Greece will only be able to access to a precautionary credit line, currently being discussed between Greek government officials and their eurozone counterparts, if the country finds itself locked out of capital markets, according to sources in Brussels where a European Council summit was in progress on Friday.
If Greece needs additional funding due to its failure to meet fiscal targets set by its international creditors, however, that credit line will remain inaccessible, the same sources indicated.
The condition is one that creditor states are said to have sought as it will also commit any new Greek government that might arise, should snap polls arise early next year, to honor the fiscal and structural reform targets that have been agreed.
According to sources, the credit line currently being discussed would be in place for one year. However all the conditions related to the buffer are still in progress with final decisions not expected until a European Council summit scheduled for December 18.
The role of the International Monetary Fund is also under examination, following Greek calls for an early exit from the IMF’s arm of the country’s bailout. The likeliest scenario is that the Fund will not contribute funds to the credit line but will play a technical and advisory role.