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12 Aug 2013
German Finance Ministry denies seeing Bundesbank report on Greek bailout
FXstreet.com (Barcelona) - Following an article published in Der Spiegel over the weekend and suggesting that the Bundesbank sees a need for additional rescue funds for Greece, the German Finance Ministry denied having any information on the issue.
According to the finance ministry´s spokesman Martin Kotthaus: “The latest troika report finds that Greece is making good progress with its reforms. As you know, the current program runs until 2014, so I find it difficult to speculate now about what will happen in 2014.”
Kotthaus added that Greek reforms were progressing well and that the country was expected to overcome the crisis. He stressed that it was not possible to predict what would happen in several month's time and that the finance ministry would not speculate on reports of future funding gaps.
In its article Der Spiegel claimed that the document on Greece was prepared for the German Finance Ministry and the IMF by the Bundesbank and that it stressed the need for coming up with a new bailout program for the indebted country at the beginning of 2014 at the latest.
According to Tim Davis, Rates and FX Research Global Strategist at TD Securities comments: “There is little new in the story as there is already a broad expectation that the Greek situation will be re-evaluated over the next year once the German elections are out of the way, so the story has more to do with electioneering and trying to damage Angela Merkel’s reelection campaign into the September 22nd elections.”
According to the finance ministry´s spokesman Martin Kotthaus: “The latest troika report finds that Greece is making good progress with its reforms. As you know, the current program runs until 2014, so I find it difficult to speculate now about what will happen in 2014.”
Kotthaus added that Greek reforms were progressing well and that the country was expected to overcome the crisis. He stressed that it was not possible to predict what would happen in several month's time and that the finance ministry would not speculate on reports of future funding gaps.
In its article Der Spiegel claimed that the document on Greece was prepared for the German Finance Ministry and the IMF by the Bundesbank and that it stressed the need for coming up with a new bailout program for the indebted country at the beginning of 2014 at the latest.
According to Tim Davis, Rates and FX Research Global Strategist at TD Securities comments: “There is little new in the story as there is already a broad expectation that the Greek situation will be re-evaluated over the next year once the German elections are out of the way, so the story has more to do with electioneering and trying to damage Angela Merkel’s reelection campaign into the September 22nd elections.”
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