The request made by Greece proposing that the EU Loan should be extended for six months was rejected by Germany. Wolfgang Schaeuble speaking for the German finance minister said “The letter from Athens is not a substantial proposal for a solution”

 

He made it clear that the letter fell short of conditions given at the Eurogroup meeting held on Monday. Wolfgang Schaeuble said “In truth it aims at bridge financing, without meeting the requirements of the program”

 

Greece is seriously indebted and its European Union loan is at the verge of expiration, hence this extension request was sent asking for a way to eliminate rigorous measures.

 

This is not the first time that Germany has rejected a proposed loan extension made by Greece. The Germans believe that Greece should stick with the existing arrangement for the loan. It is viewed that giving them more time will affect reforms that Athens had agreed to.

 

Some conditions were given to Greece by the minsters of finance from the European zone. This was at the Eurogroup meeting held onMonday. In that meeting a five criteria directive was laid out as the only way financial assistance can be given to Greece. The most important criteria on which Germany stands to reject the loan extension is the fact that Greece former reforms should remain unaltered.

 

Athens was also required to pledge that a repayment will be made to all its creditors at the Eurozone meeting this Monday. The EU went further to insist that Greece should not undertake any restructuring that would have negative impact on its public funding.

 

However, the Chairman of European Group, Jeroen Dijsselbloem has tweeted about the meeting of all the ministers of finance from the Eurozone. His tweet indicated that the meeting will be on Friday to review the loan extension request made by Greece.