Business | Daily | Tourist
INFORMATION SERVICES

BRUSSELS — Greece has made progress in talks with creditors but “more time and effort” is needed to reach a deal to give the cash-strapped country vital rescue money, the Eurozone’s top official said May 11.

Jeroen Dijsselbloem said after a meeting of the Eurozone’s 19 finance ministers that negotiations have “advanced” and that “important progress” is being made.

However, he said “more time is needed to bridge remaining gaps” to reach a comprehensive agreement on the reforms Greece must make in exchange for more loans.

He also warned that if Greece wanted to hold a referendum on any eventual deal, that may hold up payment of the funds, which the creditors will only hand over when the reforms are being implemented.

“There are time constraints and liquidity constraints and hopefully we will reach an agreement before time runs out and before money runs out,” said Dijsselbloem.

Greece is facing a cash crunch that could see it go bankrupt within weeks and possibly leave the euro currency. It has for over three months been trying to agree on a list of reforms and budget measures to get a bailout loan — worth 7.2 billion euro ($8 billion) — that will help it pay upcoming debts.

Earlier May 11, Greece said it had given the go-ahead to make a big debt repayment worth 757 million euros ($844 million) to the International Monetary Fund due May 12. But it will have trouble meeting other repayments in the following weeks.

Greek finance chief Yanis Varoufakis said “there has been considerable convergence” in the talks over recent weeks but that it was primarily because of concessions made by his government.

He conceded his disappointment that there has yet to be a firm agreement on giving Greece the rescue loans but that discussions are taking place “in good spirits.”

In the event of a debt default, Greece could have to put controls on the flow of money through its banks and eventually even drop out of the euro altogether.

Despite three months of talks, Greece and its creditors have failed to agree on further reforms and savings Athens needs to qualify for the loan installment.

Greece hasn’t had any bailout money since last August and has relied on its own resources.

Whether Greece will default on its debts and leave the euro is one of the biggest uncertainties surrounding the global economy. Most stock markets in Europe were trading lower, with Athens’ main index down 2.5 percent.

Greece’s left-led government was elected in January on a mandate to end crippling austerity policies, blaming them for the parlous state of the economy.

The budget cuts required in return for 240 billion euros worth of rescue loans contributed to a massive shrinkage in the Greek economy and the sky-rocketing of unemployment and poverty.

The Greek government has indicated it will reject any deal that doesn’t guarantee a credible prospect of ending its economic crisis. It has hinted at a possible referendum on any deal that runs counter to its electoral mandate.

German Finance Minister Wolfgang Schaeuble said it “could be perhaps a correct step to let the Greek people decide.”

Back in 2011, Greece’s then prime minister, George Papandreou, floated the idea of a referendum on Greece’s bailout but was rebuked by his counterparts in Europe.

“The decision lies with Greece,” Schaeuble said. “We just want to help Greece, but Greece must do its part as well.”

Dijsselbloem said it’s every country’s right to call a referendum but warned that the disbursement of bailout funds may not be made if implementation of the reforms hasn’t started.

(LORNE COOK and PAN PYLAS)

The post Greece Makes Progress; Deal Still Elusive, No Aid appeared first on The National Herald.

Source: The National Herald
Share it now!
More
Who We Are

GQS acts as an “information representative” providing a variety of accurate and authoritative analytics and responses About Greece. Our field of expertise ranges from simple Daily Life questions related to Tourism or the History of Greece, up to large Business related projects such as Economic Research, Human Resources Selection or Real Estate Services.

Find out more

Contact Us

Are you interested in obtaining any kind of information about Greece?

Let us help you!

If your requirements go beyond simple services and you want specialized information, you will receive a detailed email for any charges.

  • Weather

    Locations:
    Athens
    October 17, 2017, 8:53 am
    Partly sunny
    Partly sunny
    19°C
    real feel: 18°C
    current pressure: 1030 mb
    humidity: 67%
    wind speed: 2 m/s NW
    wind gusts: 2 m/s
    UV-Index: 1
    sunrise: 7:35 am
    sunset: 6:45 pm
     
  • Currency