Reuters - Video

Edition: US | UK | IN | CN | JP

Video

Greece's bailout faces IMF hurdle

Monday, August 17, 2015 - 01:41

Euro zone finance ministers have approved Greece's 86 billion-euro deal, but now German Chancellor Angela Merkel needs to reassure skeptical lawmakers that the IMF will take part in Greece's third bailout, ahead of a vote on Wednesday. Ciara Lee reports.

▲ Hide Transcript

View Transcript

The morning sun beats down on Athens residents - but for many, a cloud has been cast, as the country faces up to its new bailout conditions. (SOUNDBITE) (Greek) ATHENS RESIDENT, NIKOS, 52, SAYING: "I don't think there is any possibility that we can move forward. People have no money, it isn't going to work!" European markets rose in morning trade after euro zone finance ministers approved the 86-billion euro bailout on Friday. But sticking points amongst Greece's lenders remain. The IMF has been pressing euro zone countries to provide Athens with "significant" debt relief. The bank says it will wait until October to decide whether it participates in the programme. FxPro's Simon Smith. (SOUNDBITE) (English) FXPRO CHIEF ECONOMIST SIMON SMITH "The IMF is going to drive a hard bargain I think and say look extending maturities saying you can pay us back over a longer period is not going to be sufficient in their view. And debt restructuring will be as in a write-down of debts will be what they are looking for. That's politically very unacceptable within Europe so I think we're going to head for quite a significant standoff." The uncertainty is threatening to become a headache for German Chancellor Angela Merkel ahead of a Bundestag vote on Wednesday. Germany has strongly opposed any debt haircut, but lawmakers from Merkel's party want the IMF involved because of its reputation and clout. Merkel's not the only one facing a potential rebellion. Greek Prime Minister Alexis Tsipras has now got to follow through with imposing tax hikes and spending cuts. He's suffered the biggest backlash yet from his leftist Syriza party, and is under pressure to consider a confidence vote that could pave the way for early elections if he loses.

Press CTRL+C (Windows), CMD+C (Mac), or long-press the URL below on your mobile device to copy the code

Greece's bailout faces IMF hurdle

Monday, August 17, 2015 - 01:41