Troika money is sufficient only for the old loans

The country is struggling to secure the nearly 70bil euros we need to borrow in 2011 "wiith blood and sacrifices" . The government has set a target of raising a total of 69,5bil euros while for 1/3 of it, the international markets have to be confronted face to face for the first time after many months.

But time is not on the government’s side. The Troika loan, which translates into 46,5bil euros for 2011, is just a minor help since it will only cover the current maturities on the bonds and treasury bills of the year, amounting to 46,1bil euros (18 of which will be in treasury bills).

In order to function properly and despite the cuts and the fierce austerity, the State would have to borrow an additional 23bil euros, all from the markets.

The government is counting heavily on the loan from the Diaspora in order to smooth its entry into the market. However, the start of the new year is a double negative. As if the expensive spreads and the huge risk premiums on Greek government bonds were not enough (more than the 930 and 1000 units respectively) Germany, the point of reference for the entire euro zone, has also started to borrow more expensively. So the interest for Greece today would be 12,4% (!) when only a month ago Germany was borrowing at 2,7% and now at more than 3.

In January 2011, Greece should extend about 3bil short-term titles, with monthly auctions of new treasury bills; as of September the State has already chosen to carry out monthly instead of quarterly treasury auctions.

March is considered a difficult month, when many old bonds will end, while emphasis is placed on May and August too.