German economist and ECB board member Jörg Asmussen is arriving in Athens today for talks with the political leadership and high-ranking bank executives. The official visit comes a day after the German Minister of Finances Schäuble commented on the need for a third aid package in 2014.
Mr. Asmussen is scheduled to meet the Minister of Finances Stournaras, the head of Bank of Greece Provopoulos and the head of the National Bank Zanias at 15:00. Later on at 16:30 he is to meet with Prime Minister Antonis Samaras. On Thursday Mr. Asmussen will meet with the government Vice President and Minister of Foreign Affairs Evangelos Venizelos.
According to information available to To Vima, a “precautionary” aid package has been discussed behind the scenes over the past few months. The purpose of such a package is to cover the financial gap for the 2014-2016 period. The IMF has estimated that a further 10.9 billion euros will be required in 2015 and 2016 alone.
This new aid package could include funds “left over” from the 50-billion euro package that was used to recapitalize the banks, about 10 billion euros. The European Commission troika representative Matthias Mors is said to have proposed so during the last evaluation in Athens.
The aid package could be bolstered with a new, small loan from the ESM in the range of 5 to 7 billion euros. Furthermore, a reduction of interest on the current loans towards Greece could be implemented.
This precautionary package is meant to act as a safety net, should the Greek government be unable to generate the necessary funds from the markets in 2014. Furthermore, its existence will increase trust and ensure that the country’s funding is secure so that the country can reenter the markets next year.
