by Luke Baker and John O'Donnell
Reuters
September 23, 2011
Each time, the story is the same: Greece makes budget commitments, its creditors warn it is in danger of missing them, Athens promises a renewed effort, and just in time, everyone agrees the targets were met.
Over the 17 months since Greece was granted 110 billion euros of emergency loans by the IMF and European Union, five loan tranches have been paid out despite Athens' patchy success in delivering on its goals.
The 6th tranche is due in mid-October and again looks likely to be paid, if only because the impact on the euro zone and global economy is too dangerously unquantifiable if not. Greece is falling far short on objectives but will again get its money.
The question is how long the charade of the European Commission, European Central Bank and IMF turning a half-blind eye to Athens' backsliding can go on before the troika's inspectors decide enough is enough -- that compromising on their integrity to allow Greece to stumble on just won't do.
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