June 4, 2011
A top euro-zone official said Friday that cash-strapped Greece is in line for a fresh program of aid from its peers in the currency union, and European Union and International Monetary Fund authorities said Athens would likely get in July the next tranche of money from last year's €110 billion ($158 billion) bailout.
The announcements suggest positions have softened in the complicated standoff between European countries and institutions over how to handle Greece. The IMF had indicated it wouldn't be prepared to sign off on the next dollop of money without assurances that Greece has enough financing to carry it for another year. That worry appears to have been alleviated.
Speaking in Luxembourg after a meeting with Greek Prime Minister George Papandreou, Luxembourg Prime Minister Jean-Claude Juncker said he expects euro-zone countries "to agree to additional financing to be provided to Greece." But Mr. Juncker, who is president of the Eurogroup council of euro-zone finance ministers, said there must be "involvement" by Greece's private-sector creditors. In the jargon, that means those creditors would have to help bear the burden of continuing to finance Greece.
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