Greece Races to Secure Bailout Deal Amid German Doubts

Greece faces a weekend of intensive negotiations to tie up a bailout of 86 billion euros ($93 billion) in time to meet its debt obligations for this month, as German lawmakers cautioned against rushing to strike a deal.

   Greece and its creditors have set a Monday target to complete the so-called memorandum of understanding that sets out the budget-austerity and economic-overhaul conditions required for a third rescue, according to three officials with knowledge of the discussions who asked not to be named because they are private.

   Talks are entering a crucial phase since without an agreement by the beginning of next week, Greece will have to seek another bridge loan to pay a 3.2 billion-euro debt due to the European Central Bank Aug. 20, one of the officials said. If a deal emerges, Greece will be in line for an initial tranche of more than 20 billion euros, comprising 7 billion euros to cover a previous rescue loan, a buffer for Greek banks of 10 billion euros, plus the ECB payment, the official said.

   “Our experts on the ground are working on the text of the memorandum of understanding,” European Commission spokeswoman Mina Andreeva told reporters in Brussels on Friday. “We are trying to make swift progress in order to have a deal, preferably before Aug. 20.”

Πηγή: bloomberg.com