International Information Centre for Balkan Studies

Greece rejects 5-month extension of existing programme offered by institutions




The government rejected the proposal of the institutions for a 5-month extension of the existing Greek programme with funding of 15.5 billion euros, Greek government sources said in Brussels (26.06.2015).

According to the sources, no funding solution can operate within the framework of the proposal tabled by the institutions and furthermore, the amount offered is not enough. There are numerous scenarios laid on the table and the important part is the overall package of a deal. They also added that the deal should not recycle the vicious circle of recession. 
Earlier, well-informed Greek sources had denounced the institutions' proposals as "worse than a memorandum" and their approach as "unacceptable," stressing that Europe is based on the values of democracy and solidarity.

Greece’s creditors earlier proposed a five-month extension of the existing program until the end of November combined with funding support worth 15.5 billion euros, community sources said on Friday. The sources said that the proposal will be discussed during Saturday’s Eurogroup meeting.
Under the plan, Greece was offered 1.8 billion euros from the profits made through Greek bond holdings by Eurozone central banks (SMPs) – to be disbursed immediately to cover the country’s debt obligations and more particularly payment of an 1.6 billion euros installment to the IMF on June 30. Another 8.7 billion euros will come from unused funds of the Financial Stability Fund which will be returned to Greece, along with 3.5 billion euros in loans from the IMF and a total of 3.3 billion euros from the SMPs program.The same sources said that the IMF will disburse its funds at the end of the five-month period and after Greece has adopted and implemented all measures to be agreed with its creditors. The IMF also set a precondition that its European partners guaranteed to fund Greece for the next 12 months.

Source: http://www.amna.gr/english/articleview.php?id=10259





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