Bloomberg News

Juncker Says Payment of Next Greek Aid Loan Possible by Dec. 15

November 07, 2011

Nov. 7 (Bloomberg) -- Luxembourg’s Jean-Claude Juncker, who leads the group of euro-area finance ministers, said payment of the next installment of loan aid to Greece is possible by mid- December if the new government gives a written commitment to bailout terms.

“If the Greek government puts in writing, with the signatures of the two main party presidents, that the decisions of Oct. 26 and 27 are being implemented and that the new Greek program can only be realized under strictest conditions, I expect that we’ll take this decision in the course of November at such an early stage that a disbursement of the 8 billion euros ($11 billion) can be made before Dec. 15,” Juncker said today in Brussels after leading a ministerial meeting.

Juncker expects the written pledge from the Greeks by “the end of the week,” he said.

“We demand that we get a letter this week from the new Greek prime minister, once he’s been named, that assures that the new Greek government that’s being formed will follow all the decisions from Oct. 26 and 27 and that they’re also prepared that if they want a second Greek rescue program -- and they want it -- to take over all the conditions that have been fixed until now. The letter should not only be signed by the new Greek prime minister but also by the two presidents of the parties,” Juncker said, “because in Greece elections are expected in February and we want the commitment from the main political powers in Greece beyond the next elections; otherwise we can’t continue to provide the assistance that we’re providing.”

Juncker said he knows who the next Greek premier will be “but I won’t tell you.”

To contact the reporter on this story: Stephanie Bodoni in Brussels at sbodoni@bloomberg.net

To contact the editor responsible for this story: Jones Hayden at jhayden1@bloomberg.net


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