German finance minister skeptical about Greece’s financial issue

German finance minister skeptical about Greece’s financial issue

HomeEuropeGermany Tue May 5, 2015 12:48PM

Germany’s finance minister has expressed doubt about Greece’s ability to garner support of the international creditors to receive a fresh loan.

Wolfgang Schaeuble said on Tuesday, “I’m somewhat skeptical whether that’ll be possible by Monday (May 11). But I’m not ruling it out.”

The German official’s comments come ahead of a meeting of eurozone finance ministers which will discuss granting the new loan to debt-ridden Greece.

Previously, the leftist government in Greece had announced its decision to make concessions in order to convince the international lenders to unblock a USD-7.9-billion bailout that the Mediterranean country needs to avoid defaulting on its foreign debt.

Athens has been under pressure by the lenders to make reforms in its labor market as well as in the government’s pensions and taxation policies.

Following the 2009 economic crisis in the country, Greece received two bailouts from the so-called troika of international lenders, namely the European Commission, the European Central Bank and the International Monetary Fund, one in 2010 and the other in 2012, amounting up to a total of €240 billion (USD 272 billion).

Since then, however, Athens’ political turmoil and financial woes have not come to an end.

To add insult to injury, Greece has not been able to ease tensions by borrowing more money from the international lenders over the past few years due to what is said to be unfavorable terms.

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