#AceFinanceNews – GREECE – April 01 – Greece is fully financed for the next 12 months, the chairman of Eurozone finance ministers Jeroen Dijsselbloem said on Tuesday.
The country does not want to ask the eurozone for a third bailout, although it is too early to say if it can fulfil that ambition, according to the official.
Full funding one year ahead is a condition for the International Monetary Fund (IMF) to disburse its part of the existing bailout.
According to (Reuters) Greece was cut off from markets in 2010 as the true scale of its debt burden became apparent. But after four years of painful measures to contain debt, two bailouts worth 240 billion euros ($330 billion) and a hit on private bondholders, the Greek economy is expected to return to modest growth this year.
Encouraged by falling bond yields, Greece is considering ending its four-year exclusion from bond markets by selling 1.5 billion-2 billion euros of five-year bonds in a test issue in the first half of the year.
The cash raised would complement money that Athens will get from the euro zone and the International Monetary Fund after a deal in March which unblocks the payment of overdue tranches.
The certainty that Greece will have enough money over the next 12 months to cover its expenses is important because it is a condition for the IMF to keep lending to Athens even after euro zone loans stop at the end of 2014.
“We had assurance from the Troika institutions that Greece is fully financed for the coming 12 months,” Reuters quoted Dijsselbloem as saying.
#AceFinanceNews say that `Eurogroup’ says troika to return to Greece this week, as there has been no progress in discussions with `Greek‘ authorities.
A mission of international lenders will return to Greece later this week to review progress made in delivering on the country’s reforms, the chairman of euro-zone finance ministers, Jeroen Dijsselbloem, has said.
The International Monetary Fund (IMF), the European Commission and the European Central Bank interrupted a visit to Athens last year because there was no progress in discussions with Greek authorities.
This has held up disbursements of loans due since September 2013, Reuters said.
The main sticking point is how Athens would plug a gap in this year’s budget, estimated at 1 billion euro.
- Dijsselbloem: More Aid for Greece to Be Decided ‘After Summer’(greece.greekreporter.com)
- ‘Troika’ Creditors to Return to Greece for Debt Talks(greece.greekreporter.com)
- Troika to return to Greece in search of debt deal(euobserver.com)