Athens, euro zone officials say, could be seeking a stand by

Posted: November 27, 2012 in Uncategorized

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Canada Goose online But investors see its finances as still too fragile to rely on the market.Athens’ stock market has fallen more than 11 percent in the past two days and 10 year Greek bond yields soared more than 80 basis to 7.85 percent on Wednesday, reflecting investor unease about Greece’s ability to fund itself.Athens, euro zone officials say, could be seeking a stand by facility from its partners and want the Europeans to extend enough credit to replace what it gives up from the IMF.The officials say conditions would still apply to any new funding and they are unwilling to let Greece cut the IMF out of the picture since the terms the IMF sets aid Athens’ credibility with private investors.Greece is due to hold discussions over the next two months with euro zone leaders on whether it can exit all its bailout programmes early next year. Its partners are highly sceptical and worry that new financial problems for Greece could disrupt the euro zone as a whole, as they did over the past few years.”That’s way too optimistic,” one senior EU official said of the Greek plan to rely on market funding next year, adding that the conditions applied to euro zone and IMF loans were vital to persuading other lenders that the country was creditworthy.”Investors won’t go there without a programme,” he said.The current euro zone lending plan ends in December. The IMF programme is due to last until March 2016 with some 12 billion euros still available for Athens. Canada Goose online

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