German Finance Minister Says 11 Billion in Greek Aid Not Unrealistic

German Finance Minister Wolfgang Schaeuble said an estimate by the International Monetary Fund that Greece will need an additional 11 billion euros to see it through to 2015 was “not completely unrealistic.”

Schaeuble provoked a storm last week when he said more explicitly than before that Greece would need a third bailout, going much further than Chancellor Angela Merkel had done. The government then sought to play down his remark.

“The estimate of 11 billion euros is not completely unrealistic. At any rate we are talking about a fraction of the amount of previous bailouts. A lot has been achieved already, but Greece is still in a crisis of adjustment,” he told the Passauer Neue Presse newspaper in an interview published in its Wednesday edition.

He ruled out the possibility of any additional debt write-down.

via Reuters

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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