Final Greek Bailout Talks Begin in Athens

July 29, 2015

        Greece and its creditors are scheduled to begin final negotiation talks on Tuesday, July 28th. During that time, the International Monetary Fund (IMF), the European Central Bank (ECB), and the European Union (EU) will meet in Athens to discuss the €86 billion ($95 billion) bailout deal. While the program has to be completed and approved by all parties involved, skepticism over whether the bailout plan can return Greece’s economy to health still remains. 
        After defaulting on a $1.7 billion loan to the IMF on July 13th, Greek parliament surrendered economic control over to their European creditors. Creditors called for a series of pre-conditions that would further tighten the country’s budget, in an attempt to resolve the country’s debt crisis and allow them to keep the euro. This forced Greece to pass a series of short-term measures, such as raising taxes and pushing back the retirement age.
Despite Greece’s cooperation, discrepancies over different financial contributions to the deal may create tensions amongst creditors. European creditors have confirmed that they will not move forward with this plan of action without the approval and cooperation of the IMF. However, IMF has threatened to withdraw support from the bailout unless European leaders agree to considerable debt relief.  
        The possibility reorganizing the Greek debt also remains a factor in the bailout deal. “In truth, the question is not whether Greek debt should be restructured, but how to do it so it really benefits the country’s economy,” said Benoit Coeure, an ECB executive board member. Officials are predicting that the negotiations will be concluded by mid-August, before Greece’s next payment deadline.

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