Reuters: Possible five-month extension to include €16.3bn in funding
The Eurozone partners are considering the possibility of extending the current Greek bailout program for five months, which…
The Eurozone partners are considering the possibility of extending the current Greek bailout program for five months, which would also include 16.3 billion euros in funding, according to a Reuters report.
The 16.3 billion euros would derive from the 10.9 billion euros now earmarked for Greek bank recapitalization, the 1.8 billion remaining tranche from the Eurozone bailout fund and a further 3.6 billion euros from profits made by the ECB in 2014 and 2015 on purchased Greek bonds.
According to the financing note cited by Reuters, “a five months extension (until end of November 2015) of the current programme is feasible during which a total of 12 billion euros of financial support would be provided by the EFSF and the transfer of SMP/ANFA related profits, complemented by an assumed disbursement of the IMF of 3.5 billion euros”. Should the extension be approved, then funding would be paid out in four installments, according to the progress of implementing reforms.
The financial note also mentions that the International Monetary Fund may also participate with 3.5 billion euros in funding, which would be paid out in October, provided that certain reforms are implemented, that the Eurozone assures financing for 12 months and that the Greek debt is sustainable.