Investors remain on edge on Wednesday but are holding out hope that the newly elected leftist government in Greece will request an extension of a €240 billion bailout program to keep Greece solvent beyond February 28th after a tense showdown in Brussels on Monday between Eurogroup finance ministers and Athens over the need to keep Greece on its austerity path.
After talks between Greece’s finance minister and the Eurogroup collapsed on Monday with Athens making no new request from its creditors to extend their bailout beyond its February 28th deadline, hopes faded away that Greece was willing to submit to their creditors’ demands and would receive an extension of their bailout program.
But on Tuesday a media report from Reuters said that Athens would make the request for a bailout extension on Wednesday, the same day the European Central Bank convenes to decide if liquidity funds should be extended to Greek banks through its emergency liquidity assistance program which comes after last week the ECB raised emergency funding by €5 billion.
A new report today from the Wall St. Journal this morning indicates that Greece will wait until Thursday to submit a new loan request, according to Greek government spokesman Gabriel Sakellarides.
The Wall St. Journal reports that Eurogroup finance ministers have agreed to meet on Friday only if a “credibly worded request” for a bailout extension is offered.