Greek debt reached 176% of GDP

German Ministry of Finance issued a document stating the amount of the third loan for Greece. Thus, the amount of funds range from €10 billion to €20 billion, writes The Guardian.

Germany is prepared to provide financial assistance to Greece on condition that the country is suffering from debts will introduce austerity measures. Currently there is a record unemployment and a sharp decline in GDP in Greece.

All the money that Germany would send to Greece will be accompanied by the commentary of Finance Minister, Wolfgang Schäuble. He noted that despite the record in the history of the world market infusion in Greece, the country is still the weakest in the euro area.

Last week, the prime ministers of the euro area held the negotiations. Policy discussions are focused on the need to cover the high deficit of Greece, as well as the reluctance of the government to reform the country's economy. Lack of development has become a major point of negotiation between Greece and its three creditors - the International Monetary Fund, European Central Bank and the European Union.

According to the «Triplet», which supports the economy of Greece since 2010, the country's budget deficit over the next two years amounted to € 15 billion, the state debt is equal to 176% of GDP, compared with 120% at the beginning of the crisis. This situation in Greece is not only impedes the foreign investment, but also causes serious problems in the economy.

Some experts believe that financial aid is ridiculous at the moment. The IMF argued that there is no way to cut spending or raise taxes in Greece because of the depletion of the economy. The overall unemployment rate is 28 %, and youth employment rate is 60 %.

IMF insists on debt relief for Greece as debt can repress the economy.