EU demands urgent action for Greece bailout
Two weeks of debate about details described as ‘ complete waste of time’
Greece will resume talks with its creditors this week after euro- area finance ministers demanded urgent action to avert an impending cash crunch.
Greece could gain access to part of its remaining bailout funds if it follows through with the required reforms, Dutch Finance Minister Jeroen Dijsselbloem said after a meeting in Brussels on Monday. Dijsselbloem, who heads the finance ministers’ group, said talks will resume Wednesday to get a better picture of Greece’s needs and the steps it is taking.
“We stand ready to further support the Greek government on the condition that we have an agreement on the whole package,” Dijsselbloem said. “If there is time pressure for financing needs that should be helpful for getting the package back on track.”
Dijsselbloem called on Greek Prime Minister Alexis Tsipras’s government to resume substantive work with authorities, saying the past two weeks’ debate about who would meet where and when had been “a complete waste of time.” He said the eurozone would only provide funds for Greece if it delivers on reforms.
“We agreed that the discussions with the institutions will take place in Brussels,” Dijsselbloem told reporters after the meeting. “In parallel, as needed, technical teams from the institutions will be welcomed in Athens, with a view to support this process.”
As Greek officials struggle to meet the eurozone’s demands, the government’s cash supplies are running low. One official from the currency bloc, who spoke on the condition of anonymity, said on Monday that Greece’s funding might last for one, two or three weeks, though it was difficult to be precise.
The European Central Bank is also raising the pressure on the government in Athens. ECB officials will increase the scrutiny on the Emergency Liquidity Assis- tance extended to Greek lenders with an extraordinary review this week, two officials familiar with the matter said.
Tsipras has until June to reach a broader agreement with the eurozone on further support for his country.
While the negotiations continue, the ECB is effectively financing the Greek private sector because of its support for its banks.