Greece Payout “Likely” to be Delayed – But no “Serious” problems spotted

The European Commission notified Berlin Tuesday that it can’t vouch yet that Greece has fulfilled all the conditions to receive its next slice of bailout loans, Germany’s deputy finance minister said in a letter to the German parliament.

The decision means the next tranche of aid for Greece will likely be delayed, but there should not be any “serious” problem with the payment, one person familiar with the situation said.

The Greek government is racing to complete a list of reforms demanded by its international lenders before they unlock a payment from the country’s 173-billion-euro ($228.1 billion) financial rescue package.

Euro zone finance ministers agreed earlier this month to unlock 4 billion euros in financing due to the Greek government — provided Athens moved to trim government payrolls and adopt other measures demanded by its creditors by July 19. Further payments are supposed to come from the International Monetary Fund in August and then from Greece’s euro-zone partners again in October.

MarketWatch

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