Monday’s Eurogroup did not come to a decision about Greece’s bailout, thereby the European Central Bank cannot continue funding the country yet.
Greece will be in a dire situation by the end of April, as Prime Minister Alexis Tsipras himself told German magazine Der Spiegel. By the end of next month, Greece will need 8.3 billion euros while available state funds will not exceed 5.2 billion euros at that time.
The Greek government needs 3.2 billion euros by the end of March to renew treasury bills. Also, obligations to the International Monetary Fund by the end of March amount to 1.2 billion euros. In April, another 2.4 billion euros for treasury bills must be paid, while obligations to the IMF amount to 448 million euros. By the end of April, 1 billion euros is required to pay interest.
In April, the government will have access to 2 billion euros from security funds and 2.7 billion from commercial banks. Even though some security funds disagree with the move, there is no other way. In addition, the state can use 500 million euros from the Financial Stability Fund.
So, Greece must secure another 3 billion euros in April to fulfill its obligations.
A solution can be found in the ECB session on Thursday where the issue of emergency liquidity assistance will be discussed. If not, there is the danger of default.
On Wednesday, the technical teams of Athens and creditors will meet in Brussels to start the review of the reform program Greece has proposed. This is in essence the beginning of real negotiations on Greece’s bailout.
Meanwhile, the Greek Premier is preparing for a series of meetings with top European officials in order to secure political support for Greece’s proposals.
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