IMF and Germany on disputes over Greece’s bailout plan

APD NEWS

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There’s one thing Greece and its lenders know ahead of Thursday’s meeting in Luxembourg: more than seven billion euros in aid will be approved and Greece will not default in a debt repayment in July.

But Greece’s bailout progress has been shaken by a dispute between two of its lenders, the International Monetary Fund (IMF) and the Eurozone, mainly Germany.

Greece’s government is pushing for a deal on debt relief, and IMF also calls for participation in future rescue. However, Berlin resists any talk on the issue ahead of Germany’s September election.

That means Greeks would have to continue to bear more tax hikes or job cuts. The country’s unemployment fell to over 22 percent, a five year low, but still by far the highest in the Eurozone.

The economy grew by 0.4 percent in the first quarter this year. But a full economic recovery will not be possible as long as Greek banks continue to restrict transactions and the amount of money Greeks can withdraw or transfer, and there’s still no time line as to when they will be further eased or when they will be fully lifted.

That’s because uncertainty on every level is still what’s hurting the Greek economy. Depositors still don’t trust the banks and investors remain hesitant.

However, Financial Analyst Ilias Siakantaris with Alpha TV believes that the Greek economy will be back on track, as the recent performance of Athens stock exchange shows that international investors start to realize the crisis is coming to an end.

“Trust is the key for the Greek economy right now. I wouldn’t expect amazing results from one day to the next but we can be relatively optimistic that this 7-year depression will be followed by increased flows of investment capital in Greece,” says Siakantaris.

The problem is, the working class and small business owners may not manage to wait any longer.

“If this situation doesn’t stop somewhere and if something is not done, this (economic crisis) is getting worse. I don’t know who will survive. For sure I won’t. I’ll have to shut down my store. What else can I do?” says Villy Spigou, a store owner.

(CGTN)