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German Finance Minister in favour of bridge loan for Greece

According to the Sueddeutsche Zeitung Daily, Germany’s Finance Ministry favours a bridge loan for Greece, in order to give its creditors sufficient time to negotiate a comprehensive third bailout.

“A program that should last three years and be worth over €80 billion needs a really solid basis,” the paper quoted a ministry source as saying. “A further bridge loan is better than just a half-finished program” [1].

Greece is currently in negotiations with the European Union and the International Monetary Fund for as much as €86 billion in loans, in order to avoid financial collapse.

The next debt payment to the European Central Bank totals €3.5 billion and is due on 20 August.

There are reports that Germany has preference for a bridge loan, although this conflicts with the view of the Greek Prime Minister Alexis Tsipras and that of the French President Francois Hollande, who said on Thursday a new bailout should be agreed by late August.

[1]. Reuters. ‘German Finance Ministry favours bridge loan for Greece: paper’. http://www.reuters.com