Tags: Greece | Extension | Bailout | europe

Greece Celebrates Bailout Extension but EU Denies Deal Reached

Wednesday, 24 October 2012 09:39 AM EDT

Greece's Finance Minister said the country has been granted a long-sought extension to meet the terms of its bailout program — but the claim was swiftly shot down as "speculation" by the European Central Bank and lead lender Germany.

Finance Minister Yannis Stournaras said the deal was struck as part of weeks-long negotiations with its international creditors over a 13.5 billion euro  ($17.56 billion) package of new austerity measures for the next two years, required for continued emergency loan payments.

"What have we achieved today? We have achieved the extension," the minister told parliament. "If we had not been granted that extension, today we not only have needed to take measures worth 13.5 billion euros, but 18.5 billion euros ($24 billion)."

He added: "We have not gone bankrupt because we still have funds remaining from the previous installment."

One of the conditions of Greece's current 240 billion euro bailout program is that it reforms the economy so the country can eventually return to the bond markets to raise money.

Greece has asked for a two-year extension on its adjustment program, till the end of 2016, so that it ease the impact of further austerity measures and labor market reforms.

In Berlin, German Finance Minister Wolfgang Schaeuble bluntly dismissed Stournaras' statement as "speculation"

"I can't confirm this," he told reporters.

"As far as the Federal Finance Ministry and the German government are concerned, there are no new developments."

Schaeuble said creditors were still awaiting a report on Greece's progress by the so-called troika of debt inspectors, from the European Union, the ECB and International Monetary Fund, before any decisions would be made.

ECB President Mario Draghi also poured cold water on the Greek statements.

"The review is not finished yet," he said. "I understand progress has been made but that some parts need to be defined, and I don't know anything more than that. I cannot comment on these rumors."

© Copyright 2025 The Associated Press. All rights reserved. This material may not be published, broadcast, rewritten or redistributed.


FinanceNews
Greece's Finance Minister said the country has been granted a long-sought extension to meet the terms of its bailout program — but the claim was swiftly shot down as "speculation" by the European Central Bank and lead lender Germany.
Greece,Extension,Bailout,europe
318
2012-39-24
Wednesday, 24 October 2012 09:39 AM
Newsmax Media, Inc.

Sign up for Newsmax’s Daily Newsletter

Receive breaking news and original analysis - sent right to your inbox.

(Optional for Local News)
Privacy: We never share your email address.
Join the Newsmax Community
Read and Post Comments
Please review Community Guidelines before posting a comment.
 
Get Newsmax Text Alerts
TOP

Newsmax, Moneynews, Newsmax Health, and Independent. American. are registered trademarks of Newsmax Media, Inc. Newsmax TV, and Newsmax World are trademarks of Newsmax Media, Inc.

NEWSMAX.COM
MONEYNEWS.COM
© Newsmax Media, Inc.
All Rights Reserved
NEWSMAX.COM
MONEYNEWS.COM
© Newsmax Media, Inc.
All Rights Reserved