June 15, 2017
Euro-area finance ministers meeting in Luxembourg will seek to close a key chapter in Greece’s bailout drama on Thursday, unlocking aid needed to end months of uncertainty while stopping short of a definitive deal to ease the country’s debt load.
A resolution at the so-called Eurogroup meeting would free up an expected 8.5 billion euros ($9.5 billion) in cash the Aegean state needs to repay bonds maturing next month. However, the euro-area finance chiefs, including Greece’s Euclid Tsakalotos, likely won’t finalize details on how to give Greece breathing room on the future of its debt obligations, a situation the International Monetary Fund has called unmanageable in the long term.
“The time is right to conclude the second review and give a green light for the disbursement aimed to cover Greece’s summer liquidity needs,” Slovak Finance Minister Peter Kazimir said in an interview in Bratislava before the meeting. “I expect Euclid will leave Luxembourg with a briefcase full of money.”
The IMF, which is mulling participation in the rescue program, has demanded more clarity on future relief measures to make the nation’s 315 billion euros of obligations sustainable. While all the creditors say Greece has completed the necessary economic reforms to receive the next slice of aid, euro-area nations are reluctant to further ease repayment terms on bailout loans.