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Greece deal faces euro zone scrutiny

Friday, August 14, 2015 - 01:43

Euro zone finance ministers discuss Greece's third bailout deal in Brussels, days before Greece is due to pay a 3.2 billion euro debt payment to the ECB. Ivor Bennett reports on some of the remaining obstacles.

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Trust - until now, one of the biggest barriers between Greece and its creditors. But finally, it seems, it is now there. Eurogroup president Jeroen Dijsselbloem welcoming the Greek parliament's approval of a new bailout deal. (SOUNDBITE) (Dutch) EUROGROUP PRESIDENT, JEROEN DIJSSELBLOEM, SAYING: "What I can determine is that talks with Greece were much more constructive than previously with any of the Greek governments, there's now a stronger and more concrete package of measures and that creates trust." Meeting in Brussels, euro zone finance ministers have to ratify the 85-billion-euro package BEFORE any funds can be released. From Germany's Wolfgang Schaeuble, at least, the initial signs were positive. (SOUNDBITE) (German) GERMAN FINANCE MINISTER WOLFGANG SCHAEUBLE SAYING: "I am very confident that we will find a solution today. The preparations have gone well. We will have to scrutinise to what extent the declaration of the summit have been implemented. There are some differences." But it's those differences that could prove difficult to overcome. Germany says it will only agree to the deal if the IMF is on board too. But the IMF won't get involved without a commitment to debt relief. Something Germany won't consider just yet. Jan Randolph from IHS Global Insight. SOUNDBITE (English) JAN RANDOLPH, DIRECTOR OF SOVEREIGN RISK, IHS GLOBAL INSIGHT, SAYING: "I think there is room for compromise here. They could for example agree on quantative targets, like growth targets, and link that directly to debt relief. I think there is room for compromise but I think they're going to have to talk it through." That is at least something they are used to. Along with having a plan B. In this case, bridge financing for Greece to meet next week's payment to the ECB. With Schaeuble revealing it has been prepared in case an agreement can't be reached.

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Greece deal faces euro zone scrutiny

Friday, August 14, 2015 - 01:43