Greece at Standstill Due To Anti-Austerity Protests

(Athens, Greece) – Greece faces another stormy summer as the country’s embattled leaders prepare to fight for more leniency from their creditors.

An emergency Eurogroup session will see the issue of Greece’s perilous finances return to center stage on Monday when creditors and Athens leaders meet to discuss the €86bn (£68bn) bailout approved last summer.

The government faces running out of the cash it needs to meet coming repayment deadlines, unless further tranches of the assistance package are released, the third of its kind granted to Greece since its debt crisis began.

The country faces its next hard deadline in July. It is then due to repay €300m to the International Monetary Fund (IMF) and €2.3bn to the European Central Bank (ECB).

However, with the Brexit referendum in the UK looming, analysts said that EU officials will be keen to keep talk of another Greek crisis quiet.

The Eurogroup meeting, in Brussels, will focus on contingency measures requested by the IMF in case Greece can not stick to its budget plans. These back-up cost-cutting measures would be implemented if the government missed its 2018 targets, to deliver savings of 2pc of GDP.

In a letter made public last week, Christine Lagarde, the IMF’s managing director, revealed that talks on the contingency measures were breaking down. She stressed that further support from the IMF would require financing for Greece to be based on “realistic” austerity targets.

The IMF – one of Greece’s three creditors alongside the EU and the ECB – has made clear that it would need some form of Greek debt relief to be agreed before it could come back to the table.


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