Norway Stops Aid Payments To Greece

Tyler Durden's picture

And here comes the first domino: according to Swiss journal NZZ, the Greek bailout is about to take a turn for the worse. "Norway will first stop all further financial aid payments to the highly indebted Greece. The reason is that Greece does not fulfill its obligations descendants, the Norwegian Foreign Minister Jonas Gahr Store said on Thursday before the Parliament." And with Norway which is a member of the European Economic Area, and actually one of the few solvent and non-basket case European countries saying let the chips fall where they may, it is just the first. Look for every other country currently on the sidelines vis-a-vis Greece (and just as insolvent) to follow suit as the European experiment falls apart.

From NZZ (google translated):

orway felt obliged to make payments to Greece until further adjust. He was "sad" about the decision because he does not aggravate the situation in Greece which would, Norway got no choice.

Norway is not an EU member, however, belongs to the European Economic Area (EEA). About this country is paying the money to compensate for economic and social disparities in Europe.

Aid does not reach receiver

As the EEA Iceland and Liechtenstein members suspect the country that its financial aid to Greece did not go to the intended recipient, reported the Norwegian news agency NTB.

Thus Athens is not following its obligation to fund under the financial assistance provided for projects to 50 percent with their own money. Of the grants of 248 million Norwegian crowns (39 million), which was originally for Greece are, so far only 13 million had been disbursed, reported NTB. The rest remains now frozen.

Look for the EUR not to be happy at all with this sudden and very much unexpected escalation.

h/t Alexander Gloy