Wednesday, 30 November 2011

Kenya shilling slips vs dollar, seen firming


Wed Nov 30, 2011 8:00am GMT
 
NAIROBI, Nov 30 (Reuters) - The Kenyan shilling 
slipped on Wednesday as oil sector importers took advantage of a
rally in the previous session to buy dollars, but traders there
was support for the local currency as liquidity tightens due to
high interest rates. 
    The shilling, which is about 16 percent off an all-time low
of 107 hit on Oct 11, firmed as much as 1.6 percent on Tuesday
to touch a 21-weeks high of 89.00/10 aided by commercial banks
trimming long dollar positions. 
    At 0721 GMT on Wednesday, commercial banks quoted the
shilling at 89.40/70 against the dollar, weaker than Tuesday's
close of 89.25/45. 
    "We are seeing some month-end dollar demand from the oil
sector," said Bhavin Chandaria, a trader at Imperial Bank. 
    "We don't expect the weakness to last as banks are still
selling dollars. No one wants to hold dollars at these high
rates." 
    The return for holding shillings has soared, with the
interbank rate at 30.3434 percent on Tuesday, after the central
bank increased its benchmark lending rate to 16.5 percent from 7
percent over just two months.  
    Investors lose out on that return if they hold onto dollars. 
    Analysts and traders expect the central bank's rate-setting
committee to maintain its hawkish stance when it meets on Dec.1
in order to check inflation, which rose for a 13th straight
month to 19.72 percent in November. 
  
    "With the inflation number rising to 19.72 percent, markets
will keep an eye on the MPC meeting scheduled for this week for
any signs of further tightening," said Bank of Africa in a daily
report. 
    "If the authorities increase the CBR (central bank rate) and
... increase CRR (cash reserve ratio) next month, the local unit
could make further gains against the dollar this week." 
    The Central Bank of Kenya said in its last policy decision
it would raise the cash reserve ratio for banks by 50 basis
points to 5.25 percent from Dec. 15.  
               ...........................Shilling spot rates 
 
                  .....................Shilling forward rates 
 
                           .......................Cross rates 
 
         ..................................Local contributors 
 
           .......................Central Bank of Kenya Index 
 
          .....................Kenyan Bonds contributor pages 
 
                          ...............Treasury bill yields 
 
        ..................Central bank open market operations 
 
        .........................Horizontal repo transactions 
 
         ,       ................Daily interbank lending rate 
 
              .............................Kenya Bond pricing 
 
             ..................Real time Africa economic data 
 
  ...........................African economic news
          .................................NSE-20 Share Index
         .................................NSE All Share Index
             ...........................FT NSE Kenya 15 Index
             .......................... FT NSE Kenya 25 Index
  SPEED GUIDES:
                                    
            
  
 (Reporting by Kevin Mwanza; Editing by Yara Bayoumy)

Nigerian senate passes anti-gay bill, defying British aid threat


November 30th, 2011
04:33 AM ET
The Nigerian senate has passed a bill banning same-sex marriages, defying a threat from Britain to withhold aid from nations violating gay rights.
The bill by Africa's most populous nation calls for a 14-year sentence for anyone convicted of homosexuality. Anyone who aids or "abets" same-sex unions faces 10 years in prison, a provision that could target rights groups.
It goes to the nation's House of Representatives for a vote before President Goodluck Jonathan can sign it into law.
"It would place a wide range of people at risk of criminal sanctions, including human rights defenders and anyone else - including friends, families and colleagues - who stands up for the rights of lesbian, gay, bisexual or transgender people in Nigeria," Amnesty International said in a statement.
The bill passed Tuesday comes nearly a month after British prime minister, David Cameron, threatened to withhold aid from nations violating gays rights, sparking outrage in Africa where leaders interpreted it as "colonial" display of power.
Homosexuality is illegal in most African countries based on remnants of sodomy laws introduced during the British colonial era and perpetuated by cultural beliefs.
Punishments across the continent range from fines to years in prison.
"This is something we raise continually and ... we're also saying that British aid should have more strings attached in terms of 'do you persecute people for their faith or their Christianity or do you persecute people for their sexuality?" Cameron said in a statement.
"We don't think that's acceptable. So look, this is an issue where we want movement, we're pushing for movement, we're prepared to put some money behind what we believe."
Soon after his remarks earlier this month, a flurry of African governments released defiant statements accusing him of undermining their sovereignty and culture.
FULL STORY

