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EWG OKs €2.5bn to Greece, EU official sees €3.8bn program shortfall

A good news and a bad news: the Euro Working Group approved the 2.5 billion euro bailout tranche to Greece. The announcement was made via …Twitter!

The Euro Working Group of finance officials has approved the disbursement of a E2.5 billion aid tranche for Greece, European Commission spokesman Simon O΄Connor said Friday.

In a message on Twitter, O΄Connor also said that “E1.5 billion of SMP income” would be disbursed “subject to completion of national procedures on Monday.”

Right after O’ Connor’s tweet, Greeks started to pack their beach bags with bathing suits, snorkels, sun-blockers, sun glasses, turkey sandwiches and cold drinks for a relaxed summer weekend. But then the bad news came in:

Greece΄s international bailout faces a shortfall of around 3.8 billion euros ($5.02 billion) between now and the end of 2014, a European Union official said Friday.

According to Wall Street Journal, that gap in the country΄s financing is due to a refusal of national euro-zone central banks to buy new Greek bonds when the ones they hold mature.

When the euro zone and the International Monetary Fund sealed Greece΄s latest aid program last year, such a roll over was part of the calculations. But since then, several central banks have refused to follow through, amid continuing doubts over Greece΄s financial future.

The official said the EUR3.8 billion shortfall will have to be closed this fall in order to continue with the bailout program. “It΄s not enormous,” he said of the shortfall. “Measures will be found.”

source for both news here

You know what, dear European Union official? You can’t spoil our sun blessed weekend at the beach. Shortfall here, additional austerity measures there, we gave all we could give.

PS my watch says: it’s swimswim time 🙂


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