Chairman of Euro Zone Finance Ministers Jeroen Dijsselbloem Delays 2.5B to Greece

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Chairman of Euro Zone Finance Ministers Jeroen Dijsselbloem Delays 2.5B to Greece
Chairman of Euro Zone Finance Ministers Jeroen Dijsselbloem Delays 2.5B to Greece

Chairman of Euro Zone Finance Ministers Jeroen Dijsselbloem Delays 2.5B to Greece

Now, chairman of Euro Zone Finance Ministers Jeroen Dijsselbloem has put another condition on Greece to get the next 2.5 billion euro or 2.15 billion pounds which is a part of the bailout money from the temporary euro zone bailout fund EFSF. The date of the money transfer is July 29; however, Mr. Dijsselbloem has put another condition in front of the Greece Parliament.

Mr. Dijsselbloem has said that Greece has satisfactorily implemented the prior actions which were required for the release of the next disbursement under the financial assistance program; however, the country has not taken one action which is still pending and till it is not done by the Greek Parliament before 25 July, the money cannot be transferred.

He also added that once Greece will comply with the last outstanding prior action, then only can an agreement can be finalized by 29 July. According to him once this process has been satisfactorily concluded, the EFSF will be able to release 2.5 billion Euros. Thus, he has cleared that there would not be any leniency and Greece has to comply with what it promised before.

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He announced that the euro area Member States have been taken into confidence by the Troika institutions i.e. IMF, EU and  ECB, that Greece has satisfactorily implemented the prior actions that include inter alia public administration reform, privatization, the areas of fiscal policy, tax reform, revenue administration, and financial sector restructuring.

Earlier, representatives of the European Union and International Monetary Fund, the bodies that are overseeing the Greek government’s compliance with the bailout terms had admitted that though there was some progress, the economy was still in shambles. Predictions are that Greece’s economy which has been down in the last five years may see growth from the next year.

A major issue for the ECB, EU and ECB regarding the Greek economy is its widespread public health care sector which drains out a lot of resources. A couple of weeks ago the Dutch Finance Minister Jeroen Dijsselbloem, also the head of the group of euro-zone finance ministers had accepted that Greece might get a partial disbursement of the total bailout money.

This decision from the chairman of the Euro Zone Finance Ministers to delay the amount will be a major blow to Greece as IMF itself a couple of weeks ago had accepted that stopping aid payments would deliver a tough blow to the Greek economy.