Rescue Package May Be Extended Until Autumn

According to a barrage of reports in the German media during the last few days, there is a high likelihood of Greece’s current bailout program being extended until autumn.

At the same time, Greece’s Prime Minister Alexis Tsipras expressed his confidence that the Greek government is close to an agreement with its international creditors despite the fact that he rejected the European proposal delivered by European Commission President Jean-Claude Juncker on behalf of the Institutions.

Speaking in his parliament about the current bailout talks on Friday afternoon, Alexis Tsipras stated that he will not sign a new Memorandum for Greece implying that the possibility of the Greek program’s extension remains open.

Closing his Parliamentary speech, the Greek PM stressed that there is no time limit for the negotiations between the Greek government and the European creditors, because of the fact that they should only aim at a definite agreement regarding the Greece’s debt settlement.

Given the fact that the Greek side is unable to satisfy the Institutions’ demands regarding the imposition of additional restrictive measures, there is a great necessity for Europe to appeal more medium than long term character decisions.

Meanwhile, a government source close to Alexis Tsipras explained last night in the Greek Parliament that “any agreement reached should be capable of solving any issues arise.”

There are several reports in Berlin referring to the extension of the current Greek assistance program. “Technically this step can not be avoided. Greece should survive this summer,” circles adjacent to negotiations told “Wel.t”

“Frankfurter Allgemeine” reported that Greece’s lenders wish the extension of the Greek bailout program in order to make available to Athens the vital amount of about 10.9 billion euros for the recapitalization of the Greek banks. In return, they will ask, among other things, the reduction of all pensions by 1% of GDP and a continuation of the privatization program.

Journalists from “Handelsblatt” say that ECB, EU and IMF circles estimate that no agreement will be reached regarding a third rescue program in June.

Meanwhile, the leaders of the seven world’s biggest economies will meet in Bavaria in order to discuss the global economic outlook.

Greece will be present during the G-7 summit, hosted by German Chancellor Angela Merkel, as the negotiations with the Institutions are now in a very critical phase and developments do not leave anyone indifferent.