REPORT: Greece Gives Up Immediate Plan For Getting New Bailout Terms

Greece soccer fan

Photo: ESPN

The Financial Times reports that Greece has given up on a plan to modify the terms of its bailout agreement until the government passes more reforms.Those modifications would have altered a €174 billion plan agreement made in February, according to that report.

This is bad news for the sustainability of the Greek government, which only presides over Parliament with a shaky majority.

From the FT: 

Yannis Stournaras, finance minister, said the governing coalition would have to accelerate reforms before asking for modifications in a €174bn programme agreed in February with the European Union and the International Monetary Fund.

It is still unclear which reforms the Greek government would have to pass before it felt sufficient progress have been made to demand more concessions from the country’s European creditors.

Either way, this is unlikely to please the large percentage of Greeks that voted against the members of the current coalition, calling for revisions to the Memorandum of Understanding that governs Greece’s bailout package.

The government is supposed to meet with officials from the so-called troika (the European Central Bank, European countries, and the IMF) later this month to discuss an updated bailout agreement.

NOW WATCH: Money & Markets videos

Want to read a more in-depth view on the trends influencing Australian business and the global economy? BI / Research is designed to help executives and industry leaders understand the major challenges and opportunities for industry, technology, strategy and the economy in the future. Sign up for free at