Greece Loan Controversy Not Yet Settled

Despite this past weekend’s announcement that the eurozone would make upwards of 45 billion euros (US$61 billion) available to Greece in emergency funding, comments made Monday make it clear that the issue is not entirely settled. Germany continues to be a dissenting voice and it is obvious to even the casual observer that Germany – which is expected to provide more than 25 percent of the total loans – is not entirely pleased with the way events have unfolded.

A German official said on Monday that loans offered at an expected five percent – a bargain of nearly two percent over the latest market-offered rates on Greek bonds – would only be provided as a “last resort”.

“The fact that a fire extinguisher has been mounted on the wall does not mean that it will be used,” Chancellor Angela Merkel’s spokesman Christoph Steegmans told a regular briefing in Berlin.

Source: AFP News

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