Cyber Monday Deal: Up to 60% off InvestingProCLAIM SALE

Greek finmin says bailout likely to be extended beyond end Feb

Published 13/01/2015, 19:56
© Reuters. Greece's Finance Minister Gikas Hardouvelis speaks during an interview with Reuters in Athens

ATHENS (Reuters) - A new Greek government that will take power after a snap election on Jan. 25 will have limited time to conclude a stalled bailout review and may have to return leftover bank bailout funds, the Greek finance minister said on Tuesday.

Greeks are voting in snap polls in less than two weeks with leftist party Syriza, which wants to renegotiate Greece's international bailout and ask Europe to write off a big chunk of the country's debt, consistently ahead in opinion polls.

"The government that will be elected will have the task of concluding the last review of the economic adjustment programme by the end of February 2015," Gikas Hardouvelis told a news conference.

"The time is not long and an extension is likely to be required," he said.

Hardouvelis - part of the government of centre-right Prime Minister Antonis Samaras - said if the bailout programme is not concluded within an "acceptable" time frame, Greece will need to return leftover bank rescue funds.

"Without the completion of the plan, Greece will be required to return 11.4 billion euros which is currently held by the Hellenic Financial Stability Fund," he said.

He said that if that were to happen Greek debt would be reduced but the country would be deprived of European funds that could be of use as a financial cushion.

Greece must repay about 2 billion euros ($2.36 billion) in interest rates to private bondholders in February and about 1.6 billion euros for an IMF loan that matures in March.

Hardouvelis warned that without a timely conclusion to the bailout programme, Greek banks would lose access to cheap European Central Bank funding and it would be almost impossible for them to take part in any possible quantitative easing.

The ECB will weigh up whether to start printing money to buy large amounts of sovereign bonds at a meeting on Jan. 22.

© Reuters. Greece's Finance Minister Gikas Hardouvelis speaks during an interview with Reuters in Athens

($1 = 0.8493 euros)

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.