News / Economy

Eurozone Ministers Delay Greece Bailout Installment Until October

Germany Finance Minister Wolfgang Schauble (L) talks to Eurogroup President Jean-Claude Juncker after posing with other European Union finance ministers for a photo during a meeting of the Economic and Financial Affairs Council in Wroclaw, Poland, Septemb
Germany Finance Minister Wolfgang Schauble (L) talks to Eurogroup President Jean-Claude Juncker after posing with other European Union finance ministers for a photo during a meeting of the Economic and Financial Affairs Council in Wroclaw, Poland, Septemb

Eurozone finance ministers delayed Friday a decision on paying out the next batch of emergency loans to Greece, pending a review of the nation's finances. Greece had been scheduled to receive an $11-billion installment from the first bailout at the end of September. The debt-heavy country has said it will run out of cash next month unless it receives the money. But the delay appears to have eased some concerns about a possible default by Greece, for now.

With the government's debt equal to about 150 percent of its gross domestic output, Greece could have serious problems making payments on its loans next month.

But European Union officials at a meeting in Poland said whether Greece receives the second portion of a $152-billion bailout package depends on its commitment to keep spending in check.

E.U. Economic Affairs Commissioner Ollie Rehn said, "Technically we have all the chances of taking a decision in the first part of October so as to disburse before mid-October for Greece, but really on the condition that Greece meets all the fiscal and other conditions. And now the ball is in the Greek court."

Worries that Greece might default on its loan payments have driven much of the recent turbulence in financial markets. But coordinated action Friday by European central banks to keep money flowing into the banking sector helped ease some of those concerns. That, and a new commitment from Europe's largest economy to secure the future of the euro, at all costs.

German chancellor Angela Merkel said, "Everything which needs to be done to keep the euro stable, needs to be done. Everything that goes against this aim must be avoided."

U.S. Treasury Secretary Timothy Geithner attended the meeting in Poland. He urged European leaders to act quickly - and warned that political wrangling over the debt crisis could make matters worse.

Bank analyst Mark Matthews said increasing pressure from the United States reflects the growing threat from a larger European crisis.    

"So the implicit threat, I think, from the U.S. and the IMF is that 'if you guys don't sort your act out, you're taking down the whole world by not doing so' and they're basically threatening not to fund the bailout package," said Matthews.

Despite the lack of fresh action by European ministers, broader market shares in Asia and the U.S. rose on hopes that policy makers will be able to reach agreement on a bold plan to deal with the region's debt problem - before it's too late.

You May Like

China Investigates Former Powerful Security Chief

Former security chief and member of Politburo Standing Committee, Zhou Yongkang, under investigation for suspected 'serious disciplinary violation' More

India, US Look to Reset Ties During Kerry Visit

This week's talks will be first high level interaction between two countries since Prime Minister Narendra Modi took charge More

Video Young African Leadership Program Renamed to Honor Mandela

YALI program, launched by President Obama in 2010, aims to build skills in business, entrepreneurship, public management and civic leadership More

This forum has been closed.
Comments
     
There are no comments in this forum. Be first and add one

Featured Videos

Your JavaScript is turned off or you have an old version of Adobe's Flash Player. Get the latest Flash player.
Vietnamese Staging Chinese Product Boycott After Oil Rig Spati
X
Reasey Poch
July 28, 2014 7:18 PM
China recently pulled an oil rig from an area of the disputed South China Sea that Vietnam also claims. Despite the action, the incident has had a lingering effect on consumers in Vietnam. VOA's Reasey Poch reports from Hanoi on an effort to boycott Chinese products.
Video

Video Vietnamese Staging Chinese Product Boycott After Oil Rig Spat

China recently pulled an oil rig from an area of the disputed South China Sea that Vietnam also claims. Despite the action, the incident has had a lingering effect on consumers in Vietnam. VOA's Reasey Poch reports from Hanoi on an effort to boycott Chinese products.
Video

Video ESA Spacecraft to Land on a Comet

After a long flight through deep space, a European Space Agency probe is finally approaching its target -- a comet millions of kilometers away from earth. Scientists say the mission may lead to some startling discoveries about the origins of the water on earth. VOA’s George Putic has more.
Video

Video Young Africans Arrive in US for Leadership Program

President Barack Obama's Young African Leadership Initiative has brought hundreds of young Africans to the United States for a six-week program aimed at building their knowledge and skills in fields such as public administration and business. Out of the 50,000 young Africans who applied for the program, just one percent was accepted. VOA's Laurel Bowman caught up with some of those who made the cut and has this report.
Video

Video In Honduras, Amnesty Rumors Fuel US Migration Surges

False rumors in Central America are fueling the current surge of undocumented young people being apprehended at the U.S. border. The inaccurate claims suggest the U.S. will give amnesty to young migrants from the region. As VOA's Brian Padden reports from Honduras, these rumors trace back to President Obama's 2012 executive order to halt deportations for some young undocumented immigrants already living in the United States.
Video

Video Students in Business for Themselves

They're only high school students, but they are making accessories for shoes, fabricating backpacks and doing product photography - all through their own businesses. It's the result of a partnership between a non-profit organization that teaches entrepreneurship and their schools. VOA's Mike O'Sullivan and Deyane Moses met the budding entrepreneurs near Los Angeles.
Video

Video Astronauts Train in Underwater Lab

In the world’s only underwater laboratory, four U.S. astronauts train for a planned visit to an asteroid. The lab - called Aquarius- is located five kilometers off Key Largo, in southern Florida. Living in close quarters and making excursions only into the surrounding ocean, they try to simulate the daily routine of a crew that will someday travel to collect samples of a rock orbiting far away from earth. VOA’s George Putic has more.

AppleAndroid

World Currencies

EUR
USD
0.7305
JPY
USD
101.53
GBP
USD
0.5830
CAD
USD
1.0656
INR
USD
60.075

Rates may not be current.