After 17 hours of negotiations, the Eurogroup finally reached Monday, July 13 agreement to the opening of negotiations for a third aid package to Greece. However, Athens will have to wait several weeks for -probably 4- an agreement is finalized, explained yesterday the president of the Eurogroup Jeroen Djisselbloem, just re-elected.
Greece needs 3.5 billion euros in July …
But given the urgency of the Greek economic situation, the country should benefit from a bridging loan. Greece has particular needs 3.5 billion euros from Monday, July 20 to honor its commitments vis-à-vis the European Central Bank (ECB). And that’s not all because the country must also repay the IMF. In reality, Greece would need € 7 billion in July, 5 billion euros in August.
Despite a critical situation, Greece has successfully discharged Tuesday of redemption of bonds called “Samurai” with private creditors in Japan. “ The reception of the sum of 20 billion yen ($ 148 million) was confirmed this morning,” this morning indicated a bank spokesman Japan’s Mizuho Financial Group. So yes, the $ 148 million seems anecdotal having regard the total amount of Greek debt (312 billion euros). But the repayment of this debt has a symbolic dimension. For if Tuesday morning, Greece did not repay its Japanese creditors, ie private investors, it would have been judged bankrupt ….
A bridge loan to reinvigorate the Greece
Greece, including the closure of banks and capital controls have been extended until Wednesday 15 July inclusive, is once again suspended the Brussels decisions. But it should be able to blow quickly
In the morning, the President of the Eurogroup said that the loan study was underway.
“ We have studied the question of a bridge loan because there are urgent needs and the process of finalizing the agreement will take time,” also stated that Tuesday morning Jeroen Djisselbloem, just re-elected President of the Eurogroup.
Meanwhile, the Austrian Finance Minister, Hans Jörg Schelling, announced a teleconference to discuss a bridge loan for Greece would be held Wednesday, noting that the Eurogroup summit is not necessarily required to arrange such a credit.
“ If This is a reasonable proposal, the finance ministers of the euro zone can certainly decide on a conference call, “ he said.
The Greek Parliament reforms must validate
This first step will be followed by the opening of negotiations for Greece to obtain a third aid package of around 86 billion euros over the weekend. But Athens will first by Wednesday to pass a series of texts committing economic reforms.
Earlier in the morning, Nikos Voutsis, the Greek Interior Minister said that the Vouli , the Greek Parliament will adopt the legislation necessary for the provision of further financial assistance from the European Stability Mechanism (ESM). “ Decisions facilitating a return to normality will be taken ,” said he said.
However, the agreement reached between the creditors and the Greek Prime Minister Alexis Tsipras not unanimous. Within Syriza, his own party, his critics accuse him of having capitulated to the necessary austerity demands by Berlin. MP Dimitris Kodelas announced his resignation from the parliamentary group after the vote Wednesday. The Deputy Minister for European Affairs, elected Syriza, Nikos Chountis, did not wait for the elections. On Monday, he announced he was throwing in the towel.
On Wednesday, the day of the vote, Prime Minister will certainly face a civil service strike, the first since he took office in late January .
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