Would you believe it?
There may be a big delay in Greece getting their third bailout by 20th August. Surprisingly the delay won't be the fault of the Greeks but due to Germany
Focus magazine reports that the German parliament meeting that was scheduled for mid-august (18th I think it was) may have to be postponed. Unnamed officials speaking to Focus said that the EC's timetable for talks is much too tight and so may cause the Germans to put off their vote in parliament
So far the German government has declined to comment (well it is Saturday). If it does get put back that will give Greece a big headache as, among other things, they have to pay €3.2bn to the ECB by the 20th
In other news, Greece's economy minister, George Stathakis, has said in a Greek newspaper interview that Greece will get 30 years to pay back the third bailout. He also says;
- Long term loan from ESM will constitute mini restructuring of Greek debt, replacing short term IMF & ECB loans
- Greece latest deal with lenders is economically viable
- Deal opens prospect of significant restructuring of debt, as per IMF request
- Creation of new political party that wants a return to Drachma would fail
- Exit from Euro wouldn't ensure against internal devaluation
- Capital controls to be kept in place until banking system is fully stabilised
- Government will make sure that primary residences are protected in any legislation that covers bad loans
That last comment perhaps gives some idea of what terms are being put forward in the negotiations. Watch out if you have a second home and you owe money on it
