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Greece will need third bailout package: Spain

Spain’s Economy Minister Luis de Guindos (L), arrives for an emergency Eurogroup finance ministers meeting at the European Council in Brussels, Belgium, February 20, 2015. © AFP

The Spanish economy minister says Greece will require a third bailout package amid skepticism over Athens’ ability to regain access to capital markets under its current loan deal with international creditors.

Luis de Guindos told an economic forum in the northeastern city of Barcelona on Wednesday that what happens next will be “fundamentally a third rescue” to help the Greek government cover its financing needs.

He further noted that "unfortunately it is not very likely" that Athens will be able to return to finance markets under its existing bailout program, adding, "If Greece cannot gain access to the markets between now and June... we must establish a new agreement with Greece."

Earlier this week, the Spanish minister announced that talks have begun on a third bailout package for Greece worth between USD 34-55 billion (€30-50 billion).

However, Simone Boitelle, spokeswoman for Eurogroup chairman, Jeroen Dijsselbloem, stressed that eurozone finance ministers will not be discussing any third aid program in their upcoming meeting.

Back in February, finance ministers from the eurozone had given the green light to the reforms submitted by Athens in exchange for a four-month extension of its bailout deal after a similar move by the European Commission.

Greece received two bailouts in 2010 and 2012 worth a total of €240 billion (USD272 billion) from the troika of international lenders - the European Central Bank (ECB), the International Monetary Fund and the European Union - following the 2009 economic crisis.

The government of Prime Minister Alexis Tsipras, whose leftist Syriza Party stormed to victory in January 25 elections, has tried to renegotiate the terms of the country’s bailout it received in return for imposing harsh austerity measures.

During his electoral campaign, Tsipras vowed to reconsider the austerity measures, which have caused mounting dissatisfaction in the country.

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