Greek Short-Term Debt Relief in Jeopardy as Bailout Stalls

  • Europe’s stability fund reacts to government spending
  • Dijsselbloem aide says actions ‘not in line’ with accords

QuickTake: Greece's Financial Odyssey

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Hopes for a quick resolution to Greece’s bailout review faded after Europe’s stability fund froze short-term debt relief measures that would have eased the nation’s payment obligations.

Following an announcement by Greek Prime Minister Alexis Tsipras that he will spend more on pensions and sales-tax relief, the European Stability Mechanism’s governing bodies put their short-term debt relief decisions for Greece temporarily on hold, a spokesman for the euro area’s crisis fund said in an e-mail on Wednesday. The spokesman asked not to be named in line with policy.