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> Economy

Bloomberg: Delays in Greek program review might lead to a cash crunch

Greece’s next bite of bailout money may turn into a movable feast

Newsroom January 26 02:46

If Greek Prime Minister Alexis Tsipras is not able to convince Europe that he will fulfill his promises, Greece’s next bite of bailout money may turn into a movable feast, says Bloomberg.

In an article on Greek review program, Bloomberg mentions that any delays in successful completion of the review of the Greek program will have negative consequences for Greek economy.

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“Everyone got used to the fact the reviews take longer,” Lithuanian Finance Minister Rimantas Sadzius said in an interview on Friday. “Everyone’s prepared to demand that agreements are implemented at 100 percent.”

As the article mentions, “European governments won’t rush additional aid until Tsipras delivers on pledges to fix Greece’s pension system, update its labor markets and close fiscal gaps” adding that “a slow approach has already pushed borrowing costs to levels not seen since August and risks renewing last year’s conflict that nearly ended Greece’s membership in the euro area”.

The article also says that if Greece cannot be able to unlock more funding, it might face a cash crunch by the middle of the year.

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