Greece Disagrees With Lenders About Extra Changes

Greek Flag(Greece) – Multiple sources close to the Greek government have said that Greece has told its lenders in Europe and the International Monetary Fund that it will have trouble implementing some of the extra demands recently imposed on the country in exchange for new bailout money. These extra changes were requested shortly after the Eurogroup and International Monetary Fund agreed to approve the most recent round of bailout funds last week. International lenders had said that they required that Greece agree with the austerity measures before they discuss whether to give Greece further aid. Greek parliament voted on several occasions to pass a series of austerity measures. Now, after the bailout was approved, they have additional demands.

In the talks, which took place on Monday, Greece told the lenders that it could have trouble meeting these new demands. This disagreement could potentially delay the release of the funds, the first payment of which was supposed to have been given to Greece in June. Greece needs this money to pay off their International Monetary Fund loans which are due in June, as well as bonds from the European Central Bank, which will be maturing in July. Although the bailout review concluded favorably last week, the talks on Monday could cause the process to stall.

Greece’s Finance Minister, Euclid Tsakalotos said in a letter last week that Greece could have trouble meeting some of the new demands. At this time, it is unclear whether or not this letter will cause a delay in the release of funds. Some of the changes were related to pension reforms and some of the bad loans that the economy is burdened by. The Greek official said, “We cannot make any substantial changes. But we will proceed with the technical amendments discussed. Some of them are in the right direction.” So far, Greece has approved most of the austerity measures required of them, such as tax increases and pension reforms.


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