EU creditors consider extending Greek bailout program to next March

Greek PM Alexis Tsipras and EC President Jean-Claude Junker

The EU and Athens have held discussions about the possibility of extending the Greek bailout program through till March next year, according to a report in today’s Wall Street JournalThe newspaper is claiming that the proposal was first put forward last week and  is part of European officials’ efforts to persuade the government in Athens to agree to painful concessions in exchange for rescue funds. However, Greece’s reluctance to impose the austerity measures being demanded by its creditors could still undermine the plan..
The eurozone’s portion of the Greek €245bn  rescue program runs out at the end of June, raising questions over how Athens will pay off its debt beyond this month and remain in Europe’s currency union. With a debt load close to 180% of its gross domestic product and an economy back in recession, Greece is unable to raise money from international bond markets and has been depending on rescue loans from the eurozone and IMF for more than five years.

Source: wsj