#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.