The possibility of bankruptcy looms in Greece's shadows as German schism to a new Greek bailout develops. German,Finnish and Dutch voices were calling for the March 20 deadline to release the funds to Greece. Some Greeks see this as an interference into its democracy as elections are held in April and the Eurozone want parties that agreed to the bailout to prevail.
The leaders who made these calls wanted the Greek election to take place before finalizing the release of the 14.2 Billion euros Greece needs to pay its creditors.
Another Greek party leader Antonis Samaras of the New Democracy party has agreed to the new austerity measures. The release of the funds by March 20 was conditioned on Greek party leaders accepting the terms of the bailout.
Greece capitulated to the tough line stance of the EU,IMF and ECB by agreeing to more austerity. The measures were agreed to so that Greece can obtain the next trancheof the second bailout.
The plan to postpone the payment of the 14.5Billion euros will make it less likely that the private bondholders would want to agree to a haircut on its bonds if they are not assured of EU participation.
Many analysts believe that Greece will ultimately default,because even after 8 years of austerity Greece debt to GDP ratio would be 120% worse off than Italy is today
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