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Greece to need more bailout loans by start of 2014: Germany's central bank

Posted by EU Times on Aug 19th, 2013 // No Comment

mozaheb20130812224216163 — A German flag flies in front of the Bundesbank headquarters in Frankfurt.

A report has revealed a document showing Germany’s central bank predicts that the recession-hit Greece will need more rescue loans from its international creditors by the start of the next year.

According to the report published by prominent German magazine Der Spiegel earlier this week, the document from the Bundesbank indicated that the cash-strapped Mediterranean country will need more bailout loans from the so-called troika of international lenders — the European Union (EU), the European Central Bank (ECB), and the International Monetary Fund (IMF) by the start of 2014.

The German magazine dubbed the document a Bundesbank report prepared for the IMF and German finance ministry.

Greece has been dependent on bailout funds from international rescue loans approved by the troika of international creditors since May 2010.

The Greek economy is in its sixth year of recession due to fiscal mismanagement resulting in tax rises and spending cuts.

This is while Greece’s jobless rate reached 27.6 percent in May 2013, up from 27.0 percent in April, according to a report released on August 8 by Greece’s statistic service LSTAT.

The agency added that the youth aged between 15 and 24 were hit the hardest with a 64.9 unemployment rate in May.

The country’s unemployment rate stands at more than double the eurozone’s average reading of 12.1 percent, reflecting a deepening recession after years of austerity being imposed under the EU bailout plan.

Europe plunged into financial crisis in early 2008. The worsening debt crisis has forced the EU governments to adopt harsh austerity measures and tough economic reforms, which have triggered incidents of social unrest and massive protests in many European countries.

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