snap election in September

Greek PM to resign, seek snap election in September

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Greek Prime Minister Alexis Tsipras will resign on Thursday to pave the way for early elections on Sept. 20, government officials said, hoping to quell a rebellion in his leftist Syriza party and seal support for a bailout program.

Tsipras's decision to return to the ballot box after seven bruising months in power deepens political uncertainty on the very day Greece began receiving funds under its third bailout program with foreign creditors.

But a snap election should allow Tsipras to capitalize on his popularity with Greek voters before the toughest parts of the program begin to bite, and may allow him to return to power in a stronger position without anti-bailout rebels in his radical left Syriza party to slow him down.

Greek two-year bond yields jumped 78 basis points to 12.15 percent, while Greek stocks closed down 3.5 percent.

"The aim is to hold elections on Sept. 20," a government source said after Tsipras held talks with his advisers. The leftist leader is expected to make a televised address at 8 p.m. local (1700 GMT).

Tsipras had long been expected to seek early elections in the autumn to consolidate his position after caving into the creditors' demands for more austerity and economic reform in return for 86 billion euros ($96 billion)in bailout loans.

origina post found herhttp://uk.reuters.com/article/2015/08/20/us-eurozone-greece-resignation-idUSKCN0QP1Q820150820