BRUSSELS: The eurozone has blocked 1.0 billion out of 5.2 billion euros in bailout loans for Greece until Monday amid uncertainty over the country's political future, a European government source said.
"An amount of 4.2 billion euros will be disbursed on 10 May," said a statement from the EU's temporary bailout fund, the European Financial Stability Facility.
Eurozone officials who met Wednesday evening "decided to leave the decision on disbursement of one billion to the Eurogroup on Monday", said the European source, referring to the eurozone finance ministers.
"The remaining funds of 1.0 billion euros are not needed before June and will be disbursed depending on the financing needs of Greece," added the statement released after the EFSF's board of directors met on Wednesday.
Telephone talks between finance ministers from around the single currency area have also been pencilled in for Thursday, another eurozone government source said as international backers turn towards checks on the remainder of a 130-billion-euro second package of loans agreed by European leaders in March.
This came as Luxembourg Foreign Minister Jean Asselborn warned that future loans would not be automatically forthcoming unless Greece installed a stable government.
"We have to say to the Greek people right now that the situation is serious, that no European Union country will be able to release even a portion of the 130 billion euros for the Greeks, if there is no functioning government that respects the rules and manages the disbursed money," he said in Brussels.
A spokesman for another eurozone country said: "It's clear people are very worried about what is happening in Athens." Eurozone finance ministers are due to meet in person on Monday in Brussels.
In Athens, Gikas Hardouvelis, economic advisor to outgoing Prime Minister Lucas Papademos, warned that Greece's future was up in the air after voters in Sunday elections deserted the mainstream parties which have endorsed tough EU and International Monetary Fund bailout conditions.
Greece is trying all avenues to nail down a governing coalition over the coming days -- repeat elections having otherwise been mooted for June.
"If we say no to everything, we leave the eurozone," Hardouvelis said. Greece is due to repay on May 15 around 450 million euros of bonds that holders refused to write down under a restructuring of private debt. Athens is also scheduled to return some 3.3 billion euros to the European Central Bank by May 18.
indiatimes.com
"An amount of 4.2 billion euros will be disbursed on 10 May," said a statement from the EU's temporary bailout fund, the European Financial Stability Facility.
Eurozone officials who met Wednesday evening "decided to leave the decision on disbursement of one billion to the Eurogroup on Monday", said the European source, referring to the eurozone finance ministers.
"The remaining funds of 1.0 billion euros are not needed before June and will be disbursed depending on the financing needs of Greece," added the statement released after the EFSF's board of directors met on Wednesday.
Telephone talks between finance ministers from around the single currency area have also been pencilled in for Thursday, another eurozone government source said as international backers turn towards checks on the remainder of a 130-billion-euro second package of loans agreed by European leaders in March.
This came as Luxembourg Foreign Minister Jean Asselborn warned that future loans would not be automatically forthcoming unless Greece installed a stable government.
"We have to say to the Greek people right now that the situation is serious, that no European Union country will be able to release even a portion of the 130 billion euros for the Greeks, if there is no functioning government that respects the rules and manages the disbursed money," he said in Brussels.
A spokesman for another eurozone country said: "It's clear people are very worried about what is happening in Athens." Eurozone finance ministers are due to meet in person on Monday in Brussels.
In Athens, Gikas Hardouvelis, economic advisor to outgoing Prime Minister Lucas Papademos, warned that Greece's future was up in the air after voters in Sunday elections deserted the mainstream parties which have endorsed tough EU and International Monetary Fund bailout conditions.
Greece is trying all avenues to nail down a governing coalition over the coming days -- repeat elections having otherwise been mooted for June.
"If we say no to everything, we leave the eurozone," Hardouvelis said. Greece is due to repay on May 15 around 450 million euros of bonds that holders refused to write down under a restructuring of private debt. Athens is also scheduled to return some 3.3 billion euros to the European Central Bank by May 18.
indiatimes.com
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