Thursday, July 9, 2015

Post Referendum Results in a Deal for Greece

Germany concedes Greece needs debt relief. U.S. President Barack Obama and Treasury Secretary Jack Lew have insisted the American economy insulated from #grexit, or Greece's exit from the Eurozone.

After defaulting on a $1.7 billion IMF loan, Greek Prime Minister Alexis Tsipras is supposed to deliver a set of economic reforms Thursday that could lead to a third bailout of Greece. Obama and Lew have reported made multiple phone calls pushing for a deal to Tsipras. European Council meetings in Brussels featured Tsipras, German Chancellor Angela Merkel, French President Francois Hollande, International Monetary Fund Managing Director Christine Lagarde, European Central Bank President Mario Draghi, Dutch Finance Minister Jeroen Dijsselbloem and Klaus Regling, head of the EU’s bailout funds.

Tsipras, citing an IMF report, demanded thirty percent debt forgiveness and a twenty year grace period. Greece will need €10 billion over the next few months and an additional €50 billion in the next three years, says the IMF. Panos Kammenos, the Greek defense minister and Tsipras’s right-wing coalition partner, told reporters on Thursday that Greece was on track for a deal with creditors.