Germany eyes "bundled" loan payment to Greece: source

BERLIN Tue Nov 13, 2012 8:15am EST

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BERLIN (Reuters) - European countries deliberating on the payment of delayed loans to Greece could decide to bundle several tranches together in a single transfer of roughly 44 billion euros, a German government source said.

Under the terms of its second bailout programme, Greece was due to receive 31.2 billion euros by the end of June, plus an additional 5 billion by the end of September and 7.2 billion euros by the end of December.

The sources said these three payments could be combined to avoid stoking uncertainty with further deliberations on tranches in the coming weeks and months.

A German finance ministry spokeswoman said no final decision had yet been made on further loan payments to Greece under its second international bailout programme.

Earlier, the euro rose to a session high and German Bund futures fell on a report in the Bild newspaper that the tranches could be bundled.

Loans have been held up since Athens went off track with promised reforms and budget cuts, partly as a result of holding two elections in the space of three months earlier this year.

Earlier on Tuesday, Greece's international lenders clashed over how to help the stricken country bring its debts down to a sustainable level.

German Chancellor Angela Merkel, anxious to avoid losses for her taxpayers ahead of Germany's federal elections next September, is resisting IMF calls for euro zone governments to write off some of the Greek debt they hold.

However, French Finance Minister Pierre Moscovici said bailout money should flow to Athens by the end of November. (Reporting by Gernot Heller; Writing by Gareth Jones. Editing by Jeremy Gaunt.)

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Comments (1)
Eric93 wrote:
Really brilliant! That’s like giving the Greeks a bonus for failure. As usual they are passing ‘austerity measures’ that will never be implemented, just as they have for the past few years, and one’s which will never solve the problem. All of which gives the ‘Troika’ a ‘fell good’ moment and puts them in a mood to give Greece a big ‘attaboy’. A real bunch of ‘geniuses’ at kicking the can down the road till ‘reality’ strikes again. The ‘leaders’ fiddle while Athens burns and the Greek people suffer while the rich party. And the show goes on.

Nov 13, 2012 11:17am EST  --  Report as abuse
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