The Eritreans In Woyane government of Ethiopia

Filed under: Ethiopia,Meles Zenawi — ethiopiantimes @ 9:36 am 

Meles Zenawi and his Woyanne junta have a disturbing, and some times comical, obsession with Eritrea. They blame the Eritrean government for every bad thing that is happening to them. They like to call their opponents, such as myself, Eritrean. I am not Eritrean, but many of the Woyanne top leaders are full or half Eritreans. So one may ask, why are Woyannes extremely obsessed with Eritrea? The answer: 1) They consider Eritrea as the biggest threat to their rule, 2) As mental midgets they suffer from inferiority complex; and 3) Since Meles and many of the top Woyannes are Eritreans, they feel that their “Greater Tigray” plan must involve Eritrea.
The following is a list of Eritreans in the top echelon of the Woyanne junta.
Meles Zenawi, half Eritrean and naturalized Yemeni, the grand wizard of the TPLF junta
Bereket Simon, full Eritrean, the unimaginative Woyanne propaganda chief who keeps a copy of Joseph Goebbels’ Propaganda Manual under his pillow
Debretsion Gebre-Mikael, half Tigrean, half Eritrean, TPLF politburo member, radio, TV, and Internet jammer
Samora Yenus, half Sudanese, half Eritrean, Woyanne military chief of staff
Tewodros Adhanom, full Eritrean, TPLF politburo member, health minister
Tewodros Hagos, full Eritrean, TPLF politburo member, supervisor of the Eritrean opposition groups, head of political affairs for Tigray region (nothings happens in Tigray without his knowledge — president of Tigray Abay Woldu reports to him)
Isayas Woldegiorgis, full Eritrean, Woyanne chief assassin (carries out Meles Zenawi’s assassination orders), deputy head of national intelligence (but has more power than national intelligence and security chief Getachew Assefa)
Fasil Nahom, half Eritrean, half Jewish, legal adverser to Meles Zenawi
Neway Gebreab, full Eritrean, economic adviser to Meles Zenawi
Yemane Kidane (Jamaica), full Eritrean, former TPLF CC member, became multimillionaire over night, currently personal adviser to Meles and Azeb Mesfin, invests their loot abroad
The above is a partial list. The Woyanne security apparatus particularly is filled with full or half Eritreans

Al-Shabaab Announcement in Somalia

   
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Nov 30, 2011 (M2 PRESSWIRE via COMTEX) -- Mark C. Toner Deputy Spokesperson , Washington, DC
The United States is extremely concerned by al-Shabaab's announcement yesterday that it is banning a number of United Nations (UN) agencies and international nongovernmental organizations from providing life-saving assistance in south central Somalia and by its seizure of offices, property and equipment belonging to these organizations. We join the UN Secretary General and the UN Under Secretary-General for Humanitarian Affairs and Emergency Relief in condemning these actions in the strongest possible terms.
Al-Shabaab's actions put at even greater risk the lives of the four million people in Somalia who remain in need of emergency assistance and the 250,000 of those who are suffering from ongoing famine.
The only purpose of the humanitarian organizations working in Somalia is to save lives. We join the international community in calling upon all parties to respect international humanitarian principles and immediately allow these organizations full and unhindered access to all who require emergency assistance in Somalia.
((M2 Communications disclaims all liability for information provided within M2 PressWIRE. Data supplied by named party/parties. Further information on M2 PressWIRE can be obtained athttp://www.presswire.net on the world wide web. Inquiries to info@m2.com.

