Greece May Run Out Of Options Despite Program Extension

eu-greeceGreece may have secured a four-month rescue program extension, however, the country’s chances of making it on its own without needing any help are increasingly lower, as pointed out by Reuters.

According to the news agency, this will result in “raising pressure on Athens to quickly implement reforms it has vocally opposed or default on debt repayments in a matter of weeks.”

While Greece remains out of the markets and faces plummeting tax revenue “Athens is expected to run out of cash by the middle or end of March.” In fact, the Reuters article stresses that Greek Finance Minister Yanis Varoufakis warned that the country is going to struggle to repay its creditors.

Athens is now searching for “quick fixes” to make it through the next few weeks but it is not easy to fill the financial gap. Eurozone officials hope that the liquidity crisis affecting the country will force Prime Minister Alexis Tsipras to agree with the ceditors’ reform plans in late April.

“The liquidity squeeze is being used to push the Greeks to very quickly start discussions on the review and finish that as soon as possible – not even waiting for the end of April,” one Eurozone official said to Reuters.


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