Greece’s Creditors Prepare Final Bailout Proposal As Greek Debt Deadline Nears

ASEuropean leaders and the heads of Greece’ creditors met together in Berlin late on Monday night to iron out the details and work out the terms of a final debt bailout proposal for Athens which owes € 1.6 billion to the IMF in June and €300 million due by Friday June 5th.

Attending the late night meeting in Berlin was German Chancellor Angela Merkel, French President Francois Hollande, IMF Acting Director Christine Lagarde, ECB Mario Draghi, and European Commission President Jean-Claude Junker.

Government leaders in Athens are scrambling to find a viable solution that meets the demands of their creditors to unlock €7.2 billion in the final part of its current bailout package while also fulfilling the demands of the Greece majority party Syriza to oppose labor and pension reforms that remain  unpopular in Greece.

Athens is on borrowed time as its temporary bailout extension runs out at the end of June.

During the past 2 weeks, some cracks have appeared on the surface of Syriza Party which has been under pressure from leftists in the party to resist the demands of their creditors and force their creditors to offer concessions to the cash strapped country, although the majority of Greeks want to avoid a sovereign default and remain in the euro area.

Only eight days ago,  Greek Interior Minister Nikos Voutsis said on TV program Mega Week-end that the installment to the IMF will not be paid.

“This money will not be given and does not exist to be given” Voutsis said.

Athens owes €5.2 billion in maturing short-term Treasury bills due in June (€3.6 billion on June 12th and €1.6 billion on June 19th) and another €2 billion due on July 10th.

-Johnathan Schweitzer

 

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