EU Expected to Tide Greece Past Bill Redemption

Delay in next installment of aid runs up against 5 bln euros' worth of maturing Greek debt.

European governments will find a way of tiding Greece past next week’s bill redemption as the pieces of an updated aid package take longer than planned to fall into place, a European official said.

While finance ministers on Nov. 12 are unlikely to sign off on 31.5 billion euros ($40 billion) of fresh loans, the result won’t be an “accidental default” for Greece when 5 billion euros of bills mature on Nov. 16, the official told reporters in Brussels today on condition of anonymity.

Two-Year Extension

Samaras has pressed for two extra years, until 2016, for Greece to meet deficit-reduction targets imposed by European governments and the International Monetary Fund. Creditors’ calculations are assuming a two-year extension, the Brussels official said, while declining to say whether it will be approved.

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