Greece does not require a third bailout and can cover its needs by improving the terms of its debt and possibly returning to the bond market next year, Evangelos Venizelos, the country’s deputy prime minister, foreign minister and leader of the junior government partner PASOK, said this week,
His statements came a few days after elections in Germany, whose support to Greece came only as a result of the Greek government adopting austerity measures that have created political and social turmoil.
Since the sovereign debt crisis of 2009, Greece has been shut out of international capital markets, resorting only to short-term borrowings, and has relied on two bailouts and a major write down of Greek debt.
Despite the austerity measures it is expected that the country needs an additional 10 billion to 12 billion euros in the next two years. The eurozone is likely to decide on a third bailout for Greece in November after international inspectors finish an assessment of its reforms.
Source: Reuters