Greece’s government has asked financial assistance from the World Bank. The amount of the loan has not been revealed, neither when exactly the talks took place. However it sounds most possible that the government’s decision came amid negotiations with creditors on the second review of the third bailout program.
Greece’s heavily indebted government has decided to ask for more loans, this time from the World Bank, another Washington-based organization which specializes in providing funds to impoverished countries and emerging economies.
“The government of Greece has asked the World Bank to provide technical and financial assistance to address pressing challenges including: long-term unemployment, economic competitiveness and growth and social protection,” a spokesperson from the World Bank told Politico.eu exclusively. “In accordance with World Bank procedures, any final decision on providing loans would be subject to approval by the bank’s board of executive directors.”
The World Bank declined to specify how much money Greece requested.
Greece’s current creditors “are not too happy about” the fresh request for funds, an EU official said Thursday.
Later, a Greek government official confirmed the talks between the government and the World Bank.
“Preliminary talks have taken place indeed with [the World Bank] but we cannot confirm official application,” a government official in Athens said.
Politico notes that “Greece’s €86 billion bailout package could soon become even more complicated,” after the country’s government decided to seek financial assistance from the World Bank.
“If accepted, the Greek request would push the country further into debt” at a time when the government continues to battle over the terms and conditions of its latest bailout package.”.
Negotiations resumed on Tuesday in Athens between the government and its eurozone creditors, the European Commission, International Monetary Fund, and European Stability Mechanism.
The talks aim to reach a staff level agreement that will lead to conclusion of the second review. Talks take place behind closed doors with few information leakage to the press. Although the first two days, the signs looked grim, it looks as if the two sides move towards an agreement slowly but gradually.
The current bailout program ends in summer 2018. However, a what it seemed a grave disagreement between the European lenders and the IMF over the debt sustainability has led to additional measures for the years 2019-2020.
An agreement would mean, of course, new austerity measures and new income cuts for Greeks who have been struggling to take a breath for seven consecutive years.
After so many years of bailouts and ‘talks’ it is more than clear that Greece has been the example of how the Eurozone and the European Union can destroy a country.
A Grexit would have made senses in 2010 – the momentum has been eternally lost.
