BRUSSELS: Greece's international creditors will have to find 32.6 billion euros if they agree to extend its debt bailout by two years to 2016, as it wants, according to a draft report.
Athens needs 15 billion euros to cover 2013-2014 and will need another 17.6 billion euros for 2015-2016, according to the report seen Monday by AFP as eurozone finance ministers began a meeting to discuss the Greek bailout.
Under its current bailout, the creditors -- the European Union, International Monetary Fund and European Central Bank -- had expected that Greece would need some 8.0 billion euros in additional funding.
Finance ministers are relying on the long-delayed report, drawn up by officials from the EU-IMF-ECB troika, to assess Athens' efforts to meet its targets and decide whether to release a next aid tranche of some 31 billion euros.
The report said "a financing gap over the programme has emerged due to lower privatisation proceeds, slower growth and concomitant lower revenues, and a longer horizon for correcting the excessive (public) deficit."
It said that even though Greece might find itself in a better position to raise funding on the markets in due course, "it is prudent to assume that markets may remain sceptical about Greece for a longer period, given the vulnerability resulting from the high debt ratio and political risks."
Greek Prime Minister Antonis Samaras has said the country will go broke by Friday if it does not get the latest instalment of rescue funds, with many in the eurozone reluctant to make yet more commitments to a Greece which has now been bailed out twice.
Last week Greece adopted another package of stinging austerity measures worth 13.5 billion euros, as demanded by the EU-IMF-ECB troika, and then on Sunday passed a tough 2013 budget in the hope it would get its next aid payment.
"We need to find creative solutions," Austrian Finance Minister Maria Fekter said as she went into the meeting while IMF head Christine Lagarde called for a "real fix, not a quick fix."
Officials have said Monday's meeting will likely look at a combination of a longer timeline and easier repayment terms or even some further reduction in debt so as to help Greece.
indiatimes.com
Athens needs 15 billion euros to cover 2013-2014 and will need another 17.6 billion euros for 2015-2016, according to the report seen Monday by AFP as eurozone finance ministers began a meeting to discuss the Greek bailout.
Under its current bailout, the creditors -- the European Union, International Monetary Fund and European Central Bank -- had expected that Greece would need some 8.0 billion euros in additional funding.
Finance ministers are relying on the long-delayed report, drawn up by officials from the EU-IMF-ECB troika, to assess Athens' efforts to meet its targets and decide whether to release a next aid tranche of some 31 billion euros.
The report said "a financing gap over the programme has emerged due to lower privatisation proceeds, slower growth and concomitant lower revenues, and a longer horizon for correcting the excessive (public) deficit."
It said that even though Greece might find itself in a better position to raise funding on the markets in due course, "it is prudent to assume that markets may remain sceptical about Greece for a longer period, given the vulnerability resulting from the high debt ratio and political risks."
Greek Prime Minister Antonis Samaras has said the country will go broke by Friday if it does not get the latest instalment of rescue funds, with many in the eurozone reluctant to make yet more commitments to a Greece which has now been bailed out twice.
Last week Greece adopted another package of stinging austerity measures worth 13.5 billion euros, as demanded by the EU-IMF-ECB troika, and then on Sunday passed a tough 2013 budget in the hope it would get its next aid payment.
"We need to find creative solutions," Austrian Finance Minister Maria Fekter said as she went into the meeting while IMF head Christine Lagarde called for a "real fix, not a quick fix."
Officials have said Monday's meeting will likely look at a combination of a longer timeline and easier repayment terms or even some further reduction in debt so as to help Greece.
indiatimes.com
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