13th Apr 2021

Greece says it cannot fulfil demands for loans

Greece has told its creditors it cannot implement some of the extra changes required in exchange for fresh bailout loans.

In a letter sent to the European Commission, the European Central Bank (ECB) and the International Monetary Fund (IMF) last week, finance minister Euclid Tsakalotos said some of the additional demands could not be fulfilled.

Read and decide

Join EUobserver today

Become an expert on Europe

Get instant access to all articles — and 20 years of archives. 14-day free trial.

... or subscribe as a group

The existence of the letter, first revealed by Greek media and Reuters, was confirmed to EUobserver.

It could further delay disbursement of much-needed funds to pay off IMF loans expiring in June and European Central Bank bonds maturing in July.

After months of negotiations, Greece and its lenders last week agreed on the disbursement of €10.3 billion in two tranches, in mid-June and in September, under the condition that Athens amended laws concerning pensions, privatisation and sale of non-performing loans.

In the marathon talks they also agreed to open the way for debt relief, something Greece has been keen to secure.

There are two problematic issues for the Greek government.

It said it cannot axe aid for small pensions, as required by creditors. It also wants to exempt loans with a state guarantee from the loan sale scheme.

Greek daily Kathimerini reported that the governement initially hoped to complete all the necessary changes before the ECB’s governing council meets on Wednesday (1 June).

The new target to complete the necessary actions has been moved to Friday.

EU and IMF agree debt relief for Greece

Greece's creditors will take measures to reduce the cost of debt repayment and for the first time say debt could be reduced in the future. They also decided a €10-billion new loan.

EU to drip-feed Greek treasury

Eurozone finance ministers gave their green light to the disbursement of €1.1 billion, but said they would wait before releasing another €1.7 billion.

News in Brief

  1. Putin refuses to talk about military build-up, Ukraine says
  2. EU bank to help Greece manage corona-recovery funds
  3. Johnson & Johnson vaccine deliveries to EU begin
  4. EU sanctions commander of Iran's Revolutionary Guard
  5. UK opens investigation into ex-PM Cameron lobbying
  6. 'Significant differences' in EU-UK talks on Northern Ireland
  7. Bulgarian PM reveals price rise in new EU-BioNTech deal
  8. Biden sending envoy to Brussels

Vietnam jails journalist critical of EU trade deal

A journalist who had demanded the EU postpone its trade deal with Vietnam until human rights improved has been sentenced to 15 years in jail. The EU Commission says it first needs to conduct a detailed analysis before responding.

Stakeholders' Highlights

  1. Nordic Council of MinistersDigitalisation can help us pick up the green pace
  2. Nordic Council of MinistersCOVID19 is a wake-up call in the fight against antibiotic resistance
  3. Nordic Council of MinistersThe Nordic Region can and should play a leading role in Europe’s digital development
  4. Nordic Council of MinistersNordic Council to host EU webinars on energy, digitalisation and antibiotic resistance
  5. UNESDAEU Code of Conduct can showcase PPPs delivering healthier more sustainable society
  6. Nordic Council of MinistersWomen benefit in the digitalised labour market

Latest News

  1. How the pandemic became an EU goldmine for crime
  2. China responds to 'low-efficacy' vaccine fears
  3. Merkel party chiefs support Laschet's chancellor bid
  4. EU refuses to bail out Montenegro's China loan
  5. Industry lobby to 'co-decide' on nearly €10bn EU public money
  6. Why Ursula von der Leyen won't go
  7. Incorporating gender in trade policy to benefit all
  8. Does Italian regionalism actually work?

Join EUobserver

Support quality EU news

Join us