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Why disbursement of bailout money alone won’t solve Greece’s problems?

Disbursing the last tranche of the current bailout program worth €7.2 billion will not solve the problems of Greece.

Reason is simple?

  • Total due by Greece in 2015, far exceeds the bailout amount, which is around €26 billion. Some of this due Greece has already cleared, however still major chunk of money remains.

  • Greece's debt burden, which now stands close to € 300 billion or 175% of GDP will not subside easily, however compared to this year burden is lower over the next years.

Greece's still due in 2015 -

  • € 0.2 billion towards IMF on May 1st
  • € 1.4 billion towards treasury holders on May 8th
  • € 0.8 billion towards IMF on May 12th
  • € 1.4 billion towards treasury holders on May 15th

  • € 0.3 billion towards IMF on June 5th
  • € 3.9 billion towards IMF and treasury holders on June 12th
  • € 0.6 billion towards IMF on June 16th
  • € 1.9 billion towards IMF and treasury holders on June 19th

  • € 2 billion towards treasury bill holders on July 10th
  • € 0.5 billion towards IMF on July 13th
  • € 1billion towards treasury holders on July 17th
  • € 3.5 billion due towards ECB on July 20th

  • € 1 billion towards treasury holders on August 7th
  • € 3.2 billion towards ECB on August 20th

  • € 2.9 billion due towards IMF and treasury holders in September.
  • € 1.9 billion due towards IMF and treasury holders in October.
  • € 1.2 billion due towards IMF in December.

Options are truly limited for Greece, either continue reform or leave Euro zone in a disorderly fashion.

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