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Greek’s creditors and Greece have been upbeat and optimistic on brokering a deal which will come to fruition within a couple of days which will see billions of euros flow into Greece so as to help it kick start the financial reform process.
If Greece is to pay off debt of 3.5 billion euros to the European Central Bank that matures on the 20th of August 2015, this deal must be settled between the two. Approximately 86 billion euros is likely to flow into Greek’s financial system if this deal come through.
Greek Finance Minister Euclid Tsakalotos said that the negotiations were going better than expected and that he was 'encouraged' by the progress made by the parties concerned.
"We are moving in the right direction and intense work is continuing," said Mina Andreeva, the Commission’s spokeswoman.
If this deal comes through, this will be Greek’s third bailout since 2010. Greece really needs the negotiations to end in a good note since it depends on this financial stimulus to stave off bankruptcy and keep the country inside the European Union.
Earlier, the torturous negotiations had been bogged down by details such as pension reforms and the time shops are scheduled to open. This naturally had an adverse effect since these talks were peppered with angry outbursts about regarding sovereignty, responsibility and even blackmail.
However, as per sources who are familiar with the matter speaking on the condition of anonymity, said that Greek’s creditors felt that Greece was being "very, very cooperative".
"They (the Greeks) are really working now. I think (Prime Minister Alexis) Tsipras has told his ministers to cooperate," said an euro zone official.
As per the source, the Greeks were engaging in talks and were well prepared for it. Areas of substance had been comprehensively covered including, fiscal policy, pension reforms, labor markets, privatization and administrative reforms.
The talks appeared to be a boost for the current Finance Minister, who is a soft spoken Oxford trained academic as opposed to the fiery flamboyant Yanis Varoufakis, who erstwhile was heading Greek’s Finance Ministry.
Having met representatives of the IMF, the European Central Bank and from the European Stability Mechanism (ESM), Tsakalotos was happy to say that "Everything will be concluded this week."
Olga Gerovasili, the Greek government’s spokeswoman said that drafting of the bailout accord will start today. It is to be noted that the bailout accord needs the approval of the Greek's fractious parliament.
It is very likely that Alexis Tsipras will be able to steer the accord through Greek's fractious parliament and finally bring a sense of closure to the traumatic six months which saw Greece at the very edge of a financial precipice.
"I think that we will have a deal by the 18th of this month," said Gerovasili, the Greek government’s spokeswoman. She felt that if all sides stuck to their side of the bargain an agreement is very much on the cards.
"Agreement is possible in order to allow for a first disbursement under the new ESM program in time for the payment Greece is due to make on Aug. 20 (to the ECB). It is an ambitious, yet realistic timetable," said Andreeva.
"The option of another bridge loan is still there but there is a feeling that with the way things are going now there could be a deal on the full bailout so that there could be a disbursement on the 19th," said a a euro zone source.
Source(s): Reuters.com
If Greece is to pay off debt of 3.5 billion euros to the European Central Bank that matures on the 20th of August 2015, this deal must be settled between the two. Approximately 86 billion euros is likely to flow into Greek’s financial system if this deal come through.
Greek Finance Minister Euclid Tsakalotos said that the negotiations were going better than expected and that he was 'encouraged' by the progress made by the parties concerned.
"We are moving in the right direction and intense work is continuing," said Mina Andreeva, the Commission’s spokeswoman.
If this deal comes through, this will be Greek’s third bailout since 2010. Greece really needs the negotiations to end in a good note since it depends on this financial stimulus to stave off bankruptcy and keep the country inside the European Union.
Earlier, the torturous negotiations had been bogged down by details such as pension reforms and the time shops are scheduled to open. This naturally had an adverse effect since these talks were peppered with angry outbursts about regarding sovereignty, responsibility and even blackmail.
However, as per sources who are familiar with the matter speaking on the condition of anonymity, said that Greek’s creditors felt that Greece was being "very, very cooperative".
"They (the Greeks) are really working now. I think (Prime Minister Alexis) Tsipras has told his ministers to cooperate," said an euro zone official.
As per the source, the Greeks were engaging in talks and were well prepared for it. Areas of substance had been comprehensively covered including, fiscal policy, pension reforms, labor markets, privatization and administrative reforms.
The talks appeared to be a boost for the current Finance Minister, who is a soft spoken Oxford trained academic as opposed to the fiery flamboyant Yanis Varoufakis, who erstwhile was heading Greek’s Finance Ministry.
Having met representatives of the IMF, the European Central Bank and from the European Stability Mechanism (ESM), Tsakalotos was happy to say that "Everything will be concluded this week."
Olga Gerovasili, the Greek government’s spokeswoman said that drafting of the bailout accord will start today. It is to be noted that the bailout accord needs the approval of the Greek's fractious parliament.
It is very likely that Alexis Tsipras will be able to steer the accord through Greek's fractious parliament and finally bring a sense of closure to the traumatic six months which saw Greece at the very edge of a financial precipice.
"I think that we will have a deal by the 18th of this month," said Gerovasili, the Greek government’s spokeswoman. She felt that if all sides stuck to their side of the bargain an agreement is very much on the cards.
"Agreement is possible in order to allow for a first disbursement under the new ESM program in time for the payment Greece is due to make on Aug. 20 (to the ECB). It is an ambitious, yet realistic timetable," said Andreeva.
"The option of another bridge loan is still there but there is a feeling that with the way things are going now there could be a deal on the full bailout so that there could be a disbursement on the 19th," said a a euro zone source.
Source(s): Reuters.com
