First Greek aid due to flow by May 19, Germany says

The first tranche of an international aid for Greece is due to be paid out before a deadline of May 19, according to a German government paper said.

First Greek aid due to flow by May 19, Germany says

The first tranche of an international emergency aid package for Greece is due to be paid out before a key refinancing deadline of May 19, according to a German government paper obtained by Reuters on Tuesday.

The paper prepared for members of parliament accompanying a draft entitled "Law to maintain the stability of the monetary union" includes mention of an informal timetable that foresees a vote by euro nations on the aid on May 10.

The paper also notes that talks with the IMF and the EU Commission in Athens over the aid aim to be concluded on May 2.

The eurozone finance ministers will discuss the results of those talks on May 4 in a telephone conference call.

It notes the Greek parliament could vote on a 3-year savings programme on May 6/7. The paper also says this timetable has been agreed with Italy, France, Spain, the EU Commission and the European Central Bank.

Chancellor Angela Merkel said on Monday Germany would be ready to take a decision on granting aid to Greece in a matter of days, once the IMF and European officials have completed talks with Athens.

She added Greece would have to commit to further deficit cutting measures before Germany could approve emergency aid.

Officials from the International Monetary Fund, European Central Bank and the European Union executive are negotiating a three year fiscal authority plan with Athens as a condition to release emergency loans to debt-stricken Greece.

In the draft of the emergency aid law obtained by Reuters, the Finance Ministry would be empowered to lend Greece a total of 8.4 billion euros. The draft does not make any mention of further loans in 2011 or 2012.

Worries about Greece's financial prospects pushed the cost of insuring the country's debt against default to a record high on Tuesday, stoking fears about Athens' chances of meeting a key refinancing deadline on May 19.

Polls show a big majority of Germans oppose providing Greece aid, a view reinforced by powerful sections of the media.

Reuters

Last Mod: 27 Nisan 2010, 19:11
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