Samaras in Brussels, Merkel Says Loan Coming
Greek
Prime Minister Antonis Samaras was in Brussels on Nov. 22 for the start
of a two-day meeting of European Union leaders on the region’s budget
where he was expected to meet Eurozone chief Jean-Claude Juncker and
push for a long-delayed $38.8 billion loan installment to be released.
Eurozone finance ministers earlier in the week delayed until Nov. 26 a
decision on the loan because of a dispute with International Monetary
Fund Managing Director Christine Lagarde, who is opposed to giving
Greece a two-year extension to meet its fiscal targets.
EU leaders want to push back the deadline to 2022 for Greece to
reduce its debt-to-Gross Domestic Product (GDP) ratio from nearly 180
percent now to 120 percent, but that could require additional aid, which
Lagarde doesn’t want to give.
The IMF, along with the European Union and European Central Bank,
make up the EU-IMF-ECB Troika that loaned Greece $152 billion starting
in 2010 through a series of rescue monies, but has withheld the first
installment in a second bailout of $173 billion.
Samaras, frustrated that he narrowly convinced the Parliament that
his coalition government controls to pass a $17.45 billion spending cut
and tax hike plan as a condition of getting the money, called on the
Eurozone and IMF head to settle their differences. He warned that unless
Greece gets the funds that it could be pushed toward default and risk
the integrity of the financial bloc itself.
“Greece did what it had to do and what it had pledged to do,” Samaras
said. “Our partners, and the I.M.F., must now assume their
responsibilities.” He added that, “Whatever the technical difficulties
involved in finding a solution, they do not justify any negligence or
delay.”
The Troika officials will meet again in Brussels on Nov. 26 to
discuss Greece, and were expected to also talk about the country’s
economic problems on the sidelines of a two-day meeting in the EU’s
capital Nov. 22-23, where Samaras plans to talk to Juncker.
Meanwhile, German Chancellor Angela Merkel, whose country is the
biggest contributor to the Greek bailouts despite opposition from
Germans, said she believes the loan will be disbursed next week. She has
continued to insist, however, on more of the austerity measures that
have worsened Greece’s five-year recession. “We want Greece to remain in
the Euro,” she said.
Wolfgang Schaeuble, the German Finance Minister, said he was
confident that an agreement could be reached once “technical questions”
had been clarified. If ministers do reach a deal, Greece is likely to
get a larger amount of about 44 billion euros, ($56.6) because two
additional installments are due by the end of the year under terms of
the second bailout and Greece wants the monies bundled together.
The loans have been on hold since June, when Samaras’ New Democracy
Conservatives narrowly won a tense election, and creditors determined
that Greece was failing to meet the conditions of the bailout.
Eurozone finance ministers are considering a range of options,
including lowering interest rates on Greek debt, lengthening the
deadlines for repayments and allowing Greece to buy back its bonds at a
steep discount. Once lenders agree on a solution for Greece, the measure
will still have to be debated and passed by German lawmakers.