Eurozone authorizes US$6.72-billion payment to Greece despite election results
Wed, 05/09/2012 - 14:28 EDT - Financial Post
Eurozone governments kept Greece afloat on Wednesday after agreeing to authorize a payment of 5.2 billion euros (US$6.72-billion) from the region’s bailout fund, despite opposition from some member states following the Greek election results
BRUSSELS (Reuters) - Euro zone governments kept Greece afloat on Wednesday after agreeing a payment of 5.2 billion euros from the region's bailout fund, despite opposition from some member states following the Greek election results. After a conference call, the board of the European Financial Stability Facility, the 700 billion euro bailout fund administered by the 17 countries that use the euro, agreed to make the scheduled payment, which will allow Greece to meet near-term bond redemptions and other obligations. An initial 4. ...
BRUSSELS (Reuters) - Euro zone governments kept Greece afloat on Wednesday after agreeing to authorize a payment of 5.2 billion euros ($6.72 billion) from the region's bailout fund, despite opposition from some member states following the Greek election results.
BRUSSELS: Greece's European creditors are playing a game of pass-the-parcel about who should stump up the money to avert a default at the end of June if Athens clinches a last-gasp deal this week on a package of reforms to unlock frozen bailout funds. Greece must repay the International Monetary Fund (IMF) 1.6 billion euros ($1.8 billion) by June 30 or be declared in default, potentially triggering capital controls to prevent a bank run and pushing it closer to an exit from the euro zone.
Greece reshuffled its bailout-negotiating team, clipping Finance Minister Yanis Varoufakis’s wings, after three months of talks with creditors failed to unlock aid and a meeting with his euro-area counterparts ended in acrimony.
The coordination of day-to-day efforts to strike a deal with creditors was handed to Deputy Foreign Minister Euclid Tsakalotos, a Greek government official said in an e-mail to reporters Monday.
Varoufakis’s role will be limited to supervising the political negotiations with euro-area member states and the International Monetary Fund.
Frustrated by Greece’s cat and mouse game with its creditors? Get used to it.
Even if Prime Minister Alexis Tsipras clinches as much as 7.2 billion euros (US$8 billion) from a bailout tranche creditors are withholding, he’s going to need another cash infusion shortly thereafter.
ATHENS: Hopes that Greece and its creditors can seal a debt deal with exactly one week left to avert default could fade as the Greek premier faces pressure to convince his anti-austerity party to approve concessions needed to unblock bailout funds. "We are very near (an agreement), the next 48 hours will be decisive," said Greek government spokesman Gabriel Sakellaridis, after Monday's emergency eurozone summit ended with an optimistic assessment of Athens' latest proposals to its European Union and International Monetary Fund creditors.
Brussels (AFP) - Greece is to make "counter-proposals" on a deal to unlock vital bailout funds Saturday, after eurozone officials said they had discussed the possibility of Athens defaulting if the talks fail.
BRUSSELS: The leaders of France and Germany on Friday handed Greek Prime Minister Alexis Tsipras a weekend ultimatum to strike a debt deal with EU-IMF creditors or risk default. Angela Merkel and Francois Hollande told the leftist Greek premier in brief talks on the sidelines of an EU summit that Saturday's meeting of eurozone finance ministers was critical. "They reminded him that this meeting was crucial and decisive and that it was vital now to work towards a deal on a package that includes reforms, investment and financing," a source said.