The Latvian meeting is seen as an opportunity for Greece to demonstrate that they are ready to go along with the economic reforms to which they agreed in order to procure a 2012 aid package. If they are unwilling to bend on meeting the economic reform terms, the final portions of the 2012 package will not be paid. This sets up the possibility of the Greek Government being broke as early as May.
All concerned agree that the situation is troubling. Vitas Vasiliauskas, a member of the Governing Council said in an interview on April 18,
“The situation in Greece means that we should have a limit until summer for ELA. Everyone understands what ELA means; it’s a temporary measure to give the banks liquidity.”
Vasiliauskas’ statement are similar to the sentiments coming from France, Germany the U.S. and many other countries.