Greek Bailout Impasse Pressures Stocks

addU.S. equities are facing selling pressure at the open on Friday following some pessimistic news out of Europe about the IMF pulling out of bailout talks on Thursday with Greek officials who appear to be unwilling to embrace the conditions imposed by their international creditors to receive a much needed €7.2 bailout package that is sorely needed to help the cash strapped country to pay its bills and avoid a sovereign default.

Eurogroup President Jeroen Dijsselbloem was quoted in Finnish newspaper Helsingin Sanomat saying that the looming debt burden falls on Athens to help itself out of its financial problems.

“If the Greek government can’t accept the fact that there are no easy solutions and that the difficult solutions decisions will just be made, it is alone. We can’t help Greece if Greece doesn’t want to help itself” Dijsselbloem said.

Aside from the blunt words for Greek officials, Dijsselbloem admitted that there is still time to work out a new deal if the bailout proposals from Athens makes sense.

Although Greece has until June 30th before their current bailout extension runs out, Athens can’t wait until the final hour because a new bailout deal requires parliamentary approval across different European governments which could take days to complete.

If Greece remains unwilling to make the necessary reforms in time to receive their €7.2 billion bailout, another bailout extension could still be in the cards “to kick the can down the road” even further but Germany’s parliament would need to approve this type of deal in advance.

-Johnathan Schweitzer

 

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