ECB’s Asmussen accepts Greece may need extra financing

European Central Bank Executive Board member Joerg Asmussen said there?s a possibility that Greece will need more aid from other euro-area member states.

Even if Greece meets its budget goals, ?there could be additional need for external financing because, for example, growth is worse than was initially anticipated,? Asmussen said at an event in Berlin today. Such financial aid can only come ?from the member states of the euro zone? and not from the ECB, because that would be ?prohibited monetary state financing,? he said.

International Monetary Fund Managing Director Christine Lagarde said Sept. 24 Greece faces a financing gap that won?t be solved by budget measures because a weak economy and delayed privatizations have worsened its fiscal situation. Inspectors from the so-called troika of the European Commission, the IMF and the ECB will return to Athens on Sept. 30 to continue to assess whether Greece is meeting the terms of its bailout and can receive the next installment.

International lenders have pledged funds totaling 240 billion euros ($309 billion) to Greece. Greece?s budget deficit is due to shrink to about 7 percent of GDP this year from 9.1 percent in 2011.

?There is a budgetary gap in Greece which needs to be closed,? Asmussen said. ?The Greek government has to deliver.?


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