An senior eurozone executive stated yesterday, that Greece is not being automatically granted a third eurozone bailout. A bailout will only be contemplated if one is directly requested by Athens.
Currently, the Hellenic capital has not identified the need for a bailout. Now the eurozone's primary focus centers on disbursements of severely postponed designated tranches of loans and on its timeframe, regarding the first two batches of rescue aid.
Eurozone nations have generated 240 billion euros worth of Greek aid, since the state was eliminated from markets back in 2010 due to its economic disarray. Its second eurozone package concludes at 2014's end. Athens faces future financial hardships with its 10-year borrowing amount at approximately 6.8% and an inverted yield curve; it will be tough for Greece to viably sustain itself on the market.
The IMF has implemented a monetary program until 2016's first quarter. Greece will not receive any of its funds unless the nation's financial requirements are fully accounted for during the timeframe, from markets or the eurozone. An official explained, "The Fund (IMF) will require assurance by its European partners that if so required, financing would be available. And I have no reason to doubt that such assurances, if asked, would be given".
On Tuesday, eurozone finance ministers will meet again in Athens to determine the amount of loan disbursements and timing, that the country will receive under the current plan. The original timetable incurred a six month delay, due to questions concerning requirements placed on Greece.
The nation requires 9.3 billion euros to account for its bonds maturing in May. This topic will be discussed in Tuesday's meeting. The official noted, "The ministers will be discussing amounts and we have no firm data on that yet, but I expect it to be in the very low double-digit range or in the high single-digit range".
On Wednesday, Greece claimed it was almost ready to arrive to the bond market following its four-year deferral. Bonds sales will most probably occur in May after European Union elections. International investors have been more apt to the acquirement of bond purchasing via eurozone nations, which results in the decrement of yields in all the member states that require bailouts, including Greece.