Greece’s former representative to the IMF (and Papandreou) has been called on by Greek Prosecutor

Honorable Members of the European Parliament,  

Honorable President, Honorable Vice Presidents and Honorable other Members of the Committee,

Greece’s former representative to the IMF Panagiotis Roumeliotis has been called on to provide explanations regarding his recent statements that  IMF was knowing that the programme  implemented in Greece would fail (http://www.athensnews.gr/portal/1/57472). Papandreou has been called too.

In 2010 someone prevented the needed restructuring of the Greek dept,  aiming to the destruction of the Greek economy instead of saving it. Who did it and why???

As we today know the reason was the selling of the Greek national wealth. And the accused for the destruction of a whole countryare  Merkel, Barroso, Olli Rehn and others and their  agents Greek politicians, Papandreou and the other known.

The same method is going now to be used by Merkel in Spain etc,  if she is allowed to.

Financial crimes Greek prosecutor Grigoris Peponis on Thursday summoned Roumeliotis and will now hold an investigation into possible “breach of faith against the state” and “economy related crimes”.

Speaking to the New York Times, Roumeliotis had said: “We knew at the fund from the very beginning that this program was impossible to be implemented because we didn’t have any successful example”.

The statement caused the reaction of former prime minister George Papandreou and his close associates, who accused Roumeliotis of not informing anybody about the scepticism expressed. (AMNA)

But earlier (03/04/2012, http://www.epikaira.gr/epikairo.php?id=41095&category_id=88, in Greek)  Mr. Roumeliotis revealed for the first time that one of the key conditions was in 2010  the “haircut” of Greek debt, “photographing” in this way that the then Prime Minister, George Papandreou and Finance Minister Giorgos Papakonstantinou knew about the restructuring of debt two years ago!

Usually, when AMF has to confront a country with structural problems and a significant budget deficits and high debt, recommends them to go directly to debt restructuring,”  Mr. Roumeliotis said

And he continued: “In Greece case, AMF could not by itself make the decision to push the country to make debt restructuring.As they feared  the destabilizing effects of the Eurozone from such an action, and the impact of this destabilization of the Eurozone in the global financial system.

They said it should become an internal devaluation. How to become an internal devaluation? Using fiscal policy, a reduction of salaries and pensions, while if applied in the public sector primarily, and reduced public expenditure and thus reduced the budget deficit, but also used the so-called structural changes, so the economy to resume growth trajectory enters through the release. This was the approach because they could not use exchange rate policy.

“Mr. Roumeliotis said that the “model” was not tested again in another country and was “the first time the fund was facing a country where they could not use all the tools.

“He also revealed that the AMF  initially agreed not to press Greece to restructure its debt “but with the caveat that this will happen immediately after the signing of the memorandum.

“Indeed, the then representative of Greece to the IMF argued that in July 2010, invited by the then chief Strauss-Kahn in his office and said that he must “carry in state (Papandreou), unofficially of course, because he said no because it could cause great inconvenience markets, that they  must put pressure on Europeans to stir up the restructuring process of debt because the debt is growing at breakneck speed and we cannot check it at some point.

” The head of IMF mission in Greece Paul Thomsen reported wages to indicate that “one aspect of the program, which was not yet clear when we came, were the suggestions of many, even within my own team that will have to cut wages extended to the private sector. After a lengthy discussion with the social partners became convinced that it was not necessary.

“The head of the Eurogroup Jean-Claude Juncker, admitted too that “there was a discussion at the beginning of the program where the IMF said that Greece should do a major restructuring, a haircut at the beginning of the program” .  However he said this did not happen, because “at that moment I did not think it would be right, because we did not know what would be the overall effects of such a step and decided to take another road.”

Sincerely Yours

Euripides Billis

Ex-Assistant Professor National University of Athens (NTUA)

Michalacopoulou Av 155, Athens 115257, Greece

You can also see Nα ενημερωθεί ο Οικονομικός Εισαγγελέας κ. Πεπόνης και γι’ αυτά τα θέματα (βίντεο)

Source:Euripides Billis, image http://nosmiling.blogspot.gr

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2 comments on “Greece’s former representative to the IMF (and Papandreou) has been called on by Greek Prosecutor

  1. Pingback: Nα ενημερωθεί ο Οικονομικός Εισαγγελέας κ. Πεπόνης και γι’ αυτά τα θέματα (βίντεο) « Στείριδα- el Steiri-Στείρι Βοιωτίας

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