Euro Zone Sets 6 Day Reform Deadline For Athens Before Disbursing More Bailout Funds

Opposition leader and head of radical leftist Syriza party,  Tsipras addresses supporters during a campaign in central AthensYesterday Greece made another request for cash to its creditors and euro area finance ministers before paying the IMF €453 million that is due today as the cash strapped country attempts to scrape up enough money to make interest payments and pay off salaries and pensions that are due at the end of the month.

Athens was told to submit an improved set of economic reforms within 6 working days that it would agree to accept before finance ministers in Brussels open the door for more lending.

Athens is scrambling to make debt payments that are due in the near future.

On April 14th, Athens has to roll over €1.4 billion in short term Treasury bills that are maturing, refinance another €1 billion Treasury bill by April 17th, and make an interest payment of €197 million on a 5 year bond.

Last week Athens submitted a long list of economic reforms that are a condition of the country receiving their next bailout funds.

However, euro area finance ministers said that the proposed reform list was inadequate and lacked specific details.

Euro area finance ministers want the proposed reforms to be passed through Greece’s parliament rather than simply making promises before Greece qualifies for more funding.

Athens is being asked to implement an improved list of economic reforms before it can qualify to receive the final €7.2 billion that remains in its €240 billion bailout program.

The ECB is holding a teleconference today to determine whether to expand emergency assistance to Greece’s banks which have experienced large deposit outflows in 2015.

-Johnathan Schweitzer

 

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