The Strategist

Varoufakis Spills the Beans

07/28/2015 - 15:24

Former Greek Finance Minister Janis Varoufakis is again in the spotlight of the world media. As it turned out, Varoufakis has been actively preparing Greece to the parallel payment system in the event of loss of access to the ECB's liquidity program.

eco LogicOS via youtube
eco LogicOS via youtube
Before the Prime Minister Alexis Tsipras agreed with the requirements of the lenders, despite the results of the referendum, Greece was very close to the introduction of bills and a return to the drachma. This is evidenced by records of Varoufakis’ negotiations with a large group of hedge funds.

Earlier, the former minister said that the introduction of bills, denominated in euros was necessary, which would make it possible to save the banking system.

CA has released a similar IOUs to pay for contractors on the background of problems with liquidity after the collapse of Lehman in 2008. Varoufakis insisted that it is not a prelude to Grexit, but this statement denies an inviolable sanctity of the monetary union. In other words, Greece is part of the euro zone, but is not using the euro.

It is possible to defend the rights of Greece in the court as a member of the Eurozone. If the lenders try to announce they would exclude Greece, they will do so illegally, which means subsequent claims of infringement in London, New York and Frankfurt.

Varoufakis was an opponent of the reform program required by lenders, and this was the main reason for the failure of negotiations in the spring and early summer. After failed to get support of SYRIZA to use Grexit as a bargaining chip, Varoufakis resigned in early July.

Fearing slander on the part of his political opponents, he told all about 'Plan B' for the Greek economy, which failed.

Varoufakis hoped to launch an alternative financial system, committing a hack of Tax Payment Service. The ex-minister calls the hidden attack on the system " hacking" and to some extent recognizes that such a move would be illegal.

A publication eKathimerini, as well as the organizer of the conference published The Official Monetary and Financial Institutions Forum (OMFIF), with permission of Varoufakis, published recordings of the teleconference, which took place on July 16.

At the same time, during the teleconference, the former Minister noted that the information is confidential and promised to deny everything if someone blabs.

When the negotiations between Greece and its creditors have reached an impasse, the development of emergency response plan in the form of a script for Grexit intensified. The scheme was planned to be made secretly by Varoufakis and a small group of people using the web site of the Greek tax system.

- We had planned to secretly establish reserve accounts attached to each tax ID, without telling anyone, just to keep the system quiet. And one push on the button, and we would be able to save each taxpayer's tax number, - said Varoufakis and noted that Tsipras gave him the green light to create the "plan B" when he won elections in January.

According to the plan, such a payment system should be well developed and planned to use phone apps, and then it would become a full-fledged parallel system. It would be nominated in euros, but if necessary, had the opportunity to tie itself to a new drachma.

However, the preparation of parallel payment system was not easy.

Varoufakis said that a childhood friend helped to carry out the plan, but the problem was that the tax system was controlled by Brussels.

Then it was decided to break the program of the Ministry of Finance of Greece, in order to be able to just copy the site code of the tax system to make it work, as the former, within the framework of the parallel system.

It seems that the exit of Greece from the euro zone is now prevented, but Varoufakis said that there’s still a risk of Grexit.


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