Somalia: Suicide bomber in Somalia tries to attack army HQ


About:- 4 mins ago| 0 Commnets
body of the young guy, identifies as suicide carried out - Photo: Somali Government
A Somali officer says a suicide bomber dressed in a military uniform tried to enter the headquarters of the Somali army in Mogadishu but was shot dead by troops.
Lt. Hassan Hussein said seven Somali troops were wounded after the bomber detonated the explosives on Tuesday. Hussein says that only the bomber was killed.
Al-Qaida- linked militants with the al-Shabab group have carried out several suicide bomb attacks in Mogadishu.
Somalia’s weak military is backed by 9,000 troops from Uganda and Burundi who are fighting al-Shabab as part of an African Union peacekeeping force.
Source: Associated Press

Tuesday, 29 November 2011

The irresistible rise of the Muslim Brothers


An anti-government protester and member of the Muslim Brotherhood prays in front of soldiers at T
An anti-government protester and member of the Muslim Brotherhood prays in front of soldiers at Tahrir Square, Cairo, February 2011. Photograph: Getty Images
Fawas Gerges
The Statesman
November 28, 2011
For years, the west has feared the Muslim Brotherhood succeeding to the highest levels of Egyptian political power. With Islamists poised to win the lion’s share of seats in Egypt’s election, is the nightmare about to become reality?
Since the ousting of President Hosni Mubarak in February, a political struggle has raged in Egypt along ideological, generational and class lines. The fall of the authoritarian wall, built more than half a century ago, has led to a reawakening, a revival of mass politics and social mobilisation. In this context, although initially welcomed as saviours, Egypt's military rulers have miscalculated monstrously by resisting the transition to civilian rule and tightening their grip on power. Tens of thousands of Egyptians have risen in revolt against the military council in recent days, sending a clear message about the changed mood and the psychology of the people. At the same time, after decades of being outlawed and persecuted, religious activists, or Islamists, have emerged above ground as a pivotal force, openly mobilising their old supporters, who number in the millions, and recruiting new members.
Of all the Islamist groups, the Muslim Brotherhood has the broadest base, with a membership of about half a million and a formidable political machine. Founded in 1928, the organisation did not participate actively in the protests that drove Mubarak from power, but it has mobilised its followers ever since in a newly formed political party, Freedom and Justice. Positioning itself as a voice for the poor, a huge constituency representing almost half of Egypt's 82 million people, the Brotherhood aims to win 40 per cent of the seats in par­liamentary elections scheduled to begin on 28 November. Whatever the outcome, the Brotherhood will be a dominant player in post-Mubarak Egypt and will shape the country's domestic and international relations.
The Muslim Brotherhood's chance of gaining a majority of seats in the new assembly has alarmed Egyptian liberals and minorities and secularists, who fear that the organisation will impose rigid, regressive religious laws on society. They accuse the Muslim Brothers of paying lip-service to democratic principle and of plotting to hijack the secular state and replace it with sharia-based rule.
Read the complete article at the New Statesman

Bahrain security chief replaced after inquiry


Family members mourn during a funeral for a protester on 18 February 2011 in Sitra, Bahrain More than 40 protesters died in February and March in Bahrain
King Hamad of Bahrain has replaced the head of the country's security agency following an inquiry into the crackdown on protesters earlier this year.
Sheikh Khalifa bin Abdullah, a member of the ruling family, has been moved to another senior security role.
The inquiry, published last week, found that "excessive force" had been used against pro-democracy protesters.
More than 40 people died during Shia-led protests in February and March.
Abel bin Khalifa Hamad al-Fadhel has been named as the acting security chief, while Sheikh Khalifa bin Abdullah was appointed secretary general of the Supreme Defence Council, an official statement said.
Bahrain's Independent commission of Inquiry was set up after the country faced international criticism of its handling of the protests, which have continued sporadically.
The majority of the population of the Gulf state is Shia Muslim and the violence has fuelled anger against the ruling Sunni royal family and political elite.
More than 1,600 people have been arrested since the start of the protests. The commission found that many detainees had been subjected to "physical and psychological torture" and their basic human rights were violated.

