Monday, July 10 2017 11:40 EEST
Greece is Not Going to Go On the Dublin and Iceland Stops to Bankruptcy

In 2008, Iceland faced severe financial consequences, when the leading Icelandic banks collapsed, the aggregate assets of which repeatedly exceeded the country's GDP. At the end of November 2009, it was announced that it was difficult to service the debt of Dubai World, the state investment fund of the Emirate of Dubai (UAE).

After that, rumors spread in the Western press that Greece with a budget deficit of 12.7% this year and 113% of the national debt may be the first bankrupt euro zone. The rating agency Fitch downgraded this week Greece's credit rating from "A-" to "BBB +" with a negative outlook. On Monday, Standard & Poor's rating agency warned that it could lower Greece's sovereign rating due to possible problems of the country in servicing its foreign debt.

The Greek Minister of Finance recalled that the leadership of the Eurogroup, the European Central Bank, and the EU Commissioner for Economy and Finance approved the measures of the new Greek government to reduce the deficit.

"It is clear that Greece is under the protective" umbrella "of the euro, but this in no way is the reason for complacency.We do not expect that someone will come to save us," Papakonstantinou said.

He acknowledged the "crisis of confidence" with regard to Greece, caused by understating the real indicators of the budget deficit, and promised that the new government would restore this trust through structural reforms and reducing the deficit.

Papakonstantinou acknowledged that the Greek debt and the stock market are under speculative market pressure. "Yes, there are speculative games, we have to live with them ... Simultaneously, we take measures and do everything we can to ensure the viability of public finances in existing markets," the Greek minister specified.

"We're talking about a radical change in the tax system," said the head of the Ministry of Finance. According to him, a unified progressive tax scale will be introduced, taxation of companies will be reformed, tax exemptions will be abolished, and strict control over the compliance of tax declarations with real incomes of citizens will be introduced.

"We want the propertied to pay, and that the tax base be expanded by possibly reducing tax evasion, which is nothing more than an additional tax on a law-abiding taxpayer and, ultimately, the entire Greek economy," concluded Papakonstantinou.
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