Germany Poses Threat to Greece’s Bailout Agreement

12-Aug (GreekReporter) — Germany poses a potential threat to Greece’s bailout agreement as the cash-strapped country rushes to complete it in order to get disbursement of funds before August 20.

German Chancellor Angela Merkel faces resistance from within her party to hold a lower-house vote on Greece early next week, according to a Bloomberg report citing two party officials who preferred to remain anonymous because the legislative process is still under discussion.

If Germany delays, then other national parliaments will delay as well and Greece’s timeline will be lost. Athens needs an urgent disbursement of funds as it has a 3.4-billion-euro bond payment due to the European Central Bank (ECB) on August 20. If Greece misses that deadline, then a bridge loan will be needed to meet its obligation to the ECB.

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PG View: Greece’s third bailout is not yet a done deal.