Skip to main content

Greek minister: Country may need extra 10 billion euros

By Irene Chapple, CNN
updated 11:42 AM EDT, Mon August 26, 2013
A protestor holding a banner against the Greek Government takes part in a demonstration on July 15, 2013 in Athens.
A protestor holding a banner against the Greek Government takes part in a demonstration on July 15, 2013 in Athens.
  • Greece may need to tap its eurozone partners for an extra 10 billion euros in funding
  • The country's finance minister said a new package would come without new conditions
  • Yannis Stournaras' comments come days after German's finance minister said the country would need help
  • However, Germany has an election on September 22 and any decision will likely be made after that

(CNN) -- Greece may need to tap its eurozone partners for an extra 10 billion euros in funding as it faces up to a cash shortfall, the country's finance minister has said.

Yannis Stournaras said "if Greece needs additional support that will be of 10 billion euros, which is a very small amount compared with the previous memorandums." The comments were in an interview with Greek newspaper Proto Thema Sunday and reported by press agency AMNA.

A support package would come "without new conditions," Stournaras said, as targets were already in place until 2016. Further, there would be no haircut on Greek debt, he said.

The minister said the country did not yet have the two conditions to return to the bond markets -- a primary surplus and two consecutive trimesters of growth -- but would know by year's end if that had been achieved or could be next year.

Europe still recovering from recession
Greek unemployment hits record 27.6%
Brutal reality of immigrant life

Stournaras' comments follow those made by German Finance Minister Wolfgang Schaeuble last week, in which he said Greece would require "another program" of assistance to help it with debt financing costs. Greece has already had bailouts worth 240 billion euros.

A Germany finance ministry spokesman said Schaeuble was referring to a eurozone pledge in late 2012 to consider "further measures and assistance" for Greece to help it achieve debt targets agreed to as part of the existing bailout program, which is due to end in 2016.

According to a note from Societe Generale economists, Schaeuble had recognized the obvious, "namely that Greece will need yet another assistance package."

However, German Chancellor Angela Merkel "will want to keep discussions at bay until after the German election on 22 September," economist Michala Marcussen wrote.

The International Monetary Fund had already recognized a funding gap of around 11 billion euros, Marcussen wrote, and more aid will be "top of the agenda," after the election.

Further, the note added, Greece "in our opinion will need official sector debt forgiveness. Without this, we believe the economy will continue to struggle under the debt mountain, condemned to weak growth."

Greece's struggles come as Europe's recovery appears to be gaining traction thanks to a revival in activity in Germany, the region's biggest economy.

The 17-nation eurozone emerged from its longest ever recession, growing 0.3% in the second quarter after 18 months of contraction.

However, risks remain. France, the eurozone's second biggest economy, saw private sector output fall faster in August than July, with both services and manufacturing taking a hit.

Unemployment rates have steadied but remain at record highs and will continue to weigh on consumer spending. It could also cause political instability in southern European states such as Greece and Spain.

Greece, along with three other eurozone countries -- Portugal, Ireland and Cyprus -- remain dependent on rescue loans from the EU and International Monetary Fund.

Part of complete coverage on
updated 3:43 PM EDT, Tue August 27, 2013
German Finance Minister Wolfgang Schaeuble says the eurozone's problems are not solved, but "we are in a much better shape than we used to be some years ago."
updated 11:28 AM EDT, Wed September 4, 2013
The G20 is held in Russia but, amid disagreements over Syria, can anything be done? John Defterios investigates.
updated 11:02 AM EDT, Wed July 10, 2013
Summer could not have come soon enough for Lloret de Mar, a tourist resort north of Barcelona. Despite the country's troubles, it's partying.
updated 1:50 PM EDT, Fri June 7, 2013
The euro club has suffered major shockwaves but its newest member has emerged as an economic star. What;s behind Estonia's success?
updated 9:23 AM EDT, Wed May 29, 2013
The global recovery has two speeds: That of the stimulus-fed U.S. and that of the austerity-starved eurozone, according to a new report.
updated 9:26 AM EDT, Tue May 14, 2013
The flags of the countries which make up the European Union, outside the European Parliament in Strasbourg, France.
The "rich man's club" of Europe faces economic decay as it struggles to absorb Europe's "poor people", according to economic experts.
updated 10:56 PM EDT, Sun May 26, 2013
Europe's competitiveness is threatened as manufacturing companies scrambling to find enough skilled engineers.
updated 11:02 AM EDT, Wed July 10, 2013
Spain's economic crisis is in its sixth straight year yet tourism, worth 11% of GDP, is holding its own, one of the few bright spots on a bleak horizon.
updated 6:44 AM EDT, Thu May 2, 2013
As European financial markets close for the spring celebration of May Day, protesters across Europe and beyond have taken to the streets to demonstrate.
updated 8:10 AM EDT, Fri April 26, 2013
As Croatia prepares to enter the 27-nation European Union, the country's Prime Minister says Italy must return to being the "powerhouse of Europe."
updated 12:56 PM EDT, Thu April 25, 2013
Spain's unemployment rate rose to a record high of 27.2% in the first quarter of 2013, the Spanish National Institute of Statistics said Thursday.
updated 9:55 AM EDT, Mon March 25, 2013
The financial uncertainty in Cyprus is generating images of long lines at ATM machines and anti-European Union protests.
updated 2:15 PM EDT, Mon March 25, 2013
Cyprus will "step up efforts in areas of fiscal consolidation." Where have we heard that before? Oh yes. Greece.
updated 9:39 PM EDT, Fri March 22, 2013
The Cyprus debt crisis is being felt by the banks but also by the people who work at them. Nick Paton Walsh reports.
updated 8:10 PM EDT, Thu March 21, 2013
CNN's Nick Paton Walsh reports on a Russian hotel maid caught up in Cyprus' financial crisis.
updated 12:08 PM EDT, Mon March 18, 2013
Never underestimate the capacity of the Eurozone to shoot itself in both feet, says CNN's Richard Quest.
updated 11:03 AM EST, Thu February 21, 2013
Spain has seen hundreds of protests since the "Indignados" movement erupted in 2011, marches and sit-ins are now common sights in the capital.