–Clarifies That Samaras Stipulated Cash Would Run Out End Of November

FRANKFURT (MNI) – Greece will run out of money at the end of next
month if it does not receive the next aid tranche from its European
creditors, Greek Prime Minister Antonis Samaras said in an interview
with German business daily Handelsblatt, published Friday.

Samaras said the European Central Bank should consider accepting
lower interest payments on its holdings of Greek sovereign debt or
rolling over its debt holdings to give Greece more time. He also
suggested Greek banks could be recapitalized directly through the ESM.

Samaras said that despite more pain ahead there were some signs of
recovery in Greece. “They are there,” he told the paper, citing renewed
inflows of bank deposits and an improved trade balance.

Asked how long Greece can last without the next E31.5 billion aid
tranche, Samaras replied: “until the end of November, then the coffers
are empty.”

Samaras resisted further cuts to pensions and wages being sought by
the Troika – made up of the European Commission, the International
Monetary Fund and the ECB – which has been in Athens negotiating terms
for the next aid tranche’s release and aiming to close a budget gap of
about 13.5 billion over the next two years.

“That is very hard, because we are bleeding already. The cuts until
now already go down to the bone. We are at the limits of what our people
can accept,” Samaras said, arguing the spending

Samaras reiterated that he is looking for “more time for fiscal
consolidation, but not necessarily more aid.” He said the ECB could help
by easing the terms on its sovereign debt holdings.

“The ECB, which owns Greek government debt, could declare itself
happy with lower interest on this paper. Or it could agree to a rollover
when these bonds are due,” Samaras said.

“I could also imagine the recapitalization of Greece’s banks, as is
being considered for Spain, coming directly via the ESM and not added to
government debt. That would represent a clear alleviation,” he said.

ECB President Mario Draghi seemed to reject the idea Thursday, when
he said that extending the maturities on the Greek bonds the ECB holds
“would constitute monetary financing.”

Samaras repeated that Greece is committed to remaining in the euro
and “will keep its promises” in terms of repaying its debts.

“There is no way back. the exit from he euro is not an option for
Greece; it would be a catastrophe,” Samaras said. An exit, he said,
“would be a much bigger setback – the costs greater than the reform
policy.”

— Frankfurt bureau: +49 69 720 142; email: ccermak@mni-news.com

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