Added by Monique Robinson on September 20, 2010
Officials from the European Union (EU), European Centrak Bank (ECB) and International Monetary Fund (IMF) together with Greek finance minister George Papaconstantinou will be on a two days road-show this week and meet with investors in Paris, London and Frankfurt. The road-show is meant to convince investors that Greece has a true commitment to meet the set targets for debt reduction.
Reuters reported that a sourced connected to the road-show said that if, after the given three years, Greece were to fully meet the demands imposed by the EU and the IMF to reduce its deficit and still fail to convince the markets, then the international support would not be retracted: ‘In that situation we would not walk away from Greece, we would not abandon them.’
Although the same source mentioned above stated that the international officials did not say anything about a possible new program or a program extension, the press in Greece has already started speculating that the road-show which will be taking place next week might actually lead to an extension of the current support plan. Back in May, 2010, the IMF and the EU have saved Greece from bankruptcy. This was done by granting the country a bailout amounting EUR110bn ($143,5bn) for three years in exchange for harsh austerity cuts.