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

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Badabing's picture

No more suvloki for you!

Josh Randall's picture

If Norway gets up, we'll all get'll be anarchy

kridkrid's picture

Screws fall out all of the time.  The world is an imperfect place.

Vincent Vega's picture

Impossible sir, it's in Johnson's pants.

SheepDog-One's picture

'Claaaiirre'? Thats a fat girls name.

kridkrid's picture

what am I???  What am I???  I am a walrus.

TheDriver's picture

Norway: Eat... My... Shorts.
: You just bought yourself another Saturday.
: Ooh, I'm crushed.
: You just bought one more.
: Well I'm free the Saturday after that. Beyond that, I'm going to have to check my calendar.

andybev01's picture


The Breakfast Club.

oogs66's picture

Default/Restructuring is the correct option for Greece

zen0's picture

Only after they can squeeze every last Euro out of the situation.

Ray1968's picture

The irony of the Greeks about to get it in the ass.

Oracle of Kypseli's picture

That's wrong. After Greece got the EU to give them free money for their stupidity, they will default and start over clean just like Iceland. Now who is getting it in the derriere?

Ray1968's picture

I think there is a BIG difference between Greece and Iceland. The EU will never allow Greece to have a start over. They will pay and pay dearly!

Just look at how many attempts there have been to make Iceland's citizens pay for the failure of a private bank! Thankfully their people have told the EU to go pound some sand.

Rick64's picture

 Iceland hasn't started over. They didn't default on the IMF loans and are presently recieving more. The only thing that they defaulted on was reimbursing European depositors of Icesave (Landsbanki) and Landsbanki's debts. 

Swain's picture

European depositors were reimbursed by their respective governments (UK, NL) which are in turn being paid for their outlays by the sales of the assets of the defunct Landsbanki. 

achmachat's picture

This idiom doesn't apply to the Greek.

it's nothing unpleasant to them.

HamyWanger's picture

I'm ready to bet 100,000 US dollars that Greece will never default.

topcallingtroll's picture

AS long as you include "voluntary" restructuring as a default you are on.

Clockwork Orange's picture

and liability management exercises

topcallingtroll's picture

AS long as you include "voluntary" restructuring as a default you are on.

Ethics Gradient's picture

That's not a bet! Greece defaults and shortly after the dominos stop falling 100,000 dollars becomes what you need to buy a beer. Put your money where your mouth is, man!

equity_momo's picture

I'll take that bet. Seems like i've got no downside , never is along time.

Dr. Kenneth Noisewater's picture

And by the time you can pay out, those $100,000 will buy a tank of diesel.

Rick64's picture

I'm ready to bet 100,000 US dollars that Greece will never default.

 Would that be internet bucks bet under an anonymous name on a blog site?

EscapeKey's picture

Might be the 'correct' option, but DSK was forced out for a reason.

downwiththebanks's picture

+1.  Not only that, but the Hit Men who pulled it off managed to take the heat off of Apartheid Israel on Nakba day.

A Two-fer.

ElvisDog's picture

How can anyone blame Norway? The only reason to continue to keep lending money to Greece (although this story says it's aid) is if there was some reasonable expectation that Greece would get its act together and be able to pay back the debt. Lending money to a country that has a structural, long-term deficit is throwing money down a rat hole (and, yes, I'm aware of the analogies to the U.S.)

Sqworl's picture

Falafel Failure!!!


andybev01's picture

+10, thanks for the chuckle.

Clockwork Orange's picture

Poof, goes the illusion.

Charlie's picture

Not sure this is such a big deal.

Norway is not part of the European Union.

mayhem_korner's picture

That makes it a bigger deal.

Jim in MN's picture

Over on RAN Squawk it says: IMF says an Increase in Ireland's corporate tax rate is not consistent with goals of the EU/IMF program

I would call that bureaucratese for 'let them eat cake'....

