Greece Fails to Secure Next Bailout Installment

Greece has failed to secure a deal to unlock the next instalment of its multi-billion-dollar bailout after talks with eurozone finance ministers broke down.
Eurogroup head Jeroen Dijsselbloem said there was still a gap “between what could be done and what some of us had expected should be done”.
Nonetheless, he said they were “very close” to an agreement.

Informal talks are expected to continue ahead of the group’s 15 June meeting.

The Brussels-based meeting was aimed at deciding whether Greece had done enough to receive a €7.5bn (£6.4bn; $8.3bn) loan plus debt relief.
The cash is vital for Greece to avoid defaulting on a debt repayment due in July.

To secure the funds, the country has had to enact a series of economic reforms.

The International Monetary Fund and Germany are reported to have disagreed over how to help ease the country’s debts once its rescue programme ends next year.
The IMF’s participation in Greece’s latest bailout hinges on resolving this issue.

“The feeling was…. more work was needed to be able to have that kind of clarity that the financial markets understood and the Greek people understood (of) what to expect at the end of the programme period in terms of debt relief,” Greek Finance Minister Euclid Tsakalotos said.

via BBC

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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 has been published by The MarketWatch, Reuters, the Wall Street Journal and The Globe and Mail, and he also appears regularly as a guest commentator on networks including Bloomberg and BNN. 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