Tuesday Jan 27, 2015 Search
Weather | Athens
15o C
9o C
News
Business
Comment
Life
Sports
Community
Survival Guide
Greek Edition
Dijsselbloem says EU to decide Tuesday on pace of Greek payouts

By Corina Ruhe, Nikos Chrysoloras & Rebecca Christie

Euro area finance chiefs will decide tomorrow on the amount and pace of Greece’s next aid payments, Dutch Finance Minister Jeroen Dijsselbloem said.

Greece needs another infusion of money to avoid default in May, when it has to repay 12.5 billion euros ($17.2 billion) of government debt. The Mediterranean nation has faced repeated delays in accessing a 130 billion-euro bailout package, its second, and hasn’t received a payment since December.

“The speed of disbursements will be adjusted to the needs, but we will decide Tuesday,” Dijsselbloem, who heads meetings of euro-area finance ministers, said in an interview late yesterday en route to Larnaca, Cyprus. He said “a bit more than 8 billion is now foreseen” for the next aid tranche.

Dijsselbloem said euro-area ministers will focus on current developments and postpone talk of debt relief or a third rescue package for Greece. Ministers also will examine conditions in Cyprus, where the economy has been hit hard by the conditions that forced it to seek aid last year.

Greece and Cyprus have been pummeled by the euro area’s sovereign debt crisis, which forced five of the euro area’s 18 nations to seek rescues. Ireland and Spain already have exited their aid programs, and Portugal is seeking to regain full access to financial markets as its bailout approaches its end in May.

Issuing debt may also be possible for Greece depending on market conditions, Dijsselbloem said.

“Greece is now working on returning to the capital market; they want to do that this year,” Dijsselbloem said. “This will of course be careful, with limited amounts, but it is important to wait for that and see how it goes.”

To win the next disbursement, Greece needed to pass legislation implementing hundreds of economic reforms, from changing the way banks are recapitalized to lifting restrictions on the sale of goods and services. The bill was approved early today in a contentious vote that led to further divisions in Greece’s parliamentary majority.

Three legislators in Greece’s governing coalition, including former Prime Minister George Papandreou, didn’t vote for all of the articles of the bill. Another member of parliament who abstained, Nikitas Kaklamanis, was expelled from the coalition, thus leaving the government with 152 of 300 parliament members.

If Greece does need a third program, it will be smaller than the nation’s previous bailouts, the Dutch finance chief said. The euro area also could offer Greece debt relief, which could come in the form of lower interest rates or longer maturities on existing loans, he said.

“That discussion will take place after summer,” Dijsselbloem said, adding that Greece’s economic performance would be a factor in how the euro area proceeds.

German Finance Minister Wolfgang Schaeuble said today that he’s “relaxed” about the impact of Greece’s problems on the euro. “Financial markets meanwhile understand that the euro can’t go down the drain even if Greece is having problems,” he said in remarks to students in Berlin.

For Cyprus, the economy is expected to continue to shrink as the country grapples with the aftermath of its financial crisis, Dijsselbloem said. The island nation is “performing a bit better” compared to expectations when it received its 10 billion-euro aid package last year and 2015 might bring some recovery, he said.

The Cypriot government has “complied with all the agreements made in the year behind us,” Dijsselbloem said. “They deserve our support.”

[Bloomberg]

ekathimerini.com , Monday March 31, 2014 (15:10)  
Consumer confidence in decline in Q4
Euro slide fuels hope of tourism growth
Quest buys Cardlink from Alpha, Eurobank
SYRIZA calls for all taxes to be paid on time
Greek F-16 crash in southeastern Spain kills 10
A Greek fighter jet crashed into parked aircraft during a NATO training exercise on Monday in southeastern Spain, killing at least 10 people and injuring another 13, Spanish defense authorit...
PASOK heading for party congress, leadership contest
PASOK is due to hold a party congress in March, when the leadership of the party will also be at stake, after a poor showing in the elections. Sources said that PASOK leader and outgoing Dep...
Inside News
BASKETBALL
Basket League favorites survive challenges on the road
PAOK consolidated its position in the top three of the Basket League with a triumph at AGO Rethymnou on Saturday, while Olympiakos and Panathinaikos emerged victorious from their tough away ...
SOCCER
Olympiakos overcomes depleted OFI at Iraklio
Easy though it may seem, Olympiakos’s 3-0 win at depleted OFI Crete was rather difficult on Saturday, but was enough to keep the Reds on top on Saturday, as they have maintained their two-po...
Inside Sports
COMMENTARY
SYRIZA´s win will test institutions
Greece was at an impasse, with a government that did not believe in what it was doing and an opposition that declared with passionate intensity that whatever the government did was wrong and...
COMMENTARY
The challenge for Tsipras and others
A few years ago, an associate of mine who had met with Alexis Tsipras when the young politician was running for Athens mayor told me how impressed he had been by his confidence. Tsipras was ...
Inside Comment
SPONSORED LINK: FinanzNachrichten.de
SPONSORED LINK: BestPrice.gr
 RECENT NEWS
1. Basket League favorites survive challenges on the road
2. Consumer confidence in decline in Q4
3. Euro slide fuels hope of tourism growth
4. Quest buys Cardlink from Alpha, Eurobank
5. SYRIZA calls for all taxes to be paid on time
6. Stock traders none too pleased with election result
more news
Today
This Week
1. SYRIZA heads for historic victory but without majority
2. Greek Elections 2015: The day after | LIVE
3. SYRIZA's win will test institutions
4. Tsipras forges anti-austerity coalition in challenge to EU
5. Finnish PM says ready to discuss bailout extension for Greece
6. Tsipras moves to form anti-austerity government after crushing victory
Today
This Week
1. Greek Elections 2015 | LIVE
2. Greek Elections 2015 | LIVE
3. SYRIZA heads for historic victory but without majority
4. Greeks fork out nearly 5 pct of their incomes on telecom services
5. QE exclusion a ‘de facto Grexit’
6. Unsupervised voting
Advertiser Link
SMART WATER Project: Outputs and conclusions of the final conference
   Find us ...
  ... on
Twitter
     ... on Facebook   
About us  |  Subscriptions  |  Advertising  |  Contact us  |  Athens Plus  |  RSS  |   
Copyright © 2015, H KAΘHMEPINH All Rights Reserved.