A 3rd Greek bail out possibility: Apr 24, 2015

MARKET MOVING NEWS - EUR/USD
24 Apr 2015   01:53GMT

The Greek official said there was "convergence" that Greece would aim for a primary budget surplus - before debt service - of 1.2 to 1.5% of GDP this year. That is far below the goals of 3% in 2015 n 4.5% in 2016 set in Greece's 2012 EU/IMF bailout programme.

Greece has yet to agree with its partners on a comprehensive list of reforms to secure 7.2 bln euros remaining fm its 240 bln euro EU/IMF bailout.
Without a deal, investors fear it could run out of money and default on its official creditors, possibly forcing it to leave the 19-nation single currency area.

Greek daily Kathimerini reported that Athens is considering asking the euro zone's rescue fund to buy Greek government bonds held by the ECB to pay for debt redemptions due this summer.

That would amount to a 3rd Greek bailout requiring euro zone governments' agreement and parliamentary approval in some countries, such as Germany and Finland, which could only be achieved if there were a deal on a comprehensive reform package.

German Chancellor Angela Merkel said that everything must be done to prevent Greece running out of money before it reaches a cash-for-reform deal with its international creditors, amid heightened concern that Athens is nearing the brink.

Merkel, Europe's pre-eminent leader, was speaking after a meeting she called "constructive" with Greek PM Alexis Tsipras on the sidelines of a EU summit in Brussels. She said they had agreed to keep the contents of their discussion confidential.
Asked how great the risk was of Athens running out of cash before any agreement was reached with its official lenders, she told a news conference: "Everything must be undertaken to prevent that."