New Greek Bailout Talks Start, Creditors Seek More Action

Talks between Greece and its international creditors on a third bailout began in Athens on Monday but the lenders want to see more reforms turned into law before they disburse the first loans to keep the near-bankrupt country afloat.

The government of Prime Minister Alexis Tsipras has pushed two packages of measures through parliament this month as conditions for starting negotiations on a three-year loan programme worth up to 86 billion euros (£61.2 billion) to keep Greece in the euro zone.

A spokeswoman for the European Commission said teams from the creditor institutions were now in Athens. “Work has started, meaning that the institutions are talking to the Greek authorities,” she said.

The talks had been due to start last Friday, but were delayed because of organisational and security issues.

“Negotiations on a Memorandum of Understanding should now progress as swiftly as possible,” Commission spokeswoman Mina Andreeva told a news briefing. Both sides say they want a deal concluded before Aug. 20.

Greece came close to the brink during a long stand off between the government and its creditors, with Athens missing a debt repayment to the International Monetary Fund and forced to close the country’s banks for three weeks.

Voters angered by years of austerity demanded by the creditors rejected an earlier bailout offer in a referendum, but Tsipras later agreed in Brussels to the lenders’ terms as the crisis deepened.

The institutions involved in the talks are the European Commission, the European Central Bank and the IMF, as well as the euro zone’s rescue fund, the European Stability Mechanism (ESM).

EU officials said the heads of mission of the Commission and the ECB were already on the ground and the new IMF mission chief was due in Athens by Friday to hold talks on a political level.


Craig Erlam
Based in London, England, Craig Erlam joined OANDA in 2015 as a Market Analyst. With more than five years' experience as a financial market analyst and trader, he focuses on both fundamental and technical analysis while conducting macroeconomic commentary. He has been published by The Financial Times, Reuters, the BBC and The Telegraph, and he also appears regularly as a guest commentator on Bloomberg TV, CNBC, FOX Business and BNN. Craig holds a full membership to the Society of Technical Analysts and he is recognized as a Certified Financial Technician by the International Federation of Technical Analysts.