The National Herald top stories

IMF chief Lagarde: Little sympathy for Greece

Sat, 26 May 2012 09:29:15 EST

LONDON (AP) ? International Monetary Fund chief Christine Lagarde says she has more sympathy for poor African children than Greeks suffering under the country's economic problems and austerity measures. Making clear that the IMF has no plans to relent on its austerity requirements for the country, Lagarde said she was aware that many Greeks were struggling to access services like healthcare because of the country's economic crisis, but believed people in other countries deserved more sympathy. 'I think more of the little kids from a school in a little village in Niger who get teaching two hours a day, sharing one chair for three of them, and who are very keen to get an education,' she said in an interview with the U.K.'s Guardian newspaper published Saturday. 'I have them in my mind all the time. Because I think they need even more help than the people in Athens.'

Germany's Grass blasts treatment of Greece

Sat, 26 May 2012 09:27:27 EST

BERLIN (AP) ? German Nobel literature laureate Guenter Grass has criticized Greece's treatment by its fellow European nations in the debt crisis, describing it in a new poem published Saturday as a 'country sentenced to poverty.' The 84-year-old's latest work, 'Europe's Disgrace,' was published in the daily Sueddeutsche Zeitung less than two months after Grass triggered a storm of criticism with another intervention on a political issue ? a prose poem sharply criticizing Israel amid the dispute over Iran's nuclear program. Greece is struggling with austerity and reform programs demanded by creditors in exchange for rescue loans, an approach that Germany's government has championed.

Tourists Also Tell Greece 'No'

Sat, 26 May 2012 05:54:38 EST

By ALKMAN GRANITSAS and LAURA STEVENS ATHENS. (Wall Street Journal). ?Greece's tourism season was supposed to be a ray of sunshine amid the country's political crisis and depressed economy. Instead, the outlook is cloudy: Greek-vacation bookings from Germany and the rest of Europe are down sharply, as would-be tourists take fright at the prospect of strikes and street protests.The political uncertainty dogging Greece ahead of its June 17 elections

Companies Get Blunt Counsel on Greek Upheaval

Sat, 26 May 2012 05:49:27 EST

By STEPHEN CASTLE LONDON. (New York Times). ? What can companies do when the legally impossible becomes reasonably probable? Under European Union law, Greece cannot leave the euro. That is the theory. But in practice, any protection the law offers investors could be difficult to enforce, according to lawyers trying to protect their corporate clients against the upheaval sure to follow if Greece were to default on its debts and adopt a new currency.

George Demos Withdraws from Congressional Race

Fri, 25 May 2012 17:15:12 EST

Attorney George Demos announced his withdrawal on May 25 from the race to unseat Congressman Tim Bishop in New York's 1st district on Long Island. With demands on his time mounting as both his wedding to Chrysa Tsakopoulos next week and the Republican primary contest next month against businessman Randy Altschuler approached, Demos issued a statement to his supporters reaffirming his ?deep commitment to public service,? and adding, ?butour marriage comes first.? In his first run for Congressing 2010, his first ever campaign, Demos came in second despite being outspent ten to one by his two opponents, Altschuler, and the grandson of Richard Nixon and son-in-law of Greek American business mogul John Castimatidis, Chris Cox. ?We managed to surge at the end and we had tremendous support.?

Greek euro exit would be a recipe for hardship

Fri, 25 May 2012 17:12:47 EST

ATHENS, Greece (AP) ? As Greece creaks under its untenable debt and a shrinking economy, the possibility that it could stop using the euro is becoming increasingly likely. The effects of such a move would be as quick as they would be brutal for ordinary Greeks, who would essentially take a 50-percent pay cut just as prices soar. Here's a look at what else could happen: THE RETURN OF THE DRACHMA No other country has ever left the 17-country eurozone before and there are no procedures in the EU's vast rulebook that would push any country out. But one fear is that the Greeks could decide to vote in an anti-austerity government on June 17 that may then decide to renege on the terms of the multi-billion-euro bailout which has been keeping the country afloat. Greece could be then forced into a messy exit from the euro bloc.

Cyprus Airways Board promotes rescue plan

Fri, 25 May 2012 11:54:53 EST

Discussions with Cyprus Airways trade unions need to conclude by the end of next week, in order for the Cypriot Parliament to proceed with a draft bill providing for the company?s share capital increase by 45 mln euro, CA Executive Chairman George Mavrocostas said today. The government, who owns the majority of the company?s shares, announced th

EU bailout cannot be excluded, Cyprus CB Governor says

Fri, 25 May 2012 11:54:23 EST

New Cyprus Central Bank Governor Panicos Demetriades did not exclude the possibility for Cyprus to seek entry to the European bailout mechanism (European Financial Stability Facility - EFSF), in a bid to support the recapitalization efforts by Cyprus Popular Bank (CPB) following the Greek sovereign debt haircut. Heavily exposed to Greek sovereign debt CPB, which posted record losses in 2011 following the write down of Greek bonds, needs to secure 1.97 billion euro to increase its Core Tier 1 capital to 9% as set out by the European Banking Authority.

Spokesman: Turkey is to blame for the 'isolation' of Turkish Cypriots

Fri, 25 May 2012 11:53:45 EST

Turkey is responsible for creating conditions of ?isolation? for the Turkish Cypriots, Government Spokesman Stephanos Stephanou said on Friday, in a response to statements by the Turkish Cypriot leader Dervis Eroglu. Moreover, Stephanou criticized the Turkish Cypriot side for being obstructive in the negotiations between the two sides for the solution of the Cyprus problem.

Spain's Bankia asks for $24B in state aid

Fri, 25 May 2012 11:45:42 EST

MADRID (AP) ? A large Spanish bank that was taken over by the government will ask for more state rescue money on Friday, bolstering calls for a coordinated relief plan for Europe's fragile financial sector. Bankia, the country's fourth-largest lender, asked that trading in its shares be suspended all day while its board determined how much new