Greece debt talks

Greece’s current programme of loans ends at the end of February and a final bailout tranche still has to be negotiated. After recent meetings a final decision has not been made and we are coming closer to the end of the timeline.

Greece’s left-wing Syriza party won the recent election with a pledge to have half of the debt written off. Its new finance minister Yanis Varoufakis has refused to work with he “troika” of global institutions overseeing Greek debt. The troika – the European Commission, European Central Bank and International Monetary Fund – had agreed a €240bn (£179bn; $270bn) bailout with the previous Greek government.

Finance Minister Yanis Varoufakis has previously outlined that he would prefer to talk to individual organisations and EU member states. He has already begun to roll back the austerity measures the creditors had demanded as part of the deal. The Finance Minister has already begun to stop the austerity measures the creditors had demanded as part of the deal. There is a need to give into a number of demands, but this may mean moving away from the anti austerity election promises to which it has outlined it will not do. Interestingly, there has been small sharp shocks and reactions to what has been said in the worldwide stock markets. However, data has been thin and the markets in general have risen over the period and have not as yet been effected.

The outcome of a Greek debt deal is of utmost importance to worldwide trade as there may be major disruption and there is a high currency risk on any trades. Traders are especially fearful due to major recent currency moves seen in Switzerland and Russia.

German Chancellor Angela Merkel has outlined that that it is her intention for Greece to stay in the Eurozone but she has ruled out cancelling any of Greece’s debt, saying banks and creditors have already made substantial cuts. German Finance Minister Wolfgang Schaeuble has warned Greece about its negotiation tactics on writing off debt.

Summary
Article Name
Greece given a loan extension by ECB
Description
Greece's Syriza party won the recent election and have been given €3.3bn as a emergency liquidity assistance (ELA), but there is expected to be an extension to loans as requested by the end of February.
Author