According to sources close to the Eurogroup, Eurozone finance ministers will hold a video conference on October 31, during which they will decide whether it is possible to release the next tranche aid for Greece, amounting to 35 billion euros.
It is expected that the payment should be approved without problems, as the Troika has agreed this week not only to unblock it but also to extend the deadline by which Greece has to meet the deficit target by two years.
ECB: Bailout request doesn't automatically activate the bond purchase program
ECB board member Jörg Asmussen commented on the central bank's bond purchase program on Friday, saying that if a EU Member State requests a bailout it doesn't automatically activate the bond-buying.
Asmussen explained that after a bailout request is submitted it needs to be first analyzed by the ESM. The ECB steps in only when all the conditions required by the rescue fund are fulfilled and then evaluates if a central bank intervention is needed and how long should it last.
Spanish unemployment hits record high in Q3
Spanish Unemployment Survey, published by the National Institute of Statistics on Friday, revealed that the country's unemployment rate has risen to a new record high of 25% in the third quarter of the year, following 24.63% recorded the previous quarter. Nevertheless, this result is slightly more positive than the expected increase to 25.10%.
The total number of the unemployed in Spain reached 5.778.1000, after 85.000 people were left without work in the third quarter of 2012 (49.400 jobs were shed from the public sector and 47.600 from the private sector).
Following the release of the unemployment numbers the Spanish risk premium rose to 411 points, while the 10-year bond yield reached 5.66%.
European stocks were trading higher on Thursday, following reports that the BoJ is considering to intervene with extra ¥10 Trillion in asset purchases. Hopes for the recession coming to an end in the UK rose after the release of better-than-expected third quarter GDP data, which showed a 1% increase. Various officials have also been giving contradiction declarations on the state of the bailout negotiations between Greece and the Troika.
Confusion surrounding Greek bailout deal grows
Following Greek Finance Minister Yannis Stournaras' declarations on Wednesday, that Greece reached an agreement with the Troika on the EU bailout program terms, contradicting information on the actual progress of the negotiations is flowing in from various sources on Thursday.
Despite yesterday's announcement that Greece would be granted a two-year extension of the deadline by which it is supposed to implement the austerity measures agreed upon during the talks with the Troika, various officials have been denying the news.
ECB president Mario Draghi said that the negotiations were still not over while ECB board member Jörg Asmussen stated that the alleged extension “would mean the other eurozone states having to provide more financial means.” Neither Finance Minister Wolfgang Schäuble nor European Commission officials could confirm Yannis Stournaras' claims, when inquired.
On the other hand, German newspaper Handelsblatt published an article on Thursday in which it suggests that negotiations have been finalized and that Greece would be grated the next tranche of the bailout of around 16-20 billion euros.
Ireland to grow 1% in 2013, says IMF after Troika approves Irish accounts
Ireland would be the first rescued country to grow in the Eurozone after the IMF published an inform that say the Irish's GDP will grow at the 1% pace in the 2013. The decision comes following the troika approval of the Irish government job on budget and reforms.
In this line, the troika has also approved the next bailout eighth tranche valued by EUR2.2 billion. European Commission's official Olli Rehn is pleased with the efforts but he reminded that unemployment is still too high.