Greece Confirms Loan Extension Request

Greece will ask the eurozone for a six-month extension of its European loan on Wednesday, a Greek government official has confirmed.

But the loan would not be a renewal of the current bailout agreement, which includes strict austerity measures.

On Monday night, Greece rejected a plan to extend its €240bn (£178bn) bailout, describing it as “absurd”.

Greece is likely to run out of money if a deal is not reached before the end of February.

“We should extend the credit programme by a few months to have enough stability so that we can negotiate a new agreement between Greece and Europe,” Greek Finance Minister Yanis Varoufakis told Germany’s ZDF.

Government spokesman Gabriel Sakellaridis confirmed that meant Mr Varoufakis would be asking for a six-month extension to Greece’s current loan.

Mr Sakellaridis told Greece’s Antenna TV: “Let’s wait today for the request for an extension of the loan contract to be submitted by Finance Minister Varoufakis.

“All along deliberations are going on to find common ground, we want to believe that we are on a good path. We are coming to the table to find a solution.”

But he added the Greek government would not back down on issues that it considered non-negotiable.

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
Alfonso Esparza

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