Saudi Arabia - Trial of schoolteacher accused of serial rapes starts today


By ARAB NEWS
JEDDAH: A 43-year-old Saudi schoolteacher accused of raping eight girls after kidnapping them from malls and wedding palaces in Jeddah will stand trial Wednesday before a panel of three judges, sources at the Jeddah general court said Tuesday.
According to the sources, the Prosecution and Investigations Commission (PIC) submitted the case file of 35 pages to the general court about a week ago.
The source said a copy of the confidential file was also handed over to the defendant’s lawyer.
According to the sources, there was enough evidence incriminating the accused, including photographs by surveillance cameras. They showed him kidnapping some of the girls from various locations in Jeddah.
Earlier, he confessed to drinking alcohol and having pornographic clips on his laptop.
The sources said the DNA of the accused matched the samples taken from the clothes of one of the victims. From 2008 until he was caught on May 4, 2011, the accused allegedly kidnapped and raped eight young girls aged between six and 12 years.
According to the sources, the court session will be behind closed doors. Only the accused and his lawyer will be allowed in the court.
The charges include kidnapping and raping underage girls, terrorizing the victims and their families, physically abusing young girls, forcing them into his home, forcing some of them to drink alcohol and watch porn clips and dumping all of them on the street afterward.
On Tuesday local Arabic newspaper Al-Watan quoted Abu Abdul Aziz, an uncle of the accused, as saying that the family had confidence in the judicial system and were sure that their son was innocent.
The uncle said the case was made a public opinion issue after the press and other media had extensively covered it.
“The accused was not caught drinking alcohol. Nor was he in the company of any of the victims he was accused of raping. He was summoned to the police headquarters by a call on his mobile,” he said.
Abu Abdul Aziz was sure that his nephew, who was a good teacher, would never commit such a filthy act.

Ethiopia - Unbalanced Growth strategy a potential for conflict in Ethiopia


Filed under: Ethiopia — ethiopiantimes @ 9:27 am
Tags: , , , , ,

By Geletaw Zeleke
To help boost the economies of low income countries a development strategy named unbalanced growth theory was introduced by development theorists. With the use of this strategy select economic zones grow at rapid rates, while other economic zones experience stagnation or reduced growth as a result. The objective of this strategy is to concentrate wealth in special economic zones to make it easier to build momentum for breakthroughs in the overall development.
According to development theorist Professor Albert O. Hirschman it is vital to create deliberate imbalances in the economy of countries to accelerate development. This is especially true for those countries who may not have enough initial resources to create the “big push” needed on their own. The idea is that acceleration of growth will arise where there is unbalance. The ultimate goal of unbalanced growth strategy, importantly, is not to realize unbalanced development but to realize balanced development.
In fact this approach has worked as an economic model for some countries. For example, South Korea experienced this type of growth. In the 1970s, lacking resources to develop their country rapidly they selected areas to invest their wealth in, in order to boost their overall economy. As they planned they could develop specific economic zones and after that those areas would replicate themselves and be recreated in other industries. Within a few years Korea was able to develop their country and today is a country that has achieved fair economic distribution.
In Ethiopia it appears the government and its fans are unofficially claiming that Ethiopia is experiencing unbalanced growth and because of its nature majority of the peope can not presently feel the effects of development. This translates to mean that it is not the right time to realize redistribution in the case of Ethiopia because concentrated wealth is not ripe enough for the overall development but for the “future” it will change citizen life.
I think they believe all huge economic disparities are the results of the nature of the growth strategy that they are employing.
We have no problem with the science of unbalanced growth theory as far as it is implemented carefully. In my opinion the strategy of unbalanced growth can be useful for many low income countries but it can not work in the case of Ethiopia because of the following arguments.
1) The political Setup
At the very beginning, to chose unbalanced growth strategy, their should be a conducive political environment and setup. In a country whose politics are shaped by tribes and where Ethnic Federalism is practiced there is not enough confidence in the circle of concentrated wealth. The nature of Ethiopian politics pushes citizens to identify themselves in terms of their cultural group and this tendency is also seen in the individuals who own and manage the concentrated wealth who also identify themselves in terms of their cultural groups.
Weak nationalism and bias to the tribe prohibit unbalanced growth strategy from succeeding. The nature of identity politics damages the psychological attachments of the people. It is difficult to concentrate wealth in the hands of small groups since nationalism is weaker. In a country that promotes identity politics this type of growth strategy can not be effective.
2) Very Low Certainty About Redistribution
As we have said above the goal of unbalanced growth theory is to speed up development not to create economic classes. Ethiopian people do not have faith that wealth can be redistributed fairly after it has been ripened by unbalanced growth. Since the trust of people is very low they are not certain that concentrated wealth will be redistributed or given to develop the country. In a nation who politicizes geography and culture there is no guarantee for the people who work hard to concentrate wealth in specific economic zones.
3) Corruption Culture
Taking a look at the Transparency International yearly reports a surprising fact is that since the Ethiopian Ethics and Anti-corruption Commission was established the Transparency International CPI (Corruption Perception Index) score is decreasing. In 2002 the CPI score was 3.5 after years it has decreased to 2.7 in 2010. Ethiopia also placed 60th in 2000 and after a decade it is placed 116th in the index. This shows that corruption is growing.
The irony is that GDP is growing and strangely corruption is growing simultaneously. This might indicate the type of corruption is more likely not of a competitive type but rather of a monopolistic type of corruption.
The problem is the risk is very high to implement unbalanced growth in this kind of country.
4. The Theory Needs Independent Institutions
A guarantee for the choice of using the unbalanced growth development strategy is the existence of independent institutions. An independent banking system, independent court and the like are responsible for risk takers.
According to the World Prosperity Index Ethiopians have very low trust in these institutions.
“A lack of democratic ability and confidence blights the Ethiopian political system […] the judiciary lacks independence[…]there appears to be little respect for the rule of law and the country is notable for its poor regulatory environment for business, placing 101st in the index on this variable. Levels of confidence in the military and judiciaries are both very low. Ethiopians have few political rights, but 16% reported having voiced an opinion to a public official recently. Unsurprisingly, only 19% of the population believe that the electoral process is honest.” (2010; World Prosperity Index)
In such a country as Ethiopia, that lacks independent institutions, it is impossible to actualize unbalanced growth strategy.
5) Article 39 vs. Unbalanced Growth
Ethiopia is most likely the only country which declares secession in its Constitution. This article is a potential problem to implement the unbalanced growth. There is no guarantee for the people that wealth will be returned for redistribution because this article practically declares it while creating psychological fragmentation among cultural groups at the same time.
6) Potential for Conflict
If there are no independent institutions and if culture and geography are politicized then concentrated wealth can not be a development accelerator as it ought to be, rather, it becomes a potential for conflict among groups.
Let’s take a look at the EFFORT (Endowment Fund For Rehabilitation Tigray). This organization is the wealthiest organization in Ethiopia. The wealth of the country is concentrated here. The problem is that the people believe that the wealth belongs to all Ethiopians but the TPLF official Mr. Sibehat Nega the former EFRT chairman declared that the organization belongs to the Tigray tribe but it is “serving” the whole people. This attitude creates a psychological gap and as a result people develop mistrust. This huge proportion of the country’s wealth could be a stimulant of politics. Since the leaders of this organizations are all from one tribe and these individuals are very high rank government officials it is difficult to trust in. The people have a well founded fear that this money can not be put to developmental activity rather it confined to a profit oriented monopolized organization. The group does not worry about development and service rather it is embezzlement in order to maintain the economic upper hand.
To sum up unbalanced growth strategy in the current general condition of Ethiopia is not only disadvantageous but also it is a harmful strategy.

