Greek troika report delayed by US elections

An EU-IMF report into whether Greece's debt is manageable looks set to be delayed until after November 6 because policymakers want to avoid any shock to the global economy before the US election, EU officials and diplomats said.

Differences inside the troika about the precise extent of Greece's debt problems, combined with political pressure to hold off for another few weeks, look likely to mean a delay until mid-November Photo: AP

5:00PM BST 21 Sep 2012

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The report by the "troika" of Greece's foreign lenders - the European Commission, European Central Bank and International Monetary Fund - was expected during October, possibly before a meeting of eurozone finance ministers on October 8.

The study provides the basis for decisions on whether to disburse the next tranche of aid to Athens, which may otherwise run out of money to pay wages and pensions, default on its debt and perhaps be forced to leave the euro area.

The news came as the "troika" said it was taking a "brief pause" from discussions in Greece, and expects to return to the country next week.

Differences inside the troika about the precise extent of Greece's debt problems, combined with political pressure to hold off for another few weeks, look likely to mean a delay until mid-November. In the meantime, Greece will be kept afloat by issuing short-term treasury bills and its banks will get access to emergency funds from the Greek central bank.

"The Obama administration doesn't want anything on a macroeconomic scale that is going to rock the global economy before November 6," a senior EU official told Reuters, adding that previous troika reports had also slipped.