Greece sells 10% shares of state-owned telecoms company to Deutsche Telekom

The Greek government has already exercised an agreement to sell 10% per cent of its state-owned telecoms company, OTE, to Deutsche Telekom at about € 400 million ($ 585 million), the latter said it would approve the agreement, Beijing time, June 7 morning. The ECB Executive board director, Lorenzo-Fubini-Smagi (Lorenzo Bini Smaghi), said in Monday that although the amount was small in the proportion of Greek debt amounting to € 330 billion (about 482 billion US dollars), the country had a value of € 300 billion (about 439 billion USD　　Can be sold, so it will not be in the state of bankruptcy. "Greece should be considered to be solvent and should be required to repay its debts," Smagi said. "His comments suggest that the ECB remains opposed to any plan to allow Greece to extend its debt, or any plan to force investors to accept a non full repayment." At the same time, Smagi was surprised by the detailed and forceful rebuttal of German leaders ' plans to push investors to bear the cost of helping Greece, because ECB officials would normally avoid public confrontation with government officials,　　This means that the debate between the ECB and eurozone governments over how to maintain Greece's debt repayment capacity is intensifying. Smagi points out that for eurozone taxpayers, a restructuring of Greek debt would have costly consequences that would only benefit speculators and hinder the modernisation of the Greek economy. "Restructuring sovereign debt can have serious consequences, both for creditor countries and for the economies of debtor countries," he said. The reorganization should be used only as a last resort, that is to say, when the creditor countries are clearly unable to repay their debts. "At present, many economists believe that a certain type of debt restructuring in Greece will be unavoidable." EU governments have begun to think more about such measures, with the aim of showing their own taxpayers that investors will also have to help repay Greek debt. Smagi, however, questioned the idea of an "orderly reorganization", saying: "In many cases, reorganization activities are disorderly, harmful and fraught with difficulties." "Smagi that Greece's restructuring of its debt will have many disastrous consequences, one of the possible consequences of which is that Greek banks will be destroyed, which requires the Greek government to allocate funds to rescue these banks, and in fact Greece could not come up with this money." In addition, these problems will spread to other countries with a risk exposure to the Greek economy, and taxpayers in these countries will eventually suffer. In addition, Greece does not have the resources necessary to make its economy more competitive. (Jinliang)