Egyptian elections mark break with the past

Turnout in historic vote estimated at about 70 per cent, though some dubious over military's role in overseeing vote.
Last Modified: 29 Nov 2011 21:11
 Egyptians have gone to the polls for the second day in a parliamentary election that voters hope will bring about a civilian government, even though the army generals who took over from President Hosni Mubarak have yet to step aside.
Voters in Cairo, Alexandria and seven other governorates flocked to the polls on Tuesday to select members of the country's lower house of parliament, with long lines forming around polling stations for a second day.

The election, the first since a revolt ousted Mubarak on Febuary 11, unfolded without the mayhem many had feared after last week's riots against army rule in which 42 people were killed.

Initial reactions after the polls closed at 7pm (local time) suggested that the voting had been relatively free and fair, successfully breaking with decades of severely compromised elections.
"For the first time, and in these elections, we have not seen a general will from the government to forge and rig the election, meaning if there are any violations or mistakes made that we have observed, it is not at the level of mass forgery through political orders by the government," Dr Magdy Abdel Hamid, head of the Egyptian Association for Community Development, said.

While there had been some violations, he said, they were not widespread enough to have a serious impact on the results.

'Room for doubt'
However, as election officials prepared to count the votes late on Tuesday, some activists cast doubt on the validity of the election.

Ahmed Aggour, an Egyptian blogger, said he did not vote because he believes citizens have more critical issues to address than elections.

"Basically, that is SCAF [Supreme Council of Armed Forces] stepping down from power and handing it over to civilian authority," he said.

