Bridging finance is still being discussed as a potential solution to help provide the Greek economy with much needed funds.
Yesterday, after 17 hours of negotiations, the Euro summit has agreed to start negotiations on a support programme for Greece under the European Stability Mechanism.
The programme will be subject to strict conditions and accompanied by a growth and employment package in the order of €35bn which will need to be approved by several parliaments, including Greece.
Meanwhile, J. Dijsselbloem, President of the Eurogroup, revealed finance ministers would also discuss whether to use a short term bridging finance.
Speaking today, Dijsselbloem said that after talks yesterday, a deal for bridging finance was still yet to be reached and said there would be further discussions.
“We are still continuing work and so the euro working group will look at it today and I will probably have a conference call either today or tomorrow,” said Dijsselbloem.
“We are looking at all the instruments and funds that we could use and all of them seem to have disadvantages or impossibilities or legal objections, so we are still working on it.”
George Osborne also added today that British taxpayers would not be footing the bill for whatever finance package the Eurozone comes up with.
“It’s in the interest of economic stability across Europe that this Greek deal is now signed and sealed, said Osborne.
“But let me be very clear Britain is not in the euro so the idea that British taxpayers are going to be on the line for this Greek deal is a complete non-starter, the Eurozone needs to foot its own bill.”
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