Thursday, February 19, 2015

Germany Rejects Greek Bailout Extension

The Greek drama continues.

Germany has rejected a request by Athens to extend its €172bn bailout.

Martin Jäger, a spokesman for Germany’s finance ministry, said the letter requesting the extension, sent by Greek finance minister Yanis Varoufakis on Thursday, left too many questions unanswered and did not meet demands by eurozone finance ministers to unconditionally agree the terms of the existing rescue.

“The letter from Athens is not a substantive proposal for a solution,” Mr Jäger said. “In truth, it aims at bridge financing without fulfilling the demands of the programme. The text does not meet the conditions agreed on Monday in the eurogroup.”

As I have noted in the EPJ Daily Alert, this is all just posturing. The real deadline is a still a few days away, when Greece might run out of money, or the end of the month, when the current bailout deal expires.

Nobody gets serious until next week.


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