While some violations were reported, they were not at the level of 'mass forgery' of past elections [AFP]
Speaking to Al Jazeera from a sit-in in front of the Egyptian parliament, Aggour said: "What people didn't notice is the SEC, the Supreme Electoral Committee, is the same SEC that supervised the 2010 elections, and is the same SEC that is supervising the 2011 elections.

"So that basically gives room for doubt on whether the elections are going to be fair and free."

The demonstrators marched in front of the heavily guarded parliament building beating drums and chanting against the SCAF, the country's ruling military government.

A few streets away, thousands of protesters continued to fill central Cairo's Tahrir Square - the focal point of more than a week of demonstrations against the military and its head, Field Marshal Mohamed Hussein Tantawi.

Though numbers were lower than they have been over the past several days, many protesters remained camped out in tents scattered across the square.

Scattered clashes broke out in some areas of Tahrir late on Tuesday, as groups of men began forcibly removing vendors who had set up booths selling food and merchandise throughout the square.

In the ensuing fight, witnesses reported petrol bombs, rocks and sticks being thrown, as the sound of ambulance sirens rang out in the distance.

Protesters have been camped in Tahrir since November 18.
High turnout

Turnout in the election was reported to be high, with many Egyptians voting for the first time in their lives.
The SCAF had extended voting in the first of the three stage process for a second day to absorb the vast number of voter turnout.

"There is no actual or definitive estimate, but I assure you that, until now, it will go above 70 per cent. I hope it will reach more than 80 per cent by the end of the day," General Ismail Atman told Al Jazeera.

"What we saw yesterday and today was something that exceeds what could be imagined and exceeds the whole world's expectations."
Mohamed Kamel Amr, Egypt's foreign minister, told Al Jazeera that the preliminary voting results of Egyptians voting abroad show that turnout was approximately 60 to 70 per cent across more than 100 embassies.

Independent election monitors up until Tuesday afternoon said there had been a high turnout and one official, representing a number of monitoring groups, said that it could easily rise above 50 per cent.
UN leader Ban Ki-moon on Tuesday praised the "generally calm and orderly" election and hailed the country's role in the Arab Spring uprisings, his spokesperson said.

Ban "commends the population and authorities of Egypt for the enthusiastic participation in this first stage of the electoral process and for the generally calm and orderly manner in which voting took place," said Martin Nesirky.
Rise of civilian leadership?
But the elections could be the start of other problems for the military.

A parliament "with a strong popular legitimacy can also in the future challenge the power of SCAF," said Karim al-Assar, an analyst with the Cairo-based independent Signet Institute.
Already, the Muslim Brotherhood, whose political wing, the Freedom and Justice Party (FJP), is widely expected to do well in the legislative elections, is taking a stance that could set them on course for a row with the SCAF.
The military council has said that it will have the authority to appoint the cabinet, rather than the parliament that is set to be elected in the elections that began on Monday.

But Mohamed Mursi, leader of the FJP, said on Tuesday that a cabinet not backed by a parliamentary majority could not govern in practice - a statement that suggests his party might push for a speedier transition to civilian rule.

"A government that is not based on a parliamentary majority cannot conduct its work in practice," Mursi said to reporters during a tour of polling stations in the working class district of Shubra in Cairo on Tuesday.

"Therefore we see that it is natural that the parliamentary majority in the coming parliament will be the one that forms the government."
- Malika Bilal contributed reporting from Cairo

Greece -Think we've got it bad? Read about the British expats whose lives have become a nightmare in violent, chaotic Greece


