There will be no third Greek bailout until after Angela Merkel is safely reelected later this month. Once that’s in the bag, though, there’s no time to waste, because the IMF has instituted a very sensible rule for dealing with immediate crises.
The euro zone is likely to decide on a third bailout for Greece in November, after international inspectors finish an assessment of Greece’s struggles to carry out painful reforms, officials said on Thursday.
The International Monetary Fund and Greece estimate that Athens will need 10-11 billion euros in new financing in 2014- 2015 above what the euro zone and the International Monetary Fund have agreed to so far…..
Greece has already had two international bailouts since 2010, and more money for it is controversial in Germany which has elections on September 22. Voters there are tired of helping others after three years of the sovereign debt crisis.
Greece will not need any additional funds until the second half of 2014, but a decision must be taken in November at the latest because the IMF can only participate in the Greek bailout if the program is fully funded 12 months ahead.
“As far as the potential need for a third program for Greece is concerned, it’s clear that despite recent progress, Greece’s troubles will not have been completely resolved by 2014,” Eurogroup President Jeroen Dijsselbloem told the European Parliament on Thursday.
Decision on third Greek bailout set for November: officials [Reuters]