Greek Request for Extension

• 02.19.2015, 18:27
•  Europe,  World

The Greek government submitted a request to its euro creditors to extend the deadline of bailout funds for six months in order to avoid a cash crunch, Bloomberg reports. Eurogroup (finance ministers of 19 euro-area) confirmed that they had received the request and they have planned to evaluate the Greek proposal on Thursday.

Because of instability in the negotiations between Greece and its creditors, the Greek state and its banks have lost money market access. The effort to strike a compromise in the last days ended in resistance. Greece has not agreed with other euro-area finance ministers over the formula needed to extend the country bailout which will expire at the end of February. The dept of the country to its European partners is 240 billion euros, and Greece does not agree with the fiscal policy forced by creditors which led to an increase of the country dept and unemployment rate.

ECB policy makers on Wednesday backed the Greek banks through Emergency Liquidity Assistance. The limit of Emergency Liquidity raised from 65 billion euros to 68.3 billion euros.

As long as instability persists between Greece and its European partners, the Greek government bonds dropped for the third time in this week. Greek stocks rose 1.8 percent and the euro rose 0.2 percent ($1.1420).