Norway-Greece funds freeze rocks Euro / News / The Foreigner

The Foreigner Norway-Greece funds freeze rocks Euro. Euro-area debt concerns sparked by last week’s Greek grant freeze continue to cause problems for the single currency this week. The Euro fell 0.7 percent today against the Nikkei benchmark average to 9,540.57. This comes only several days after it recorded its lowest drop against the US dollar for seven weeks after Norway, Iceland and Lichtenstein suspended a 235 million kroner ($42 million) grant to Greece on May 19.   Greece’s remaining 2004-2009 European Economic Area (EEA) grant for economic and social development projects was frozen for an undetermined period because it failed to participate with its fair share of investments. 13 million kroner has been paid out to date.

jonasgahrstoere, eurocurrencyfalls, eea



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Norway-Greece funds freeze rocks Euro

Published on Monday, 23rd May, 2011 at 09:41 under the news category, by Ramona Tancau.

Euro-area debt concerns sparked by last week’s Greek grant freeze continue to cause problems for the single currency this week.



The Euro fell 0.7 percent today against the Nikkei benchmark average to 9,540.57. This comes only several days after it recorded its lowest drop against the US dollar for seven weeks after Norway, Iceland and Lichtenstein suspended a 235 million kroner ($42 million) grant to Greece on May 19.  

Greece’s remaining 2004-2009 European Economic Area (EEA) grant for economic and social development projects was frozen for an undetermined period because it failed to participate with its fair share of investments. 13 million kroner has been paid out to date.

Norwegian Foreign Minister Jonas Gahr Støre announced, “Greece had committed to paying 50 percent of each project. This was not followed up. It’s also unclear whether the money already transferred to the Greek authorities was forwarded to the appropriate recipients.”

Concerned about Greece’s economic performance, the European Central Bank has forecasted Greek national debt might reach 158 of its GDP by the end of this year, with a possible budget deficit of 9.5 percent. This is two percentage points higher than the EU bailout target deficit for 2011.

International trust in Greece’s financial performance is dropping. Fitch Ratings downgraded the country’s credit ratings by three levels to B+ from BB+, four points short of investment grade.

“I see the downgrade as a response to the continued deterioration of Greece’s fiscals and the need for further significant austerity measures,” fixed- income strategist at Credit Agricole SA in London, Peter Chatwell, told Bloomberg.

 The EEA grants, available to 15 of the EU countries, finance projects in the areas of climate and environment, civil society, tripartite cooperation, industry, research, and guarantee Norway’s access to the EEA market.

“Norway cannot tolerate regulations violations, and we have asked Greek authorities to get their house in order and document how the money was spent,” said FM Støre.



Published on Monday, 23rd May, 2011 at 09:41 under the news category, by Ramona Tancau.

This post has the following tags: jonasgahrstoere, eurocurrencyfalls, eea.





  
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