EC Says Greece Needs another Bailout

European Commission Vice President Valdis Dombrovskis claims Greece may require a third rescue accord once the existing program ends this coming June. Markets may not yet agree to release loans to Athens despite a credit line in the euro region.

Greek Prime Minister Alexis Tsipras insisted his government does not need additional assistance. They have received pledges of 240 billion euro or $269 billion worth of aid from two packages provided it meets lender demands to make use of outstanding funds.

In 2013, Germany’s Finance Minister Wolfgang Schaeuble also said that a new assistance is necessary for Greece to comply with debt obligations. Greece needs from 12 billion to 50 billion euro. The EC official maintains that the government of Tsipras must conform to conditions of the current package and evaluate what the market situation will impose.

Tsipras is trying to sell his policy agenda to international creditors. Meanwhile, the Greek parliament will act on draft legislation to satisfy election commitments and facilitate an aid evaluation by the European Commission, ECB and International Monetary Fund.

Athens is looking for temporary bill financing from its commercial banks which depend on emergency liquidity from the ECB. The dependence of Greek banking institutions on EU system liquidity is presently near 100 billion euro compared to 45 billion euro last November.

The ECB asked Greek banks not to increase Treasury bill disclosure but this can be rolled over unsettled balances.