Loans and Finance

Loans and Finance


News and information about loans, money, debt, finance and business issues.

Tuesday, November 24, 2015

Anarchists Detonate Bomb in Athens

Anarchists protesting about the bailout are believed to be behind this morning's bomb explosion in Athens, smashing windows at the Federation of Greek Enterprises.

Monday, November 23, 2015

Greece's Tax Debt

Until Greece brings its taxation system into the first world, it will never resolve its economic problems.

Friday, November 20, 2015

Greek Government Wins Bailout Vote - Barely

The Greek parliament approved a reform bill on Thursday to secure further bailout funds from the Quadriga.

However, Syriza's majority shrank to three seats after two dissenting lawmakers were expelled.

The bill, outlining regulation on tax arrears and home foreclosures, paves the way for the disbursement of 2 billion euros to pay state arrears and a further 10 billion euro to recapitalise Greece's top four banks.

This victory will not be the end of the story.

Thursday, November 19, 2015

Greek Bailout Vote Hangs In The Balance

Yesterday I wrote the following:
"In theory the Greek parliament will pass the remaining legislative measures on Thursday. This will then pave the way for the cash release by the end of the week.

What could possibly go wrong?
Regarding what could go wrong, here is the answer as per Keep Talking Greece:
"Syriza lawmaker and former government spokesman Gavriil Sakellaridis submitted his resignation on Thursday morning, hours before the Parliament would be called to vote for the bill of prior actions and new austerity measures.

“Sakellaridis raised objections to the bill,” Greek media report adding that it was Prime Minister Alexis Tsipras who asked the government spokesman of the first Syriza government and ex Mayor candidate for Athens to resign.

Sources from the PM’s office allege that Sakellaridis was not going to attend the voting tonight, after his requests for some modifications on the multi-bill were turned down.

Important to note that Sakellaridis returns his parliamentary seat to SYRIZA with the effect that the ruling party will keep the existing number of seats (145).

In the Parliament, Sakellaridis will be allegedly replaced by a Alternate Minister for Administrative Reform Christoforos Vernadakis who did not manage to enter the Parliament in September elections.
However, media stress that “there is not time for the new MP to take an oath today” so that probably the coalition government will go voting with minus one vote, that is with 144 MPs from SYRIZA and 10 MPs from Independent Greeks in a Parliament of 300 seats.

It is not clear whether there will be more rebels in SYRIZA or ANEL during the day.

The government needs at least 151 votes to pass a bill."
Will the Greek government get its 151 votes today?

Don't hold your breath!

Wednesday, November 18, 2015

Greece To Receive €12bn, Probably

Greece has reached an agreement to unlock the first major tranche of rescue money as per its €86bn international bailout programme.

Athens, seemingly, has successfully passed the 48 "milestones" demanded by the Quadriga, freeing up €12bn.

€2bn will go to the government, and €10bn will be used to try to recapitalise the country's banking system.

In theory the Greek parliament will pass the remaining legislative measures on Thursday. This will then pave the way for the cash release by the end of the week.

What could possibly go wrong?

Tuesday, November 17, 2015

Osborne Comments on -0.1% Inflation

UK CPI Remains At -0.1%

Monday, November 16, 2015

Greece Having Problems Implementing Program

It is hardly surprising that Greece is having problems implementing the Quadriga's imposed program.

Wise Financial Advice

Friday, November 13, 2015

£13BN of Northern Rock Mortgages Sold To US

The Government has sold £13bn of the mortgage assets it acquired after rescuing Northern Rock during the financial crisis.

The mortgages have been sold by UK Asset Resolution (UKAR) to US private equity firm Cerberus.

A total of 120,000 residential mortgages are included in the transaction, with an average outstanding balance of roughly £100,000.

The Treasury said in a statement that UKAR had sold the mortgages for £280m more than their book value. The sale means UKAR can pay back £5.5bn of its loan from the government.

Given how banks repackage debt and sell it on (the cause of the last banking crisis), we should not be surprised to see these debts back on the books of a British bank in the coming years.

Schaeuble Reveals Stubborn Streak - Surely Not?

Thursday, November 12, 2015

Greece Goes On Strike

Syriza Calls For Strike Against Syriza

Those whom the gods wish to destroy, they first make mad.

Wednesday, November 11, 2015

UK Unemployment Falls

The ONS reports that the unemployment rate fell to 5.3% in the three months to September, down from 5.6% in the previous three months and the lowest rate since April 2008.

Employment rose by 177,000 over the quarter, meaning there are now 31.2m people in work, according to the Office for National Statistics (ONS).

Britain's working age employment rate now stands at 73.7%, Britain now has the highest employment rate and level since records began in 1971.

As with all statistics from the ONS, be aware that they are out of dated and invariably subject to revision.

Monday, November 09, 2015

Greece Fails To Impress Quadriga

Unsurprisingly the wheels are falling off the Greek bailout again, as Greece battles to secure the release of €2bn in bail-out cash.

Despite assurances over the weekend, based on hope rather than reality, by Greece that the tranche of money would be released, it hasn't.

It seems that Greek finance ministry officials have failed to convince Greece's creditors that their plans added up, delaying disbursement for at least another week.

One of the main sticking points centre around laws to ease the process of home repossessions for indebted Greeks. The Quadriga are demanding that Greek residences valued above €120,000 be subject to the country's foreclosure laws, from the current level of €200,000.

However, Syriza has resisted the demand for fear of exposing thousands more people to the threat of losing their property.

Additionally, Greece does not want to impose a 23% tax on private schools and other issues surrounding VAT.

As Pascal Saint-Amans, director of tax policy at the Organisation for Economic Development (OECD), warned there are no “quick fixes” for Greece's endemic tax avoidance problems. He is also very sceptical about Greece's ability to reform its third world tax system.

He is quoted by the Telegraph:

"The challenges in Greece are so big.

It's about the complete lack of compliance, it's about a very weak tax administration, it's about the fact that paying taxes remains something that people don't want to do because they don't see how the money is spent.

Very often as tax people we lose sight of the fact that tax is just a means to fund a society. The reforms must take both into account”
Thus until Greece fundamentally reforms its tax collection system, it hasn't got a hope in hell's chance of moving forward. That will require a radical change of mindset by the Greek people, something they are probably not prepared to do.