Greece will receive next tranche of EU-IMF aid on time
Greece will receive the next tranche of EU-International Monetary Fund (IMF) aid package on time in September, Greek Deputy Prime Minister and Finance Minister Evangelos Venizelos said Monday, rejecting scenarios of potential delays and obstacles due to the ongoing debate within the EU over the loan collateral.
“Our financing needs next month will be covered. There are funds available. There are about 45-B Euros (US$57.69-B) still available from the 1st bailout pact,” stressed Mr. Venizelos during a press briefing at the Finance Ministry.
Some EU member countries over the past 2 wks have asked Greece for cash collateral in advance in exchange for their contributions to the fresh bailout package for Greece agreed this July.
Mr. Venizelos acknowledged that there are difficulties in efforts to counter the Greek debt crisis, but expressed optimism that eventually goals will be achieved.
Meeting in full the fiscal targets amidst deep recession is not an easy task, he noted, adding that according to the latest estimations the Greek economy will shrink by over 4.5% this year, instead of the 5.3% foreseen by some analysts.
Mr. Venizelos underlined that he will discuss all new challenges with the delegation of EU-IMF auditors due in Athens next week for a regular review of Greek finances ahead of the disbursement of the 6th 8-B Euro (US$11.49-B) aid installment this fall.
A technical team of inspectors started a preliminary round of deliberations with Greek officials Monday.
The Greek minister also reassured that the Greek banking system is strong and that a rollover of Greek bonds by private creditors, as agreed in the July 21 EU summit, is advancing well and is expected to wind up by November.
Paul A. Ebeling, Jnr.
Paul A. Ebeling, Jnr. writes and publishes The Red Roadmaster’s Technical Report on the US Major Market Indices, a weekly, highly-regarded financial market letter, read by opinion makers, business leaders and organizations around the world