Greece is set to receive 1 billion euros (1.26 billion dollars) from eurozone partners in June, helping to keep the cash-strapped country afloat as it prepares to form a new government, sources in Brussels said Monday.
The eurozone's rescue fund, the European Financial Stability
Facility, had in May approved a 5.2-billion-euro payment for Greece,
but kept 1 billion euros on hold because it was "not needed before
June."
That money is now expected to be made available, sources said.
Greece is in line to receive a far more substantial amount with a
second installment from its latest bailout programme - 31.2 billion
euros - but it is not clear if and when the payment would be
approved.
In a research note, Barclays Bank said Greece could survive until
August 20, when it will have to repay 3.1 billion euros in bonds held
by its eurozone creditors.
On Sunday, euro area finance ministers said European Union and
International Monetery Fund (IMF) experts would go to Athens to
discuss the continuation of the bailout programme "as soon as a new
government is in place."
Athens needs international loans to avoid bankruptcy, but after
two months of political deadlock, it has fallen behind on the reform
agenda it had agreed to in return for aid, and is also struggling
with a worsening recession.
Analysts are questioning the extent to which the EU and IMF will
be willing to respond to Greece's plight by softening bailout terms.
The agreement Greece signed with them in March gives it at least
the possibility of asking for concessions.
The text says that the country can "consult" with its
international creditors on being given time "beyond 2014" to meet
deficit reduction targets "in the event of a significantly
deeper-than-anticipated recession."
