Greece Faces Bailout Standoff as it Missed Reform Promises

Greece is facing another bailout standoff with its creditors amid reports that eurozone countries will refuse to release additional funds to it this month.

Athens has frustrated its peers in the single currency by implementing only two of the 15 reforms that were a condition of last year’s rescue package. EU officials told German daily Handelsblatt that Greece has delayed privatising state assets, adding to the frustrations of eurozone finance ministers who will discuss progress on Friday.

Further funds are due to be disbursed under the European Stability Mechanism (ESM), which will give Greece up to €86bn (£72bn) of financial assistance by 2018 in return for reforms.

After approving a first tranche of €10.3bn this spring, of which €7.5bn has so far been released, the 19 finance ministers are due to disburse the rest this month but might withhold payment for the rest of the year. A further finance ministers’ meeting is planned for 21 September.

via The Guardian

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Alfonso Esparza

Alfonso Esparza

Senior Currency Analyst at Market Pulse
Alfonso Esparza specializes in macro forex strategies for North American and major currency pairs. Upon joining OANDA in 2007, Alfonso Esparza established the MarketPulseFX blog and he has since written extensively about central banks and global economic and political trends. Alfonso has also worked as a professional currency trader focused on North America and emerging markets. He holds a finance degree from the Monterrey Institute of Technology and Higher Education (ITESM) and an MBA with a specialization on financial engineering and marketing from the University of Toronto.
Alfonso Esparza