EU Extends Greek Bailout for 2 Months

European finance ministers on Monday gave bailed-out Greece a two-month extension of its financial lifeline as they argue about whether Athens should impose more budget austerity to meet conditions for the last installment of aid.

Jeroen Dijsselbloem, head of the group of finance ministers from countries that use the euro, said after the meeting in Brussels that the group would say yes to a request from Greece to push its current bailout deal into next year.

Greece’s current bailout program was slated to run out at the end of the year and the country was to switch to a standby credit line with less onerous conditions. But its latest budget has failed to pass muster with international creditors. That means Greece hasn’t been able to pass the final review of its compliance with its rescue package and tap the last bailout loan installment of 1.8 billion euros ($2.2 billion).

Greece was rescued from a financial and economic crisis with the help of 240 billion euros ($297 billion) in loans from other eurozone governments and the International Monetary Fund. The country also defaulted on government bonds.

Greek Prime Minister Antonis Samaras is eager to reach the end of the aid program as the country recovers economically because the loans came with politically unpopular conditions.

via Mainichi

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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