Sources: Greek bailout funds couldn't arrive for weeks
Greece’s financial situation is extremely serious. Even if progress is made tonight, there is no hope of any fresh bailout cash being granted soon.
Our Europe editor Ian Traynor explains:
Eurozone sources said that under the formal new bailout proposal to be tabled on Wednesday, it would take several weeks before Greece could hope to receive any disbursements.
None of that money would be possible before July 20 when Greece has to pay the European Central Bank €3.5bn.
Any agreement on a programme from the permanent bailout fund, the European Stability Mechanism, would have to be medium-term and would come with “tight conditionality.”
Failure to repay the European Central Bank on July 20 could have very serious consequences; the ECB could respond by terminating the emergency liquidity assistance provided to Greek banks (which is already capped, of course)
