NEWS

Bailout draft due but Athens sees deal after Aug 15

bailout-draft-due-but-athens-sees-deal-after-aug-15

Over the weekend the government is expecting to receive the draft of its third bailout with international lenders, allowing it only a few days to agree changes and then pass it through Parliament in time to avoid needing a new bridge loan.

Government sources told Kathimerini that Greek officials are likely to have the draft Saturday and will then make their suggestions known to lenders. It is thought that Greece will have to pass the agreement through Parliament by Thursday if there is going to be enough time for the Eurogroup and other eurozone parliaments to approve it so Greece can receive fresh bailout funding to pay a 3.2-billion-euro bond held by the European Central Bank on August 20.

However, Athens suggested that the new agreement would not be ready for MPs to vote on before August 15, which could mean the eurozone having to provide a new bridge loan to Greece.

According to the government, this timeline was agreed on Thursday when Prime Minister Alexis Tsipras met French President Francois Hollande in Egypt on the sidelines of a ceremony to inaugurate the New Suez Canal.

“The objective is for the negotiations on the program to be concluded at the end of August,” Hollande told reporters. “We know it’s difficult but we must make sure that the conditions are met, in a good spirit.

“For now I believe the atmosphere is right and discussions are going in the best of directions,” he added.