International Monetary Fund (IMF) is not willing to provide further support to Greece and threatens the country with bankruptcy, as informed by German magazine “Spiegel”.
Such statement has been made by EU officials this Sunday. At this point “The Third” – European Commission, European Central Bank (ECB), and IMF are analyzing to which extent Greece has performed its obligations, stipulated by the reforms. In August-September the country is hoping to receive financial inflow of capital that would amount to 12.5 bln. euro.
It has been recently informed by Athens source that “The Third” is supposed to return to Greece on July 26. Inspectors from EU, IMF, and ECB left the country on June 09 before the meeting of Finance Ministers of eurozone. As stated by Antonis Samaras, Greece is heading for reduction and necessity to speed up reforms’ implementation:
- Greek governing coalition came to power in June, having the clear goal to reconsider the terms of financial aid in combination with economy. The idea is the following: terms may be shifted by 2-3 years and 11.5 bln. euro may be kept in 2015-2016;
- Greek society can no longer bear the additional measures of economy, as informed by the government. According to preliminary expectations, this year Greek economy is supposed to drop almost by 7%.
According to “Spiegel”, if the country receives more time to fulfill the set tasks, it will cost “The Third” extra 10-50 billion dollars. Governmental bodies of many eurozone countries are not ready to pay more for Greek credits. Besides, such countries as the Netherlands and Finland are obliged to partake in providing aid to Greece, in particular, with IMF participation.
Can Greece quit eurozone after the beginning of ESM? German edition states that the process of Greece quitting the monetary union will be controlled. So, in order to minimize the influence of governmental bodies EU will wait at least to new ESM. The Federal Constitutional Court of Germany is supposed to proclaim its decision on September 12.
In August ECB may help Greece. Instead of paying 3.8 bln. euro by the agreement with European Central Bank, Greece may issue short-term government bonds to be sold to the country’s domestic banks. They, in their turn, could leave these so-called T-bills as guarantee of new borrowings from ECB.
IS EURUSD going to collapse? Further market decline is to be expected in the nearest future, but it will not last long, as the market is at the stage of reversal uptrend, and current decline happens within new up wave. Short-term sales after rapid and small uptrends seem to be perspective for transactions, as explained by Ilya Presler, the head of DFWA Department of in Europe in his interview to the “Market Leader”:
