There are several variants of the outcome of negotiations. Debtrestructuring and financial assistance are proposed in the optimistic one. As for Greece itself, it comes to meet the requirements of creditors. In particular, the country has taken steps to reduce costs and to increase revenues.
The only country that opposes the restructuring of public debt is Germany. But the head of the IMF recalls that the solution of the Greek problem should be worked out in the nearest future. If it will not be preceded in after years the IMF may refuse to take any part in the assistance for Greece.
The meeting, which concerns the agreement on the political aspects, which will enable the IMF to continue their participation in the program, has been already held on Monday. The development of specific documents is scheduled for the next two weeks.
Prior to this, the IMF did not participate in the Greece assistance program due to some doubts concerning that Athens will not be able to achieve the budget surplus of 3.5 percent in relation to GDP by 2018. Among the offers of the IMF was the cancellation of the debt of Athens and the support of economic reforms in the country.
As for Germany, despite the fact that it had previously taken a very tough stance, now it has been softened though. This allows the IMF to participate in the program.
The option, which is now offered for the salvation of Greece, implies a decrease in budget expenditure. Such a plan should be run in case if Athens will not be able to achieve its objectives on the economy. If the stated objectives would be performed, in that case the EU could start a discussion on debt relief.
Among the short-term objectives, which were announced by the Eurogroup, the management of the public debt of Greece can be outlined. A deferment on the repayment of debts is considered as on of the steps. If Greece will reach a certain economic objectives, the Eurogroup can refer to additional tools.
The urgency of the problem is caused by the fact that in July Athens must repay the part of debt. And it comes to significant amounts. If up to this time, Greece will not receive financial assistance, it may again end up at the verge of bankruptcy.
Greece itself is also now actively seeking the ways of cooperation with the Eurogroup. Athens understand that this is the only chance to avoid a default. Therefore, all the reforms that lenders require from Greece are carried out here.
The subject of the Greek debt may be the point of interest for binary options traders. Almost always, when it has taken on the urgency, the volatility of the Euro has grown too both with the growth of the speculative interest to the currency. We recommend you to follow up the latest news and to open transactions in case of changes in the situation.