Last month, I dropped off my two-year-old daughter Nicci Alise at her nursery during a downpour that lasted barely an hour. But this being Athens, that’s all it took for many of the shoddily maintained roads to flood. As I navigated the five-minute drive home, stinking bags of uncollected garbage sailed past in the torrents.
It could have been a scene from Slumdog Millionaire, except that I was driving past multi-million-euro mansions with gilded gates and cascading bougainvillea in one of Athens’s most affluent suburbs. The imagery was potent. Greece 2011: a country that has allowed itself to be capsized by its own accumulated waste.
It’s been barely a fortnight since new prime minister Lucas Papademos was parachuted in, and Greece’s so-called ‘national unity’ government has already devolved into a Mexican stand-off over the crucial signing of the eurozone rescue deal. But regardless of any new political scenario, Greece’s citizens still face years of brutal austerity when, even now, there are so many who haven’t been paid in months.
Lost Idyll: Amanda and Dmitri with their daughters
Lost Idyll: Amanda and Dmitri with their daughters
On that rainy day, the city’s refuse collectors were on strike, as they had been for the past fortnight, along with a good proportion of Greece’s labour force. We were in the grip of a 48-hour general strike. Airports, state schools and banks stopped working. They were joined by bakers, doctors, customs officials, taxi and bus drivers and even judges. Clothes shops and tax offices shut down, but the beggars who clog Athens’s road junctions cleaning windscreens were still hard at it.
Every night, my husband Dimitri and I log on with foreboding to the strike website that has the most reliable information on the next day’s industrial action. That’s right: we have chosen to live in a country where we must consult a website devoted solely to strikes. It is dawning on us that we must be crazy.
Six years ago we left London for Athens in a spirit of great optimism with our first child, Poppy Grace. It was a chance for Dimitri to reconnect with his Greek roots in the great Olive Belt.
Last month’s 48-hour paralysis was certainly the most severe I have witnessed. The day before, we all rushed out to stock up on milk, bread and petrol: siege preparations.
When rumours of another extended petrol station strike broke earlier that month, I queued for an hour to fill my tank. The last time it had happened, we had no petrol for more than a week.
Eighteen months ago, three people died – one of them a pregnant woman – when protesters torched the Marfin Egnatia bank in Syntagma Square, 300 yards from where my husband works for a small Greek investment bank. Like thousands that day, he had to fight his way home on foot through tear gas and flying rocks.
Every night, my husband Dimitri and I log on with foreboding to the strike website that has the most reliable information on the next day’s industrial action. That’s right: we have chosen to live in a country where we must consult a website devoted solely to strikes. It is dawning on us that we must be crazy.
But back then, and for a long time afterwards, our pampered expat bubble held firm. Not for us the crushing anxiety about austerity and job losses. Out here on this desirable strip of the south coast they call the Athenian Riviera, we thought we had nothing to fear from extreme new tax collection regimes. Unlike entire generations of Greeks, we actually paid our taxes.
We still enjoyed our inflated salaries and our £5 frappes at Athens’s most exclusive beaches. Our carefree weekends were spent sipping champagne in Mykonos or on friends’ 65ft private boats. If the husbands worked in shipping, the wives worked at shopping. We didn’t care that the Greek education system has one of the most dire performance records in Europe. We sent our children to the international private schools.
Not for us either the cramped inner-city dwellings – staring at the neighbours’ wet laundry – which most people imagine when they think of Athens. We live in large whitewashed apartments with manicured gardens and security gates.
But now, finally, it appears our expat bubble has burst and we, too, are starting to feel the burn.
A month ago, Dimitri once again braved the riots and tear gas, the piles of burning rubbish and Molotov cocktails to get home from the city’s beleaguered centre. But the mood of the people, he reported, had shifted and there was now an ugly undercurrent to these ritual protests that frightened him.
For the first time, protesters targeted one of the guard boxes outside Parliament House. Traditionally, these military sentinels have been revered by the Greeks as a symbol of the people. Last month, they burned a guard box too. Greece – her unemployment rate soaring at 16.5 per cent – now officially appears to be a country that is fragmenting.
Six people have already been ‘let go’ from my husband’s small team. One colleague has had his pay slashed by 66 per cent but, with two children to support and no other jobs available, he has no choice but to stay on. The Greek banking industry is not exactly a great place to be right now. But at least it has one rare distinction: here, the banks haven’t sunk the country, the country has sunk the banks.
‘The first thing to go was our boat,’ says British expat Tessa, a mother of three from Cheshire whose Greek husband has been forced to leave the family behind and relocate to Dubai after losing his lucrative civil engineering job here. ‘Then the Maserati and then the Volvo. Now I’ve just got the Mazda,’ Tessa laughs, aware of the contrast between her family’s concept of hardship and that of the average Greek.
