SKIP TO MAIN CONTENT

Greece needs third rescue plan: report

Greece might need a third international rescue package worth 50 billion euros ($A62 billion) in 2015, the German weekly magazine Spiegel says.

eurozone_L_111201_aap_1668997639

2 min read

Published

Updated

Source: AFP


Skip to article content

Greece might need a third international rescue package worth 50 billion euros ($A62 billion) in 2015, the German weekly magazine Spiegel says.

The troika of creditors - the European Union, the European Central Bank, and the International Monetary Fund - is said to have expressed strong doubt in a preliminary report that Greece would be able to return to the international money markets to borrow in 2015.

By then Athens is likely to require 50 billion euros to repay international loans.

News that makes sense

Your trusted source for staying up-to-date with the world around you. Get free daily news updates and analysis, straight to your inbox.

By subscribing, you agree to SBS’s terms of service and privacy policy including receiving email updates from SBS.

Spiegel claimed Germany requested that this part of the report be edited out.

While a large majority of the German parliament last month voted in favour of a second aid package for Greece, there has been increasing criticism of the bailout plan in a country which has borne the brunt of its financing.

Spiegel also said the ECB was expecting implementation of a so-called collective action clause to force private creditors to agree to the restructuring of the Greek debt.

The clause can be invoked if at least 66 per cent of banks agree to it. This so-called super-majority then forces all creditors to go along with the deal.

Restructuring the Greek debt is due on March 12, and should allow the country to wipe off the slate 107 billion euros of the 200 billion euros it owes private banks.

This restructuring is one of the conditions for payment of a 130 billion euro rescue package agreed on Thursday in Brussels.


Get SBS News straight to your inbox

Sign up now for daily news from Australia and around the world. You can also subscribe to Insight's weekly newsletter for in-depth features and first-person stories.

By subscribing, you agree to SBS’s terms of service and privacy policy including receiving email updates from SBS.

Follow SBS News

Download our apps

Listen to our podcasts

Get the latest with our News podcasts on your favourite podcast apps.

Watch on SBS

SBS World News

Take a global view with Australia's most comprehensive world news service

Stream now

Watch the latest news videos from Australia and across the world