German Government Denies Knowledge of Bundesbank Paper on Greece

The German Finance Ministry dismissed a report that Europe may need to provide more aid for Greece as soon as this year, saying that the Greek government is making good progress in meeting the terms of its bailout.

Der Spiegel magazine reported in this week’s edition that Germany’s Bundesbank said in an internal document sent to the Finance Ministry that Europe will probably have to agree on new aid program for Greece by the beginning of 2014 at the latest. Risks to the current program remain “extraordinarily high,” the Bundesbank said, according to Spiegel.

“It’s extremely hard to say 13 days after the latest aid tranche was paid out what will or won’t happen in the future,” Martin Kotthaus, Finance Ministry spokesman, told reporters at a regular government press conference in Berlin today. He said he was unaware of the Bundesbank document referred to in the report.

The group of euro region finance ministers said in December that it will assess whether the program terms were fulfilled and whether Greece has a primary surplus in 2014, Kotthaus said. “If we establish that more money is needed, then we’ll talk about it, see what’s to do, what’s necessary,” he said. “One thing is clear, a second debt writedown is ruled out.”

Before it's here, it's on the Bloomberg Terminal.
LEARN MORE