With Greece poised to miss a deadline this month that would conclude a review of its latest bailout, the government of Alexis Tsipras risks reprising the antagonistic relationship with his country’s creditors that nearly knocked the nation out of the common currency in 2015.
Over the weekend, Prime Minister Tsipras lashed out again at the International Monetary Fund, one the institutions monitoring Greece’s rescue, as the auditors insisted on legislation that would trigger further budget cuts if fiscal targets are missed. That gives Athens about a week to reconcile those differences.
Even though the European institutions have disagreed with IMF projections and said Greece didn’t need the extra measures to meet requirements set out in its 86 billion-euro ($92 billion) bailout, they have fallen into line to keep the fund involved, according to a person with knowledge of the talks. Blaming the IMF for the deadlock is a strategy that may not work anymore as Tsipras faces a more aligned group.
This article is for general information purposes only. It is not investment advice or a solution to buy or sell securities. Opinions are the authors; not necessarily that of OANDA Corporation or any of its affiliates, subsidiaries, officers or directors. Leveraged trading is high risk and not suitable for all. You could lose all of your deposited funds.