Goodnight Greece – Good morning Colony!

30 November 2012 by Greek Debt Audit Campaign


Announcement on the November 27 Eurogroup decision

On November 27th the Eurozone’s Council of Finance Ministers announced its decisions regarding the Greek public debt. This decision, deadly for Greece’s fiscal situation, destroys the lives of the people, putting their interests behind the interests of the creditors. It allegedly lowers Greek debt by 40 billion euros, by lowering interest rates Interest rates When A lends money to B, B repays the amount lent by A (the capital) as well as a supplementary sum known as interest, so that A has an interest in agreeing to this financial operation. The interest is determined by the interest rate, which may be high or low. To take a very simple example: if A borrows 100 million dollars for 10 years at a fixed interest rate of 5%, the first year he will repay a tenth of the capital initially borrowed (10 million dollars) plus 5% of the capital owed, i.e. 5 million dollars, that is a total of 15 million dollars. In the second year, he will again repay 10% of the capital borrowed, but the 5% now only applies to the remaining 90 million dollars still due, i.e. 4.5 million dollars, or a total of 14.5 million dollars. And so on, until the tenth year when he will repay the last 10 million dollars, plus 5% of that remaining 10 million dollars, i.e. 0.5 million dollars, giving a total of 10.5 million dollars. Over 10 years, the total amount repaid will come to 127.5 million dollars. The repayment of the capital is not usually made in equal instalments. In the initial years, the repayment concerns mainly the interest, and the proportion of capital repaid increases over the years. In this case, if repayments are stopped, the capital still due is higher…

The nominal interest rate is the rate at which the loan is contracted. The real interest rate is the nominal rate reduced by the rate of inflation.
, extending interest Interest An amount paid in remuneration of an investment or received by a lender. Interest is calculated on the amount of the capital invested or borrowed, the duration of the operation and the rate that has been set. repayments, providing for a debt buy back scheme, and extending loan maturities. On the other hand,

For all these reasons, the Greek Debt Audit Campaign believes that the decision of the Eurogroup’s Council of Finance Ministers deepens rather than solves the fiscal crisis, and must therefore be overturned by society itself.

The Greek Debt Audit Campaign insists that conflict with the creditors, i.e. the IMF and the EU, who absorbed the majority of Greek public debt, is unavoidable. Standing up to the creditor loan sharks includes suspension of capital and interest payments, and unilateral rescinding of the Loan Agreements and the Memoranda, on sovereign state terms. Only this path can lead to the necessary cancellation of most, if not all, public debt. The establishment of an Independent Audit Commission, which will open up the books of public debt, is necessary!

 This Eurogroup decision harms tax-payers and public finances!

 Debt is illegal!

 Disobey the creditors!

For more information please see www.elegr.gr




Translation(s)

CADTM

COMMITTEE FOR THE ABOLITION OF ILLEGITIMATE DEBT

8 rue Jonfosse
4000 - Liège- Belgique

00324 60 97 96 80
info@cadtm.org

cadtm.org