According to the confidential report of Bundesbank, cited by the German magazine Spiegel, Greece will need another rescue package in 2014.
In an internal document of the German Central Bank it said that that the European leaders must start immediately all these processes after the German elections in September, in order for the new loan for Greece to be ready to be disbursed early next year.
No amount was specified. Greece is surviving on two bailouts of 240 billion euros ($320 billion) from the Troika of the European Union-International Monetary Fund-European Central Bank (EU-IMF-ECB) and Germany is the biggest contributor.
According to the assessment of experts from Frankfurt, the aid program for Greece is considered “exceptionally high” and Greek government’s performance as “barely satisfactory”, the magazine said although Chancellor Angela Merkel has repeatedly praised Greek Prime Minister Antonis Samaras for imposing the austerity measures she has insisted upon but which have worsened Greece’s recession, now in a sixth year, and put nearly 1.4 million people out of work.
The paper, which has been drawn up for the German Finance Ministry and the International Monetary Fund, said considerations being made for Greece were political, but bank officials denied it was a reference to the September elections in Germany.
“Despite the fact that Bundesbank did not want to comment on the paper, this constitutes a clear indication of the interest the German side, which wants to avoid any discussion about a possible haircut of the Greek debt before the German federal elections,” the magazine said.
It also referred to European Commission’s estimations that Greece will manage to have a small growth rate in 2014, after six years of recession and with an unemployment percentage over 27%.
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