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Euros are in a muddle for the next decade


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According to what I posted earlier.


"Under the terms set before Tsipras on Sunday night, the Greek parliament has to endorse the entire package on Monday and then pass several pieces of legislation by Wednesday, including on pensions reform and a new VAT regime, before the eurozone will agree to negotiate a new three-year rescue package."


How do we know the European leaders speak for the Greek parliament. Have they done the numbers. There has been barely enough time for the package to have filtered through the web of Greek politics.


My earlier article talked of splits amongst among Tsipars's ministers and 15 law makers not approving the deal in its entirety. Has this now all been healed?






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According to a Fitch Ratings press release dated 2 July 2015 the Greek banks are in so much trouble that it will be difficult to recapitalise them under current ECB banking rules. Apparently in March of this year 36% of domestic loans where in arrears. The situation is probably much worse now than in March. According to the report it took 2 years to lift capital controls on Cypriot banks after their collapse.






"The liquidity position of Greek banks is much deteriorated without access to incremental ELA. The ECB only extends ELA to solvent banks and against acceptable collateral. The credit quality of Greek banks' domestic loan books is exceptionally weak. We calculate that for the country's four largest banks an aggregated total regulatory capital erosion equivalent to around 4.8% of risk-weighted assets (5% of domestic gross loans) would probably render them non-compliant with the EU minimum total capital requirement of 8%, assuming static risk-weighted assets.


At end-March, these banks reported 90-days-past-due loans equivalent to around 36% of total domestic loans, and arrears may since have risen significantly.


A swift lifting of capital controls is highly unlikely even if there is successful resumption of negotiations with the ECB, IMF and European Commission. Controls on Cypriot banks, lifted in May, lasted two years."







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Would like to see an update from the man, I mean a lot of water has flowed under the Emmerich Rhine Bridge since 2011.

Ireland and Spain have largely recovered, Italy is in slightly better shape, and not sure about Portugal.

The only constant seems to be Greece.





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