Euro Zone Might Delay Greece’s Second Bailout

There are proposals to delay Greece’s second bailout either in parts or total. This has arisen from the lack of commitment shown by Greece. If delayed, it could last until after Greece’s elections. The elections are planned for in April. Even then, the Greek leaders need to promise spending cuts and labor reforms to receive the bailout.

Though most elements for the bailout are in place, not all political party leaders from Greece seem to comply with the reforms. Some euro zone finance ministers would like legal guarantees. Talks around euro zone say there is pressure from several countries to hold off the bailout until after their elections when there is a chance of getting a solid commitment from Greece.

Meanwhile, a dept swap between Greece and private sector holders of Greek bonds can happen. If carried out, it would mean 14.5 billion redemption on euro bond payment for Greece. If not, it would result in default.

 

Switch to our mobile site