Greece Appeals For More Loans Before Proposal

Greece Appeals For More Loans Before Proposal
Greece Prime Minister Alexis Tsipras Joanna / Flickr CC BY 2.0

Days after the Greeks had voted no to a proposed bailout, Greece Prime Minister Alexis Tsipras has recently addressed the European Parliament ahead of submitting the country’s full proposal. Among the requests is a new loan.


Tsipras began his statement by reminding everyone of the conscious choice that majority of the Greeks had made during the recent votes.

He said,  I find myself among you, just a few days following the strong verdict of the Greek people, following our decision to allow them to express their will, to directly decide, to adopt a stance and to actively take part in the negotiation regarding their future. Only a few days after their strong verdict instructing us to strengthen our efforts to achieve a socially just and financially sustainable solution to the Greek problem–without the mistakes of the past that condemned the Greek economy, and without the perpetual and hopeless austerity that has trapped the economy into a recessionary vicious cycle, and society in a long-lasting and deep depression. The Greek people made a brave choice, under unprecedented pressures, with the banks being closed, with the majority of the media attempting to terrorize people that a NO vote would lead to a rupture with Europe.”

Moreover, Tsipras personally pointed out that while rescue programs for Greece have been in place for the last five years, the prime minister himself only “came to power about five months ago.” And while he is willing to take full responsibility for what has been happening the past five months, he also believes that the difficult position Greece finds itself in today “is not the result of choices made in the last five months, but in the five years of implementing programs that did not end the crisis.”

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So instead, Tsipras is seeking for a new agreement with its European partners, one that he believes “will lead to a definitive end to the crisis.”

As part of the new agreement, the prime minister has said that Greece’s new proposal includes “a request for adequate coverage of the country’s medium-term financing needs, with a strong and front-loaded growth program.” He believes that focusing on the country’s growth will help bring the crisis to an end. Moreover, he has stressed the importance of dealing with Greece’s unemployment problem as well as encouraging entrepreneurship.

Following this, The Telegraph has learned that Jeroen Dijsselbloem – Chairperson of the European Stability Mechanism (ESM) Board of Governors – had sent out a letter to the European Commission and European Central Bank with regard to Greece’s “request for stability support” that is “in the form of a loan.”

Furthermore, the said basis of the decision whether the said support will be granted to Greece will be specific articles from the ESM Treaty and ESM Guideline on Loans. If granted, the support will reportedly be for three years.

Moreover, Reuters reports International Monetary Fund (IMF) Chief Christine Lagarde believes that, “Greece is in a situation of acute crisis, which needs to be addressed seriously and promptly.” However, while she reemphasized that Greece is in need of some major debt restructuring, Germany is not really keen on the idea. Meanwhile, the Greek government has also said stated that the banks will continue to remain closed until July 13. Moreover, ATM withdrawal limit remains at €60 per day.

At the same time, New York Times reports that some Greeks have been doing significant panic buying, using their debit cards to purchase items that would be of value during times of crisis. These include appliances and jewelry. Meanwhile, The Wall Street Journal also reports that parents with children have also been buying as much formula and basic medication as they can.