BUSINESS

German report raises prospect of bailout program extension

TAGS: Finance

Greece’s creditors are considering the extension of the Greek bailout program beyond August, according to a report by German daily Sueddeutsche Zeitung on Wednesday.

Citing exclusive information, the Munich-based newspaper says that the reason for that is that once again the Greek government requires more time to implement its reform obligations.

It adds that the International Monetary Fund will also have to definitively decide whether it will participate in the program, which will depend on the easing of Greece’s debt that the Europeans will decide on.

According to the report, it is not so likely anymore that an agreement on the debt will be decided within May to open the way for the entry of the IMF in the program. Instead it is more likely that negotiations will be extended through June, which is probably going to lead to the extension of the program too.

The creditors are also seeking a stricter monitoring of Greece when the program ends than in the cases of Ireland and Portugal. The German newspaper stresses that Athens is opposing that, with the Greek prime minister wanting the completion of the program and “a return to freedom”. On the contrary, the creditors believe that Greece should accept the strict surveillance.

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