Troika Offers Greece Third Bailout Program, Prepares Emergency Plan If No Deal
On the heels of Thursday’s failed Eurogroup meeting and heading into what is again being presented as an all or nothing, “Lehman weekend” for Greece and its creditors, reports suggest the troika has offered Greece a third bailout program:
- GREEK CREDITORS OFFER EU15.5B OVER NEXT 5 MONTHS: HANDELSBLATT
- ECB, IMF, EU OFFER GREECE 3RD AID PROGRAM: HANDELSBLATT
- GREECE’S CREDITORS PROPOSE EU15.5B TIED TO AID DEAL: OFFICIAL
Here are the details, according to Bloomberg (citing an unnamed EU official):
EU creditor proposal foresees EU8.7b in EFSF funds: officialCreditor proposal foresees EU3.3b in SMP profits: EU official
Creditor proposal foresees EU3.5b in IMF funds: EU official
If true, this would mark a dramatic about-face for the IMF which had suggested it would not be interested in participating in a third Greek program. Similary, lawmakers in Berlin have voiced their opposition to a third bailout program for Athens as the German public has grown tired of throwing money at the Greek ‘problem.’
European finance ministers will meet again on Saturday. Angela Merkel, who met with Greek PM Alexis Tsipras and French President Francois Hollande on Friday, has indicated that a deal must be struck before the market opens on Monday. Here’s a bit of color from Reuters:
The leaders of Germany and France discussed extending Greece’s bailout programme and providing financing with Greek Prime Minister Alexis Tsipras on Friday on the eve of a decisive meeting of euro zone finance ministers, a French source said.
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