Troika back in Greece for talks on latest funds
GREECE’S three international lenders were in Athens once again today, as disagreement over the country’s next tranche of financial aid bubbles under the surface.
A long-delayed report into the country’s financial system from the Bank of Greece is a major part of the disagreement, with disputes over how much more new capital the banks need to become stable.
The Greek government and central bank are thought to likely underestimate the scale of the capital needed.
The International Monetary Fund, European Commission and European Central Bank that make up the Troika aim to have the latest round of negotiations resolved by mid-March.
According to Barclays analysts, the next disbursement of aid is “crucial”, since the Greek government needs to be able to fund the redemption of debt worth around €4.2bn (£3.47bn) which is due in late May.
Discussions over the next installment of funding have been in flux since September last year, when the government asked for more time to make major public sector workforce reductions.