investment at Rp39.8 tn  

A joint-research by Google and AT Kearney shows that investments in
Indonesia's startups have grown 68 times in the last five years


Jokowi Keeps Low Profile on Social Media  

14 Desember 2018

Jokowi Keeps Low Profile on Social Media  

President Joko Widodo or Jokowi once again mentioned the use of social
media during his speech at the Indonesia Business and Development Expo
2017


International Coffee Day: Solo to Give 5,000 Cups of Free Coffee  

14 Desember 2018

International Coffee Day: Solo to Give 5,000 Cups of Free Coffee  

Harjonagoro Traditional Market in Solo is preparing 5,000 cups
of coffee to be given out for free at the International Coffee
Day event, Oct. 1.


Ed Sheeran Cancels Jakarta Concert  

14 Desember 2018

Ed Sheeran Cancels Jakarta Concert  

Singer Ed Sheeran has canceled his concerts in Jakarta and
other Asian cities following a bike accident.


Halal Thai Restaurant in Bali  

14 Desember 2018

Halal Thai Restaurant in Bali  

Som Chai in Seminyak, Bali, can be considered to be one of
Bali`s Thai restaurants that serve several halal menus.


Top 5 Indonesian Athletes in 2018 Asian Para Games  

14 Desember 2018

Top 5 Indonesian Athletes in 2018 Asian Para Games  

Indonesia is targeting the top-seven rank in the Asian Para
Games 2018.


S. Sumatra Plans Restoration of Hundreds of Hectares of Peat Land

14 Desember 2018

S. Sumatra Plans Restoration of Hundreds of Hectares of Peat Land

Peat land restoration would cover around 594,231 hectares in
South Sumatra this year to preserve the environment, a
government official said.


Sperm Whale Ingested Plastic Waste; Serious Solution Required

14 Desember 2018

Sperm Whale Ingested Plastic Waste; Serious Solution Required

It is estimated 94 percent of plastic waste that enters the
ocean ends up on the seafloor, which threats the lives of
ocean`s creatures.


Roy Marten: Jokowi Leads Indonesia, Ahok Leads Jakarta

24 Oktober 2018

Roy Marten: Jokowi Leads Indonesia, Ahok Leads Jakarta

Actor Roy Marten relentlessly promotes Jokowi for President,
saying that the society had already shown enormous
supports.


Ousted Casillas Speaks of Triumph over Juventus

24 Oktober 2018

Ousted Casillas Speaks of Triumph over Juventus

The Blancos faces Champions League Top 16, needing only six
points to secure the round.