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

DRC Tries Mega-Farms to Feed Population

Park at Boukanga Lonzo currently has 5,000 hectares under cultivation, crops stretching as far as eye can see, and is start of ambitious large-scale agriculture plan More

Video Survivor Video Testimonies Recount Horrors of Guatemalan Genocide

During a conflict that spanned more than three decades, tens of thousands of indigenous Mayans were killed More

Video War, Drought Threaten Iraq's Marshlands

Areas are spawning ground for Gulf fisheries, a resting place for migrating wildfowl, source of livelihood for fishermen and herders who have called the marshes home for generations 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.
Nobel Prize Winner Malala Talks to VOAi
X
August 31, 2015 2:17 AM
Nobel Peace Prize winner Malala Yousafzai met with VOA's Deewa service in Washington Sunday to talk about women’s rights and unveil a trailer for her new documentary. VOA's Katherine Gypson has more.
Video

Video Nobel Prize Winner Malala Talks to VOA

Nobel Peace Prize winner Malala Yousafzai met with VOA's Deewa service in Washington Sunday to talk about women’s rights and unveil a trailer for her new documentary. VOA's Katherine Gypson has more.
Video

Video War, Drought Threaten Iraq's Marshlands

Iraq's southern wetlands are in crisis. These areas are the spawning ground for Gulf fisheries, a resting place for migrating wildfowl, and source of livelihood for fishermen and herders. Faith Lapidus has more.
Video

Video Colombians Flee Venezuela as Border Crisis Escalates

Hundreds of Colombians have fled Venezuela since last week, amid an escalating border crisis between the two countries. Last week, Venezuelan President Nicolas Maduro ordered the closure of a key border crossing after smugglers injured three Venezuelan soldiers and a civilian. The president also ordered the deportation of Colombians who are in Venezuela illegally. Zlatica Hoke reports.
Video

Video Rebuilding New Orleans' Music Scene

Ten years after Hurricane Katrina inundated New Orleans, threatening to wash away its vibrant musical heritage along with its neighborhoods, the beat goes on. As Bronwyn Benito and Faith Lapidus report, a Musicians' Village is preserving the city's unique sound.
Video

Video In Russia, Auto Industry in Tailspin

Industry insiders say country relies too heavily on imports as inflation cuts too many consumers out of the market. Daniel Schearf has more from Moscow.
Video

Video Scientist Calls Use of Fetal Tissue in Medical Research Essential

An anti-abortion group responsible for secret recordings of workers at a women's health care organization claims the workers shown are offering baby parts for sale, a charge the organization strongly denies. While the selling of fetal tissue is against the law in the United States, abortion and the use of donated fetal tissue for medical research are both legal. VOA’s Julie Taboh reports.
Video

Video Next to Iran, Climate at Forefront of Obama Agenda

President Barack Obama this week announced new initiatives aimed at making it easier for Americans to access renewable energy sources such as solar and wind. Obama is not slowing down when it comes to pushing through climate change measures, an issue he says is the greatest threat to the country’s national security. VOA correspondent Aru Pande has more from the White House.
Video

Video Arctic Draws International Competition for Oil

A new geopolitical “Great Game” is underway in earth’s northernmost region, the Arctic, where Russia has claimed a large area for resource development and President Barack Obama recently approved Shell Oil Company’s test-drilling project in an area under U.S. control. Greg Flakus reports.
Video

Video Philippine Maritime Police: Chinese Fishermen a Threat to Country’s Security

China and the Philippines both claim maritime rights in the South China Sea.  That includes the right to fish in those waters. Jason Strother reports on how the Philippines is catching Chinese nationals it says are illegal poachers. He has the story from Palawan province.
Video

Video China's Spratly Island Building Said to Light Up the Night 'Like A City'

Southeast Asian countries claim China has illegally seized territory in the Spratly islands. It is especially a concern for a Philippine mayor who says Beijing is occupying parts of his municipality. Jason Strother reports from the capital of Palawan province, Puerto Princesa.
Video

Video Ages-old Ice Reveals Secrets of Climate Change

Ice caps don't just exist at the world's poles. There are also tropical ice caps, and the largest sits atop the Peruvian Andes - but it is melting, quickly, and may be gone within the next 20 years. George Putic reports scientists are now rushing to take samples to get at the valuable information about climate change locked in the ice.

VOA Blogs

World Currencies

EUR
USD
0.8916
JPY
USD
121.32
GBP
USD
0.6487
CAD
USD
1.3252
INR
USD
66.401

Rates may not be current.