Germany’s new central bank president Jens Weidmann warned debt-laden Greece that international creditors will pull out aid if it fails to pursue painful cuts to tackle its huge deficit as promised.
“Greece’s capacity for [debt] payment depends foremost on the attitude of the government and the people,” the hawkish Bundesbank chief told Welt am Sonntag daily in an interview that was published yesterday.
“A lot of aid has been given, but under strict conditions such as massive and swift privatizations. If these commitments are not upheld, there will no longer be a basis for additional aid,” he said. “Greece would have made its own choice and should assume the undeniably dramatic consequence of a default on its payments.”
Photo: Reuters
Although a potential Greek default would likely make life hard for eurozone member nations the single currency will survive “and remain stable even in that case.”
Despite a landmark 110 billion euro (US$160 billion) bailout agreed last year, Greece’s 350 billion euro debt load has only become heavier as a deeper-than-expected recession last year weighed on government income.
The European Central Bank has until the end of this month to decide on a second bailout for Greece, but remains divided over the role of the private sector.
Germany wants a second rescue package to include contributions by private creditors, banks and investment funds as the price of Berlin’s involvement.
Diplomats say the need is estimated at more than 90 billion euros — one-third to come from eurozone nations and the IMF, one-third from sell-offs of Greek state assets and the final 30 billion euros from the bank rollovers.
The latter two components are uncertain and it is also uncertain whether the headline 90 billion euro figure includes remaining tranches of the existing 110 billion euro package mustered last year.
While expressing sympathy for public resentment in Greece toward the reforms, the current process is “inevitable” for the country to become more competitive and put its financial house back in order, Weidmann said.
Intel Corp chief executive officer Lip-Bu Tan (陳立武) is expected to meet with Taiwanese suppliers next month in conjunction with the opening of the Computex Taipei trade show, supply chain sources said on Monday. The visit, the first for Tan to Taiwan since assuming his new post last month, would be aimed at enhancing Intel’s ties with suppliers in Taiwan as he attempts to help turn around the struggling US chipmaker, the sources said. Tan is to hold a banquet to celebrate Intel’s 40-year presence in Taiwan before Computex opens on May 20 and invite dozens of Taiwanese suppliers to exchange views
Application-specific integrated circuit designer Faraday Technology Corp (智原) yesterday said that although revenue this quarter would decline 30 percent from last quarter, it retained its full-year forecast of revenue growth of 100 percent. The company attributed the quarterly drop to a slowdown in customers’ production of chips using Faraday’s advanced packaging technology. The company is still confident about its revenue growth this year, given its strong “design-win” — or the projects it won to help customers design their chips, Faraday president Steve Wang (王國雍) told an online earnings conference. “The design-win this year is better than we expected. We believe we will win
Chizuko Kimura has become the first female sushi chef in the world to win a Michelin star, fulfilling a promise she made to her dying husband to continue his legacy. The 54-year-old Japanese chef regained the Michelin star her late husband, Shunei Kimura, won three years ago for their Sushi Shunei restaurant in Paris. For Shunei Kimura, the star was a dream come true. However, the joy was short-lived. He died from cancer just three months later in June 2022. He was 65. The following year, the restaurant in the heart of Montmartre lost its star rating. Chizuko Kimura insisted that the new star is still down
While China’s leaders use their economic and political might to fight US President Donald Trump’s trade war “to the end,” its army of social media soldiers are embarking on a more humorous campaign online. Trump’s tariff blitz has seen Washington and Beijing impose eye-watering duties on imports from the other, fanning a standoff between the economic superpowers that has sparked global recession fears and sent markets into a tailspin. Trump says his policy is a response to years of being “ripped off” by other countries and aims to bring manufacturing to the US, forcing companies to employ US workers. However, China’s online warriors
RSS