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Greece Starts Negotiating Third Bailout Program

A Greek flag flies behind a statue to European unity outside the European Parliament in BrusselsGreece starts a new round of negotiations in Brussels aiming at a third bailout program and a new loan of 46-50 billion euros, according to a real.gr report citing an International Monetary Fund leak to the Financial Times.
The IMF has hardened its stance towards Greece and it will not disburse the remaining 15.4 billion euros allocated until 2016. According to the organization, Greece is on track to run a large primary deficit, implying that the debt will start to rise without reforms or debt write-off, and European partners do not seem willing to cut part of the debt.
In order to keep Greece in the euro zone, the European Commission and the European Central bank are considering a new loan of about 19 billion euros in order to buy off the Greek debt to the IMF. The IMF will depart from the financial side of the bailout program and will remain as a technical advisor.
The European Financial Stability Facility (EFSF) will lend 27 billion euros to buy Greek bonds from the ECB, negotiating power after admitting that it needs about 50 billion euros to stay afloat.
EC President Jean-Claude Juncker expressed the view that the new Greek government has inverted the progress made by the previous, Antonis Samaras government. He said that Athens is asking Europe to respect Greek democracy, but Athens must respect the democratic will of the rest of Europe as well.
Juncker essentially prepared the ground for new fiscal measures, while EC officials explained to the Press that merging the fifth review of the current bailout program with the new bailout does not negate the need for the completion of the review.

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