Reuters with the headlines and Handelsblatt also report that Troika could offer 3rd aid program to Greece
From Reuters who have seen a Creditors financing note
- EZ could get €16.3bn out to Greece under current bailout
- Funds would be made up of 10.9bn existing bank recap, 1.8bn remaining bailout tranche, 3.6bn ECB profits on Greek bonds
- Existing Greek bailout could be extended by 5 months to Nov 2015
to allow disbursement - Would allow Greece to cover 14.3bn debt redemption
It looks a convoluted deal as the payments would be made in various stages;
- First tranche (1.8bn) would be paid as soon as Greek parliament approves any deal with creditors and a first set of laws
- Second tranche (4.0bn) paid out mid-July if Greece completes prior actions in early July. 3.5bn would go to debt servicing
- Third tranche (4.7bn) could gout out early August on completion of more conditions by end of July
- Fourth tranche (1.5bn) in October. Same conditions of meeting targets
- IMF could compliment EZ financing with 3.5bn in October
- To disburse, IMF would need reforms done in Greece and guarantee of 12m forward financing, and Greek debt to be seen as sustainable (I'm already sensing a hole in the plan)
This is only the likely path for events after a deal is struck, and that's the biggest sticking point at the moment. Given the Greeks ability to hit targets thus far, I don't hold out much hope for positive headlines through all those deadlines
Reuters also report that the first tranche would be paid into a special account just for debt servicing
