BRUSSELS -- eurozone officials are considering delaying a €5.2-billion ($6.7-billion) payment to Greece as the political backlash grows in Athens against a bailout program negotiated with international creditors, officials familiar with the discussion said Wednesday.
The European Commission said earlier this week that Greece is due to receive the funds Thursday, part of a previously approved disbursement from the €130 billion bailout sealed in March with the eurozone and the International Monetary Fund. But Germany, Finland and others are wary of making the payment because of comments from Greek politicians following Sunday's elections calling for the bailout to be renegotiated.
Senior eurozone finance officials will discuss the issue in conference calls over the next day, an official said.
Greece needs the funds mainly to repay €3.3 billion in Greek bonds maturing May 18 that are held by the European Central Bank and national eurozone central banks.
Some governments want to delay the payment, but the eurozone's previous approval of the tranche may leave them little wiggle room.
"The problem is, how much freedom do you have, legally speaking?" the official said.
The Greek elections saw the main parties of the previous governing coalition, the Socialist Pasok party and conservative New Democracy, lose their parliamentary majority. Those two parties in February pushed a bruising austerity program -- the price for securing more international aid -- through parliament, defying mass public protests.
To read more, go to The Wall Street Journal
International Monetary Fund, European Commission, international creditors, European Central Bank, eurozone, political backlash
No comments:
Post a Comment