Germany Expects Greece to Uphold Bailout Terms

The German government expects Greece to uphold the terms of its international bailout agreement, a spokesman for Chancellor Angela Merkel has said.

But spokesman Georg Streiter declined to comment on reports that Berlin is now content that the eurozone could withstand Greece’s exit from the bloc.

Greece is holding a general election later this month, and anti-austerity party Syriza is ahead in the polls.

Syriza wants to renegotiate the terms of its international bailout.

Under those terms, the so-called troika – EU, International Monetary Fund and European Central Bank – supported Greece with the promise of €240bn (£188bn) in return for budget cuts and economic reforms.

“Greece has fulfilled its obligations in the past. The German government assumes it will continue to fulfil its contractual obligations to the troika,” Mr Streiter told reporters.

“Every new government has to abide by the contractual obligations of the previous government.”

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