Here we go again: EU won't unlock further funding to Greece

RT
Mon, 09 Nov 2015 16:42 UTC

The Eurogroup will not unlock a €2 billion tranche of bailout funds to Greece at their meeting in Brussels on Monday, according to Eurogroup chief Jeroen Dijsselbloem.

"The two billion will only be paid out once the institutions give the green light and say that all agreed actions have been carried out and have been implemented. That still has not happened," said Dijsselbloem prior to the meeting.

During a conference call, held on Sunday, the finance ministers of the eurozone were notified Greece has implemented no less than two thirds of the 50 overhauls linked to the aid program, the WSJ reported. This includes the substitution of the tax on private education, management of state-rescued banks, as well as the treatment of overdue loans. However, Athens and the Troika of creditors - the IMF, the ECB and the European Commission - still need time to finish off the remaining changes.

Athens intended to implement the reforms by mid-October in exchange for the €2 billion, but failed to do so due to national elections in September and disagreement on some key questions.

The main disagreement remains over issues such as the treatment of bad bank loans, the rules for mortgage foreclosures and raising enough revenue to scrap a proposed tax on private education.

In August, Eurozone finance ministers agreed to a third bailout program for crisis-stricken Greece. The country will receive €86 billion in total over the next three years. The first tranche is €26 billion; €13 billion of which Greece received after the agreement was reached.

Comment: Here on SOTT we have been covering the Greek crises and warned we haven't seen the last of it. It is showing signs of rearing up again.

Reader Comments

treedirt · 2015-11-09T17:32:52Z

Nor should they. They shouldn't have last time either. If the EU really thinks Greece is ever going to pay them back they are only fooling themselves. Greece simply can't, not that they don't want to, although I firmly believe they don't, they can't. They don't produce enough money to cover entitlements as well as what they owe. Simple math. Greece needs to learn the hard lesson.

Idon'tcare · 2015-11-09T17:48:25Z

treedirt.

The money doesn't go to Greece, its goes to the banks of Germany, Britain, US and France. That the EU is holding out on the payment is simply part of the mafia like extortion racket implemented by the EU to A: Allow corporations to raid Greece of everything not nailed down or on fire while. B: Blackmail the new greek government into submission to its debtors and their government servants and finally C: Giving the Greek debt time to increase even more thus ensuring Greece will never become debt free again.

Think of it as a continent wide Bank bailout disguised as national loan.

Baybars · 2015-11-09T21:10:45Z

Call BRICS

If the BRICS are anything, they are a political organization designed to fight back against the world bank that controls the EU, U.S. and western economies.

Greece might lose some entitlements by inviting China and Russia in, but Greece would soon solve the long standing issue with Turkey when Russian and Chinese military show up. First thing, Greece needs to get rid of this lame, pro-banker government, by any means possible.