👀 Ones to watch: The MOST undervalued shares to buy right nowSee Undervalued Shares

Greece might get more credit from EU after bailout exit - source

Published 13/10/2014, 20:47
© Reuters A sculpture is seen at the reception hall of the Athens Stock Exchange

By Tom Körkemeier

LUXEMBOURG (Reuters) - Greece might secure a further safety net of credit from its euro zone partners if it manages to meet the strict terms required to exit its bailout at the end of this year, a source close to discussions told Reuters on Monday.

Discussions with Greece, which has had a total of 240 billion euros (189.48 billion pounds) in loans, focussed on a new line of credit with the European Stability Mechanism, the source said.

Germany's Handelsblatt newspaper earlier quoted German government sources saying a precautionary credit could help ensure Athens stuck to a programme of economic reforms prescribed by the EU in return for a bailout of public debt.

The Athens government is in negotiation with EU institutions and the International Monetary Fund ahead of the expiry of its bailout package with the European Union on Dec. 31. Greece has said it wants its bailout to finish when EU funding stops, though the IMF is scheduled to stay through to early 2016.

An exit from supervision by the widely resented international "troika" of lenders -- the European Commission, European Central Bank and International Monetary Fund -- would be popular with voters. Political analysts say a snap election is likely next March.

Euro zone ministers meeting in Luxembourg on Monday warned that, despite improvements, the Greek economy remains fragile.

Separately, Eurogroup chairman, Dutch Finance Minister Jeroen Dijsselbloem, said any credit extended to Greece after a bailout exit would also be conditional on economic reforms.

The Greek government has been keen to avoid further detailed conditions for reform, which have been deeply unpopular.

Dijsselbloem told reporters it was premature to speak of a precautionary line of credit before a review of Athens' reform efforts by the troika was complete.

There was consensus in the Eurogroup of finance ministers that any Greek exit should be "sustainable", he said.

© Reuters. A sculpture is seen at the reception hall of the Athens Stock Exchange

The disclosure in late 2009 that Greece had cheated on its figures to conceal a massive budget deficit triggered a rolling crisis that nearly tore Europe's monetary union apart.

(Writing by Alastair Macdonald; Editing by Louise Ireland)

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.