Brussels - President of the Eurogroup and Dutch Finance Minister Jeroen Dijsselbloem says there is no need to discuss fresh aid for Greece, which has been bailed out twice before, before autumn 2014.

"If the current programme is fulfilled, then further disbursements can take place by May, which will take [Greece] through to August," said Dijsselbloem on Monday.

Speaking to the press after a meeting of 18 Eurozone finance ministers, with Greece high on the agenda, Dijsselbloem stated that they could talk about the future of Greece in August.

"The debt has to be reduced and that is precisely what we will talk about after the summer," Dijsselbloem noted.

Noting that the official EU figures on the Greek budget position are due at April's end, the chairman of Eurozone ministers said the Troika would return to Athens later this week.

The European Union, the European Central Bank and the International Monetary Fund (IMF), known as the Troika, review every three months Greece's progress in putting its finances in order and reforming its economy in exchange for the loans, which are disbursed in tranches.

Greece fell into recession after the collapse of US bank Lehman Brothers in 2008, which sparked a Europe-wide debt crisis the following year.

The EU and IMF provided 110 billion euros in bailout loans to Greece, to help the government pay its creditors in 2010.

A second 130 billion euro bailout was provided in 2012.

According to estimates, Greece will need four billion euros in additional finances this year.

The IMF announced in July its estimate that Greece will need about 11 billion euros (US$14.5 billion) in additional financing in 2015.

Struggling to meet the terms of the second package, Greece claims it has done enough to satisfy the 'Troika', especially in achieving a "primary budget surplus" -- that is, a budget in the black before debt costs.

Greece's Prime Minister Antonis Samaras told German newspaper Bild on February 10 that Athens does not require a third bailout as they are reaching the goals of our current program and its results show.

Most of Greece's private-sector creditors agreed to write off about three-quarters of the debts owed by Athens and to replace existing loans with new loans at a lower interest rate.

In 2013, the EU estimated that Greece would emerge from its recession in 2014 and projected solid growth of 2.9 percent in 2015 if Greece maintains its current path. – SAnews.gov.za-Anadolu Agency

Business has welcomed President Jacob Zuma’s sixth State of the Nation Address (SONA).

“Business Unity South Africa (BUSA) is pleased at the reaffirmation of the National Development Plan (NDP) that aims to address the three social evils of inequality, poverty and unemployment. We remain less optimistic about the effective implementation of the NDP,” said BUSA in a statement on Friday.

Zuma delivered his State of the Nation Address to a joint sitting of Parliament on Thursday evening. He punted the NDP as a viable plan to drive South Africa’s socio-economic development for the next coming years.

According to the plan, South Africa can realise these goals by drawing on the energies of its people, growing an inclusive economy, building capabilities, enhancing the capacity of the state, and promoting leadership and partnerships throughout society.

Zuma said there now were 15 million people with jobs in the country but that this was not good enough and that the unemployment rate remained high.

“Youth unemployment in South Africa continues to be of concern, as it is throughout the world. We are taking a number of measures, including the Employment Tax Incentive Act which encourages employers to hire younger workers,” said the President in his address.

BUSA welcomed measures to address the matter.

“In a climate of weak economic growth, incentives of this nature encourage youth employment .The commitment to slash red tape, bureaucracy and to also ensure overall improvement in regulatory impact assessment will assist improve the investment environment,” said BUSA CEO Nomaxabiso Majokweni.

Sacci also welcome the affirmation of the National Economic Development and Labour Council (Nedlac) as a key institution for effective social dialogue between business, government and labour.

The South African Chamber of Commerce and Industry (Sacci) also welcomed the optimistic tone of the Presidential address, including the calls for greater stability in industrial relations in the mining sector and the positive contribution of government mediation in the sector.

Sacci also welcomed progress made on the country’s infrastructure development plan.

The business community it said looked forward to further development that would support economic and greater participation of the private sector in infrastructure development.

“Sacci appreciates the President’s commitment towards building a dynamic and inclusive economy, especially the promise to work more closely with business and looks forward to strengthening this productive relationship in 2014,” said Sacci CEO Neren Rau. - SAnews.gov.za

Businesses around the Parliamentary precinct have been profiting throughout this week, ahead of the State of the Nation Address (SONA) to be delivered by President Jacob Zuma tonight.

As workers around the Parliamentary precinct tied loose ends in preparation for the red carpet to be rolled-out for Zuma ahead of the annual speech, businessmen along Plein Street said they will be smiling all the way to the bank as the event has brought them more customers.

Restaurant owners – from curry outlets to fish and chips joints – said the revenues had more than doubled throughout the week as Cape Town once again opened its doors to politicians, businessmen and journalists who descended on the City to be part of the event.

This year’s SONA will mark 20 years of democracy – and the last speech of Zuma’s current five year administration.

Ahmed Shafik, one of the businessmen, said he had extended his working hours to serve more empty bellies.

“This time of the year, business is just good. We usually extend even our business hours at this time because the demand is just high.

“On a normal day, I close my shop at 4pm, but during this time I open until 7pm,” he said.

Another businessman, Nainesh Pillay said: “I always look forward to this period of year because this is the most profitable time and being a small businessman, this is good for business,” he said.

Several people were also seen selling white t-shirts with the face of the late former South African President Nelson Mandela. Mandela died in December last year, aged 95.

Expectations of the speech on Thursday range from jobs, the National Development Plan to infrastructure development and housing delivery.

Security guard Andile Mgijima said he would like the President to focus explaining how the NDP would make South Africa a better place in years to come.

“We know now that there is this plan - but I hope he can explain as to how it will affect all of us in a positive way. I also want to hear how employment has been created in the past year because to many of us, that is important.”

