Greek debt crisis

No Quick Fix to Athens’ Woes

Greece May 3 bloomberg
Greece is holding on, waiting for another lifeline.
  • Why it matters

    Why it matters

    Even if Greece reaches a deal with its lenders, it won’t get access to the  bailout funds quickly, meaning it will be reliant on ECB support to avoid default.

  • Facts


    • The ECB has limited Greece to issuing €15 billion in T-Bills. This ceiling has already been reached.
    • The ECB last week raised the limit on emergency liquidity assistance (ELA) to Greece to €76.9 billion.
    • Greece hopes to reach a deal by May 11, the day before it is due to repay €750 million to the IMF.
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Greek Prime Minister Alexis Tsipras is clearly hoping that if he makes enough concessions to his country’s international creditors, he will receive the bailout money his country desperately needs.

But even if an agreement is reached this week, the money won’t be paid out quickly, according to several people familiar with the negotiations. That could leave Greece still precariously close to default.

Greece and its creditors, the International Monetary Fund, the European Union and the European Central Bank, have been holding intensive talks over the weekend trying to seek a way out of the impasse.

Since 2010 Greece has had to rely on the lenders to stay afloat, receiving two bailouts worth €240 billion, or $267 billion.

The election of Mr. Tsipras and his radical-left Syriza party in January has caused lenders to hold off paying the outstanding part of the current bailout. The country will also likely need another lifeline once the current program runs out in June.

With the negotiating teams meeting again on Monday, sources say that progress is being made. The Greek and international negotiators have spoken of a “better working atmosphere” after weeks of acrimony.

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