Politico on Thursday reported that the leftist Greek government has requested “financial assistance” from the World Bank, an international funding organization best known for financing growth and development schemes in the Third World and emerging market economies.
The article, bylined by Bjarke Smith-Meyer, cites “people familiar with the situation”.
“Preliminary talks have taken place indeed with (the World Bank) but we cannot confirm official application,” was the quoted attributed to a government official in Athens.
The eyebrow-raising article comes amid resumed negotiations in Athens this week between the Greek government and its institutional creditors to finally conclude the now year-long delayed second review of the Greek program (third bailout).
“The government of Greece has asked the World Bank to provide technical and financial assistance to address pressing challenges including: long-term unemployment, economic competitiveness and growth and social protection … In accordance with World Bank procedures, any final decision on providing loans would be subject to approval by the bank’s board of executive directors,” was the quoted posted by Politico and attributed to a WB spokesperson.
No information was given as to whether the purported financial assistance would be funneled towards creating jobs in the private sector or if subsidized positions in Greece’s cavernous public sector is the goal of the leftist-populist rightist Greek government coalition.
The World Bank, nevertheless, declined to specify how much money the Tsipras government requested, Politico reported.
