Ruth Mitchell

Next round of Greek bailout cash delayed by Eurozone

Finance ministers in the Eurozone have delayed deciding on whether to give Greece another round of bailout cash.

According to BBC reports, this news comes after Greece admitted it would not meet its targets to cut its deficit, resulting in mass stock market sell offs.

The Eurogroup need to release the 8 billion euro fund by mid-November, and the chairman of the group Jean-Claude Juncker has already admitted it will not allow Greece to default.

Finland has also negotiated a special agreement to receive collateral as security for its contribution to the European Financial Stability Fund. This was agreed after the Finns threatened to block the next round of Greek funding if it did not receive this agreement.

The 2011 Greek deficit is projected to be 8.5%, down 2% on 2010 but still short of the EU and IMF target, set at 7.6%.

IMF and EU inspectors are now in Athens to consider the Greek financial position before a further eurozone meeting on 13 October.

Some countries, including Germany, have been pushing to allow Greece to default. However, without further bailout money Greece would be forced to stop paying its debts, which could in turn have serious repercussions for the world economy.

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