EU’s Dombrovskis: Greece May Need Third Rescue

Greece could need a third bailout deal when its current program expires in June because markets may still not be prepared to lend to its government, even with a euro-area credit line, European Commission Vice President Valdis Dombrovskis said.

Prime Minister Alexis Tsipras, elected in January, said Friday his government won’t need another bailout. Greece has received pledges of 240 billion euros ($269 billion) in aid from its two rescue packages, and Tsipras’s government must meet creditor demands to tap remaining funds.

Speculation over whether Greece would need a third bailout has been swirling for a year or more — German Finance Minister Wolfgang Schaeuble said in August 2013 that a new aid program would be needed to help Greece meet its debt obligations — and estimates of the country’s needs have ranged from 12 billion to 50 billion euros.

Bloomberg

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