Quintus's picture

The IMF is aligning itself in this instance with the Irish and against the EU leadership, primarily France.  Most Irish people understand that the only reason Microsoft, Google, Oracle, Pfizer etc, etc, etc. have their European bases in Ireland is for the 12.5% Corporation Tax rate.

Raising that rate may make the French feel better, but it will not, in all likelihood, raise additional tax revenue for Ireland.

Jim in MN's picture

Layers...Here is a snippet of debate from ZH back in March--Irish contributions on the topic:

by Ferg .
on Thu, 03/10/2011 - 13:33


As a citizen of the Emerald Isle I can tell you , unequivocally , that there is absolutely no chance in the darkest corner of hell that the government here will agree to raise the corporate tax rate . It was Labour who introduced it back in the 1990's and both coalition parties campaigned for the ratification of the Lisbon Treaty with assurances that the rate would not be changed . It's an issue that garners quite a bit of attention over here and any attempt to alter the status quo would likely create quite the political/media shit storm .

on Thu, 03/10/2011 - 13:41

It actually goes back to the 50s but Europe quite rightly forced us to tax global and local corporations at the same rate.

The Irish banks made huge profits from this rule change however (before the bust)

Never a fan of it myself given the huge distortions in the local economy it creates yet we have grown so dependent on this it would rip out all the industry in the country.

We really have a elephant man type economy - global corporations yet no fishing industry.

This was one of the reasons why Iceland could go tell the bankers  fuck off as they still had internal capital to draw on - we have become too globalised to make independent waves.

by Ferg .
on Thu, 03/10/2011 - 16:06

Yes I was thinking that myself . We've become hugely dependent on it and if it was altered I don't think the large multinationals would be sticking around for the pleasant weather . It's lustre is fading as well now that we've got more competition from Eastern Europe , but in the current economic climate there's no chance it'll be hiked .

Agreed we're very dependent on exports right now . Export strength has been mentioned on countless occasions by analysts and politicians as a pillar of recovery but that's a very dangerous scenario to place your faith in . One in which we're at the mercy of exchange rate fluctuations and shifts in foreign demand patterns . I suppose that's the price everyone pays for globalization participation though . Great in the boom years , a disaster when it all hits the fan .

on Thu, 03/10/2011 - 16:36

A country with a extreme trade surplus is a colony pure and simple - we have nearly always had a surplus at least since the late 80s.

Since the mid 90s its gone crazy and therefore we are a jurisdiction of extreme profit for certain individuals and corporations.

There is nothing wrong with trade defecits if you can import physical capital and capital building structures that can sustain real long term wealth.

We imported decking.

A Man without Qualities's picture

Hey, Greece, I think Norway just called you a cunt....


TheTmfreak's picture

Also implicitly stating that the Euro bail out countries are fucking retards.

knowless's picture

sverige kommer inte betalar!

best google translate could give me.

any swedes have an on the ground perspective on this?

Jack Burton's picture

Sverige kommer inte att betala!

Sweden is not going to pay!

breezer1's picture

the only spin that can be applied here will be in the google translation.

youngman's picture

Greece new they were going to default years ago....they just want to use the system and steal as much as they can until they do...I would too...if you are that stupid to give me money when I am broke...and have no way of paying you back...then give it to me baby

andybev01's picture

Ah, I see. Your real name is America?

richard in norway's picture

this could be bigger than people think, the greeks are not the only ones getting this money from norway. easten europe also gets a lot of dosh and they are in a nasty place, the arab spring could easily become the easten block autum

Jack Burton's picture

 richard, Seems like the whole world is approaching a nasty place. Let food prices continue to increase and a few more large natural disasters come our way and trouble will spread.

Zero Govt's picture

the withdrawel of credit (aka Norways two fingers to Greece) ushers in deflation of prices, not inflation the prices of yoghurt from here!

DaBernank's picture

NOK is only currency I would own willfully (as in I am forced to transact in EUR & USD). Bravo for them.

Use of Weapons's picture

Turns out the Grandma doesn't give you everything you want in life...