Πέμπτη, Νοεμβρίου 15, 2012
Eurogroup May Grant Greece Funds Only Through 2014
The Eurogroup may only approve another E13.5 billion in funding for Greece at its meeting next week, enough to close the government's financing gap through 2014 but leaving open how to meet the shortfall for the following two years, German business daily Handelsblatt reported Wednesday evening.
Citing a Eurozone source, the newspaper said the smaller amount could be met without providing Greece any additional aid package, raised instead by reducing interest payments on existing funds.
Fresh loans are "not an option" at this time for Eurozone members, the newspaper reported.
The long-awaited Troika report issued earlier this week estimated that Greece will need another E17.6 billion through 2016 to grant the government the extra two years it has asked for to bring its budget deficit under control.
Eurozone finance ministers could approve the E13.5 billion at their next meeting Tuesday, leaving open for the time being where the money will come from between 2014 and 2016, Handelsblatt reported.
It also remains open whether finance ministers will hold Greece to its longer-term target of returning to debt sustainability - a debt/GDP ratio of 120% - by 2020, or whether this will also be delayed by two years.
Eurozone finance ministers support the extension to 2022, but the International Monetary Fund is opposed. Finding consensus will be "very difficult," a Eurozone source told the paper.