Greece formally requested a 6 month extension of its bailout program from its international creditors on Thursday but Europe’s largest contributor to the bailout funds, Germany, denied the request ahead of a Eurogroup meeting later today when Eurogroup officials will meet to discuss the new extension proposal from Athens.
German finance ministry spokesman Martin Jaeger said in a statement that the proposal from Athens falls short of meeting the eurogroup’s demands that contains fiscal reforms including austerity measures.
“The letter from Athens is not a proposal that leads to a substantial solution. In truth it goes in the direction of a bridging financing, without fulfilling the demands of the programme. The letter does not meet the criteria agreed by the eurogroup on Monday.”
Greece’s current bailout from its international creditors consisting of the ECB, IMF, and EU lasts until February 28th. Greece is at risk of running out of money in March unless their international bailout is extended and approved.
On Monday eurogroup officials met in Brussels and emphasized to Greece finance minister that Greece needs to request an extension of their international bailout that meets the eurogroup demands that includes austerity measures.
The euro is trading lower on today’s news about the bailout extension.