Before the problems started: The couple used to lead an idyllic lifestyle but things have started to come crashing down
Before the problems started: The couple used to lead an idyllic lifestyle but things have started to come crashing down
The financial crisis is also proving ‘completely catastrophic’ for Sara, a British expat who has been living in Athens for 13 years. She and her Athenian husband run a Greek-based watch import business.
‘Many of our Greek buyers are giving us cheques dated eight or nine months down the line,’ says Sara, 45, who is originally from Surrey and has a seven-year-old daughter.
‘Eating out is finished. So is any form of retail therapy. We have to keep it all back to pay the Greek government.’
But the prospect of having to move back to England is horrific, she says. ‘How would we get on the property ladder? We’re both in our 40s, who on earth would employ us? So, like many other people here, we feel trapped. We have no choice but to dig in.’
British couple Andrea and Jimmy Phillipson, an olive trader whose company supplies British outlets such as Fortnum & Mason and Marks & Spencer, left their home in central Athens last year and headed for the safety of the suburbs. Andrea, 38, an interior designer and mother of two, says: ‘The riots started to crank up. They set fire to the post office at the top of our road. That was the final straw.’
In our own home, the cold nights have set in but our landlady is often unable to buy fuel for our heaters because of the strikes. On the really bad days when we get the full monty – buses, trains, underground trains and taxis all striking – Dimitri has to hire a driver at great expense to get to his office.
Mexican stand-off: Greece's new prime minister Lucas Papdermos is already facing huge battles
Mexican stand-off: Greece's new prime minister Lucas Papdermos is already facing huge battles
My Greek tutor, Lizzy Robson, talks movingly about the loss of hope that the Greek people are experiencing and their unprecedented sense of helplessness. Originally from the North of England, she has lived here for 33 years.
‘There have always been strikes but before there was the perception that things would go back to normal. Now, there is no hope in the future,’ she says. Her sister-in-law and husband came to visit for a weekend recently and were trapped for an extra week, unable to get back to Manchester because of strikes.
‘They won’t be coming again,’ Lizzy laments. ‘They’d already spent a week skirting round piles of rubbish. Then they didn’t know how they were going to get home.
‘The Greek people I know realise they’re making it worse for themselves. Many are embarrassed about what’s happening. One of their biggest worries is that so many young people are leaving the country.’
But the rot continues. A friend whose official salary has been cut receives a cash-stuffed envelope each month, making up the difference. Our landlady complains about the corruption and then hands us a receipt for our rent with only half the amount written on it.
‘Every single Greek person I have met has taken advantage of the system here for years,’ says Sara. ‘Even if it was just passing an envelope of money to the hospital staff when their children were born to make sure they were looked after properly.
A friend whose official salary has been cut receives a cash-stuffed envelope each month, making up the difference. Our landlady complains about the corruption and then hands us a receipt for our rent with only half the amount written on it.
‘It’s just taken as part of life here. The philosophy is, if you don’t look after yourself, no one else will.’
At this day-to-day level, it is easy for us outsiders to understand how the Greeks have brought this awful mess upon themselves. As one embattled Greek tax collector said: ‘The Greek people never learned to pay their taxes because no one is ever punished.’
There have been many times we have been tempted to call it quits, long before Greece was having trouble squaring the books. The chaos on the streets, the depressing contempt for the environment (some beaches and parks should have a World Health Organisation warning) and the arrogant driving culture which borders on the criminally reckless.
I once saw two small boys standing in the back of a Smart car, gripping the seats in front, Ben Hur chariot-style, while their father belted down the motorway chatting on his mobile.
It’s pretty obvious from the whole debt disaster that Greeks don’t like being told what to do. Take what happened when the government introduced a smoking ban a few years back. Nothing.
The restaurant and cafe owners just shifted a few tables.
But there is so much about life in Greece that positively sings: a family-first culture and a low divorce rate compared with Anglo-Saxon societies; less alcoholism, less violent crime. We’ve had unforgettable experiences, such as driving to the mountains to pick wild flowers from the sacred Oracle of Delphi – a site so beautiful it hurts.
And despite the ugly images on your TV screens, most British expats unequivocally believe life here is still much safer than back home. But, sadly, we now feel, like so many other families, that we are living on borrowed time. Default, even with Europe’s rescue money, seems inevitable.
My 22-year-old Greek hairdresser is desperate to find work abroad, but can’t afford the fare. ‘Greece? Greece is about the past,’ he says, angry at his country for denying him a future. Once the young go, what hope is there for any nation?

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