In the Parliamentary precinct, workers are putting final touches along Parliament Street, along the route where a red carpet will be rolled-out for President Zuma, dignitaries and other guests, who will be part of the event. – SAnews.gov.za

Kempton Park – Trade and Industry Minister, Dr Rob Davies, says the private sector should join government’s move towards buying locally produced goods to stimulate domestic economic growth. Proudly South African Buy Local Summit Speaking at the third annual Proudly South African Buy Local Summit on Monday, Davies said creating jobs and addressing poverty required [...]Private sector urged to buy local is a post from: South Africa Business



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In order to effectively address the plight of the African continent, a major shift and transformation in traditional mining is required, says...

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Increasing the rail network will not only relieve the country’s roads but will be good for the economy too, Public Enterprises Minister Malusi Gigaba says.

“Six thousand, four hundred and five kilometres of rail will have been replaced [on] the general freight, coal and ore lines, increasing the rail network by 149.7 million tonnes,” he said at SABC-The New Age breakfast briefing on infrastructure on Monday.

“Existing logistics corridors will be expanded and new ones will be established, and 1 317 new locomotives and 25 000 new wagons will be procured (over the next five years),” he said.

The move will improve the country’s capacity to industrialise the economy as well as the ability to export manufactured goods.

“We will be able to increase our exports of coal by over 50%. Our ability to move general freight on rail will have more than doubled in capacity and Transnet’s container handling capacity will increase by 75%. The dramatic increase in our rail infrastructure will have a positive impact on our roads and will reduce the burden carried by many roads,” Gigaba said.

This will improve the efficiency and safety of roads and has positive spin-offs for the economy.

On the issue of black business, Brian Dames, the outgoing CEO of Eskom, said that the power utility was serious about helping black business to bloom. Additionally, Eskom has finalised the design of a fund for developing mines to assist emerging black miners.

"By 2015, we will ensure that over 50% of coal to Eskom comes from black miners,” said Gigaba.

Procurement of goods needed to benefit the country and should have elements of localisation, said the minister.

On the national carrier, South African Airways (SAA), the minister said the entity will return to profitability.

"Last year, we said we expected that the airline will continue to make losses over the next three to five years. We will turn the corner as we move to improve and ensure that the turnaround strategy is implemented."

In 2012/13, SAA saw a loss of R900 million.

SAA last year unveiled a turnaround strategy that included the consolidation of routes and the upgrade of the carrier’s fleet.

Over the last 18 months, SAA had taken delivery of five new aircraft.

“We are gradually taking delivery of the new aircraft,” said Gigaba. – SAnews.gov.za

An Taoiseach, Enda Kenny T.D. this week launched UPC’s new 500 Mbps superfast broadband service which will be offered to businesses across the country, more than doubling currently available speed offerings, making a significant contribution to regional economic development and powering the digital economy. UPC’s unprecedented new 500 Mbps service will first be made available [...]New UPC Broadband For Businesses is a post from: Ireland Business



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The Shackleton Lounge a new purpose-built innovation space was opened by the Innovation Academy, UCD on Friday.*** Located in the O’Brien Centre for Science at the heart of the Belfield campus, the new innovation space will act as a catalyst for innovation and will be the home of students of Innovation, Entrepreneurship and Enterprise at [...]Shackleton Lounge Opened by Innovation Academy is a post from: Ireland Business



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ECDC loan turns around the fortunes of a local business. An R800 000 Eastern Cape Development Corporation (ECDC) loan has helped to turn around the fortunes of a local filling station. The Mtembu family’s Caltex filing station in Ulundi has in less than two years become an award winning business that has seen a 20% [...]ECDC loan turns around business is a post from: South Africa Business



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The Reserve Bank has hiked up the repo rate to 5.5%.

“The MPC [Monetary Policy Committee] has decided to increase the repurchase rate by 50 basis points to 5.5 % per annum as of 30 January 2014,” Reserve Bank Governor Gill Marcus said following the first MPC meeting of the year.

The repo rate - which is the scale at which the bank lends money to commercial banks - has up until today been unchanged at 5% since July 2012.

Market expectation was for the repo rate to remain unchanged.

“While we would admit that the outcome of the MPC meeting today has become a closer call, our base case remains for the bank to stay on hold. There can be little doubt that pressure on the rand, since the central bank’s November MPC meeting, has in isolation increased the risk of tightening from the Reserve Bank,” said Standard Bank earlier today in a research note.

It was the view of the MPC that withstanding the increase in the repo rate, monetary policy remained accommodative.

The exchange rate, said Marcus, has resulted in a market increase in the upside risk to the inflation forecast.

Since the last MPC meeting in November 2013, the rand has depreciated by about 7.4% against the US dollar. Year to date, the rand/dollar depreciation has been about 3.5%.

Though the recent rand weakness is part of a general emerging market phenomenon, it has been reinforced by factors including declining terms of trade, on-going labour disputes, and the higher-than-expected current account deficit in the third quarter.

The central bank’s forecast for growth in 2014 and 2015 has been revised to 2.8% and 3.3% respectively, down from 3% and 3.4% in the previous forecast.

Inflation forecast indicated the possibility of inflation falling out of the bank’s target range (of between 3% and 6%) for an extended period, largely due to the impact of the depreciating currency.

“The risks to the inflation forecast are seen to be significantly on the upside. Large adjustments to the exchange rate will inevitably impact on inflation, even in conditions of relatively low pass-through such as we have been experiencing,” noted the central bank.

Inflation is expected breach the upper end of the target range in the second quarter of 2014, reaching a 6.6% peak in the fourth quarter of 2014.

Additionally, the bank expects the petrol price to increase in February. – SAnews.gov.za