Greece will require even more money by July, and you read it here first. Astute readers of Dareconomics knew in December that the troika’s numbers simply did not add up, and Greece would have a funding gap opening prior to German elections:
The 3rd Greek bailout was not designed to place Greek finances on a sustainable path; rather, the troika was primarily concerned with kicking the can down the road past German elections. Once Angie was safely seated in the Chancellor’s throne, she could return to the Bundestag with a request for more German money to throw down the Hellenic Hole.
The troika is placing the blame at the feet of the countries of the Eurozone who are refusing to rollover Greek debt after initially promising to do as part of the 3rd Bailout. This refusal to fund combined with the usual lack of privatization receipts and “surprise” shortfalls in government revenue means that the Greeks will require more money by the end of July. The question is how will they get it.
Merkel will not be able to request more money in the Bundestag, because a vote on more PIIGS giveaways will not be scheduled prior to elections in September. This leaves the ELA. As we predicted months ago in the link above, the Greeks will have to rely on ELA cash for a few months until after German elections. Will the IMF accept this fudge again?