Creditors fight creditors over the bail-out of Greece

SISYPHUS was condemned to push a boulder uphill only to watch it roll down again. Yet an eternity of boulder-shoving seems purposeful next to the unending labour of keeping Greece in the euro zone and out of default. It is nearly seven years since the first Greek bail-out. A second rescue package soon followed. In 2015 Greece came close to dropping out of the euro before its newish prime minister, Alexis Tsipras, buckled down to the task of pruning the budget as part of a third bail-out. Now a Greek disaster is looming all over again.This time the source of the trouble is a row among the two main creditors over how to assess Greece's public debt (see article). The stand-off threatens a payment to Greece from the euro zone's bail-out fund, the European Stability Mechanism (ESM), which would redeem '6.3bn ($6.7bn) of bonds that are due in July. If the money is withheld, Greece will be in default. Sooner or later, Grexit would be hard to avoid.Hopes of an agreement before...Continue reading
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