Top-ranking European officials meeting in Luxembourg suggested on Monday that no decision regarding Greece’s bailout program would be made before the end of the year, while also dashing Greek hopes of rolling over bonds due to mature next spring in order to cover a funding gap next year.
On arriving at a summit of eurozone finance ministers in Luxembourg, ECB executive board member Joerg Asmussen ruled out the possibility of rolling over bonds due to mature next spring to cover a funding gap which Greece estimates at around 4.4 billion euros. Asmussen put the funding gap closer to 6 billion euros and said that other methods must be found to plug it.
“We must find a way to close the financing gap and there is absolutely no way it can be done in a way of roll-over bond or whatsoever which results in monetary financing; this is not possible for the ECB and not for the whole euro system,” he said.
Asmussen said officials meeting in Luxembourg were to have “a first exchange of views” on how to close the financing gap of the existing program.
European Monetary and Economic Affairs Commissioner Olli Rehn struck a similar tone. “We will reflect in the coming weeks to see and decide how to proceed with Greece concerning its financing needs and potential fiscal gap,” he said.
Source: ekathimerini
