A senior Eurozone official from Brussels has stated that it is currently impossible to make any prediction on the future of Greece or the results of the country’s bailout program, scheduled to end in December of this year.
The official has countered the Greek government’s statements that Greece will not need further assistance programs, claiming that this in fact depends on a wealth of factors. Some of these are related to the execution of the 2014 budget, the draft budget of 2015, liquidity of Greek banks and the climate that will prevail in financial markets.
“The next day depends on what happens in October and November,” said the Eurozone official, noting that the results of the banks’ October “stress tests” will prove crucial. He added that the Greek Financial Stability Fund holds state bonds in order to use them to recapitalize Greek banks. They cannot, however, be readily converted into cash.
When asked whether Brussels was satisfied with the 2015 draft budget submitted by the government, the official stressed that the basic points of the budget will be scrutinized by the troika team. If the plan shows a high degree of realism and reflects the political priorities established by the Memorandum, Brussels will be satisfied.
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