‘Greece will need third bailout by 2015’

Spiegel said on Sunday that the “troika” of the Greece’s official creditors — the European Commission, the International Monetary Fund and the European Central Bank – believes that Greece would not be able to return to the international money markets to borrow in 2015.

Citing from the most recent draft report of the troika on Greek debt crisis the magazine said in a prerelease report of its Monday edition that the country might have an “external financial need of up to EUR 50 billion”.

Spiegel also claimed that this part has been deleted from the troika report due to pressure from the German government.

Last week, Germany’s parliament supported a second bailout for Greece despite growing opposition on Chancellor Angela Merkel from the public for wasting billions on the indebted Greece. As Europe’s richest economy, Germany must contribute more than any other country in the Greece’s EUR 130 billion bailout fund.

The first bailout, which was approved by eurozone finance ministers on May 2, 2010, was worth 110 billion euros (147 billion dollars).

Greece must also restructure its debt with private creditors by March 12 to receive the second bailout; the plan will allow the country to wipe off EUR 107 billion of what it owes to private banks.

Successive rounds of austerity measures, demanded by international creditors, have forced Athens to massively cut its private and public sector wages, pensions, health and defense spending.

Greece has the highest debt burden in proportion to the size of its economy in the 17-nation eurozone. Despite austerity cuts and the bailout funds, the country has been in recession since 2009.

PG/JR

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