No debt relief or bailout money yet for Greece

by Garry Watts May 28, 2017, 2:16

Euro zone Finance Ministers and the International Monetary Fund will seek a deal today on Greek debt relief.

Greece will receive billions of euros to repay the institutions it has borrowed money from in time for a crucial July deadline, avoiding another situation that could plunge the country into crisis - as when it almost defaulted on its loans in 2015.

After almost eight hours of talks and multiple draft compromises, Athens and its creditors couldn't reach an accord that would ease Greece's debt and that would convince the International Monetary Fund (IMF) to agree to help finance the country's bailout.

Participation in this so-called quantitative easing is a key policy aim for Greece's Syriza government, as it would boost investor confidence and prepare the country's return to debt markets.

However, the Eurogroup did not reach an overall agreement after an in-depth discussion on the sustainability of Greece's public debt, because a possible gap "between what could be done and what some of us had expected" was unable to be closed.

EU Economics Commissioner Pierre Moscovici also said he saw a deal at the next Eurogroup meeting, in Luxembourg on June 15.

He said 3.5 percent of gross domestic product was a high primary surplus target which, however, "we were forced to accept".

France's Finance Minister Bruno Le Maire, center, talks with Italy's Finance Minister Pier Carlo Padoan, right, and Greece's Finance Minister Euclid Tsakalotos prior to a meeting of Eurogroup finance ministers at the.

'Doomsday' seed vault meant to survive global disasters breached by climate change
The building's entrance tunnel was flooded and then froze to create conditions "like a glacier" for those trying to enter. Once inside, the water froze into ice as temperatures cooled again, before any water could penetrate the vault itself.

German Finance Minister Wolfgang Schaeuble told reporters before the meeting that Greece's new law is a "good step".

The chairman of euro zone finance ministers Dijsselbloem said that work was progressing for the disbursement to take place "before the summer".

Schaeuble made clear, however, that Germany, which faces elections in September, could not meet the IMF's demand to promise Greece debt relief already now.

Ministers from the 19-member single currency bloc must confront the sensitive topic at talks in Brussels after Greek lawmakers fulfilled the eurozone's latest demands for painful reforms in a vote last Thursday.

But officials said the size of the surplus afterwards was still under discussion and there were also differences on economic growth assumptions - especially that forecasts used for debt relief plans spanned dozens of years.

On Monday, French President Emmanuel Macron said his new administration will push for a Greek debt relief deal. The IMF has raised doubts about Greece's ability to maintain such an optimistic budget performance for decades, while key creditors have been pushing for a more positive outlook.

Schaeuble, as well as several International Monetary Fund economists, agree that Greece should demonstrate its ability to decrease its budget deficit and achieve sustainable economic growth by the early 2020s through an economic reform package that would include stricter austerity, improved investment climate, deregulation, and abandonment of the most costly social programmes.

Recommended News

TOP News

Comicon props banned after armed man arrested
This had lead to increased security checks and a ban being placed on all prop weapons for the remainder of the convention. The Phoenix Comicon is being held at the Phoenix Convention Center in the downtown area of Arizona's capital.

Cubs' Ross comes up just short on 'Dancing'
They normally do an hour recap show before the finale starts at 9/8c, but not this time . Ross scored 109 out of 120; Kordei earned 118; and Jennings received 119.

'Stronger than the strongest human': AlphaGo software outsmarts board game champion
Go may not be the endgame, but it's a beguiling, engrossing context for these conversations to be held in. However, experts say that the margin of victory is not the AI's priority.

Stokes smashes century after lucky start as England make 330
Ben Stokes has been passed fit for the second one-day worldwide against South Africa , the European Central Bank have confirmed. South Africa , however, then missed dangerman Stokes twice in his first two balls, with Maharaj again the unfortunate bowler.

'We can use peace': Trump and Pope Francis meet
Still, experts believe it unlikely the outspoken pope will do anything but be welcoming during his first meeting with Trump. McMaster, Trump's daughter, Ivanka , and her husband Jared Kushner (who are both now official advisors to the president).

House budget leaves out Senate spending cuts
The House's approval would send the measure to the Senate , which has a committee working on a rival plan. The analysis said the House bill would reduce federal deficits by $119 billion over the next decade.

Ajax boss Peter Bosz: Europa League final has lost its glow
United's performances during this season's tournament suggested their players were not sure how much they wanted to win it either. Bosz said the wives and children of some Ajax players attended one of the pop star's concerts in Amsterdam about two weeks ago.

Iranian President Responds to Donald Trump, Saudi Arabia Criticism
Commenting on Iran's missile program, Rouhani said the Islamic Republic's missile program aims at guaranteeing peace, not aggression.‎.

Kelly on non-criminal ICE arrestees: 'not the valedictorians'
ICE officials in Southern California arrested almost 200 persons Thursday, most of whom had prior criminal convictions. The majority - 146 - are from Mexico while two are from Russian Federation and one from Cambodia.

Celtic clinch unbeaten treble with late Scottish FA Cup win
Player of the year Sinclair then fluffed a chance to win as he completely miss-hit his volley from a Griffiths pass allowing Lewis to make the save.