On Sunday, August 5th, high representatives from the European Union, International Monetary Fund and the European Central Bank concluded their visit in Greece. Troika seeks progress in measures implemented in Greece since the general election in June, but the decision on the next tranche of money from the bailout loan has been postponed to early September, when officials from the EU, IMF and ECB meet again in Athens to negotiate further steps.
However, the situation does not seem very rosy. Greece only has a few weeks left to convince the creditors about its sincere commitment to apply further austerity measures, even though the country has been struggling with deep recession for over 5 years. Greek unemployment is the second highest in the EU and its government debt climbed up to 132.4% of GDP in the first quarter of 2012. Even now the Greek government is struggling to repay €3.2bn bond which matures later this month. If it fails to receive another tranche from the troika, it will not be able to avoid default and most probably leaving euro area.
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