GREECE IS REPORTEDLY close to securing the next €12 billion tranche of bailout money, after German ministers rushed to reassure the market that the country’s EU/IMF bailout deal would continue as planned.
The country is due to receive the next tranche of bailout loans on 29 June, however the €110 billion deal is dependent on certain conditions being fulfilled – namely assets sales and spending cuts, reports the Telegraph. Some recent reports suggested that the IMF may not approve the next installment of funds.
Martin Kotthous, of the German finance ministry, told reporters that the bailout programme for Greece “was designed jointly. It will be evaluated jointly, and I also assume that it can only be continued jointly, including when it comes to the question of payouts of future tranches.”
Finance officials met last night to discuss the aid package and attempt to iron-out tensions between Germany and the European Central Bank over the question of whether private investors should be forced to contribute to the bailout, reports the Wall Street Journal.
Today representatives of the EU, IMF and European Central Bank are in Athens to inspect the country’s assets.
Meanwhile, Greece was dealt another blow on Wednesday, when credit rating agency Moody’s downgraded Greece’s bond ratings deeper into junk status. Moody’s downgraded Greece by three notches from a B1 rating to Caa1 with a negative outlook, citing increased risk that the financially stricken country will be unable to handle its debt problems without an eventual restructuring — paying creditors less than the full amount, or later than originally planned.
Additional reporting by the AP
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