Kryeministri Greke anullon udhëtimin SHB A - thellohet kriza e borxheve

 
Kryeministri Greke anullon udhëtimin SHBA - thellohet kriza e  borxheve




Greek PM cancels U.S. trip as debt crisis  deepens

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Greece's Prime Minister George Papandreou  addresses the audience at the 
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ATHENS GR: Greek Prime Minister George Papandreou canceled a planned  visit 
to the United States on Saturday to deal with a deepening crisis at home,  
days before European Union and IMF inspectors decide on further funding for 
the  debt-ridden country.

Finance Minister Evangelos Venizelos rushed to allay  fears the canceled 
trip signaled imminent default, saying such talk was  "ridiculous," but the 
conservative opposition seized the opportunity to demand  snap elections, 
fanning fears Greece lacks the will needed for tough measures  ahead.

"The comments and analyses about an imminent default or bankruptcy  are not 
only irresponsible but also ridiculous," Venizelos said in a  statement.

"Every weekend Greece ... is subject to this organised attack  by 
speculators in international markets."

Papandreou was in London,  en-route to United Nations and International 
Monetary Fund (IMF) meetings, when  he decided to turn back after discussing 
developments with Venizelos, government  officials said.

"The prime minister judged that he should not be away. He  wants to ensure 
that all of Greece's commitments (to its EU partners) are  fulfilled," 
government spokesman Ilias Mossialos told Reuters.

A  government official speaking on condition of anonymity told Reuters 
pressure was  high on Athens from euro zone partners to take additional measures 
to merit  continued funding from a 110 billion euro ($150 billion) bailout 
to avert  default.

"There is an issue of trust. Our partners want very specific  steps and 
commitments and our record so far unfortunately does not inspire  confidence," 
said the official.

Next week, Greece is due to resume talks  with EU and IMF inspectors who 
will judge fiscal progress before releasing the  next 8 billion euro loan 
tranche in October.

Greece has said it has cash  until next month.

"It's a sign that things are very tight. Papandreou's  presence is crucial 
to make sure there are no setbacks with issues that need to  be resolved," 
said Theodore Krintas, head of wealth management at Attica  Bank.

ELECTION CALL

The conservative opposition New Democracy  party, which voted against the 
bailout that saved Greece from bankruptcy last  year, seized the opportunity 
to make a fresh call for snap  elections.

"The only solution is elections, so that the people's will is  expressed," 
New Democracy leader Antonis Samaras said in a speech in the  northern city 
of Thessaloniki.

New Democracy, which is leading the ruling  socialists in opinion polls, 
says the policy mix used cannot bring Greece out of  the crisis and austerity 
measures were stifling the economy.

The  conservatives are riding a wave of public discontent after two years 
of  austerity measures and are proposing tax cuts and growth boosting 
measures  instead.

"When a policy hurts my country, I will surely say no. Why  should I 
co-sign a mistake?" Samaras said. "We want this destructive policy  toppled."

Apart from the slow pace of reforms and fiscal slippages,  international 
lenders are most concerned with the lack of political consensus in  Greece. 
Even if elections are held in 2013 as planned, the next government must  apply 
agreed policies for the country to recover.

The ruling socialists  have a majority in parliament but political analysts 
say internal dissent and  public unrest, such as strikes and violent 
protests, may prompt snap  elections.

Fiscal slippage this year, which the government blamed on a  
deeper-than-projected recession, forced Athens to slap a levy on property to  make up for 
the shortfall as a target of capping its budget deficit at 7.6  percent of 
gross domestic product looked out of reach.

Lenders have long  warned against one-off measures and more taxes as a way 
out of the crisis  shaking the euro. They have asked for urgent reforms and 
privatisations and a  drastic shrinking of the bloated public sector.

EU economic and monetary  affairs commissioner Olli Rehn has said 
inspectors from the European Central  Bank, EU and IMF would report back on progress 
in early October, meaning the  next disbursement of aid to Greece could be 
paid by mid-October.

A second  109 billion euro bailout agreed in July, after it became clear 
Greece would not  be able to return to bond markets, has also hit snags.

Euro zone partners  are asking for collateral before giving Athens more 
cash and banks are slow to  participate in a bond swap scheme key to the deal.

Papandreou was to meet  United Nations Secretary-General Ban Ki-Moon in New 
York on Sunday and IMF head  Christine Lagarde on Tuesday. Venizelos is 
still due to attend an IMF meeting in  Washington later in the week.