World Economy

Greece to Receive More Bailout Cash

Greece to Receive More Bailout Cash
Greece to Receive More Bailout Cash

Greece reached an agreement with European creditors Tuesday on economic measures it needs to introduce so it can get its next batch of bailout money, including a €10 billion ($10.7 billion) cash injection for its crippled banks.

Though the Greek government had already made a number of the reforms required by its third international bailout, it balked at a few, notably a law making it easier to evict people in arrears on their mortgages and reduce banks’ bad loans, AP reported.

But Pierre Moscovici, the European Union’s top economy and finance official, said, without providing details, that Greece and the creditors had reached a deal on all outstanding issues.

“I am happy to confirm that agreement has been reached on the remaining measures needed to complete the first set of milestones,” he told a press briefing in Brussels.

“We expect finalization of the process to take place shortly following the swift adoption of necessary legislation by the Greek Parliament on Thursday,” he added.

Once Greek lawmakers approve the measures, Moscovici said the institutions that oversee Greece’s bailout program will assess Athens’ compliance, paving the way for the cash disbursements.

Greece is due €2 billion ($2.2 billion) in loans as well as €10 billion for its banks, which are reeling from limits on money transfers and withdrawals and another likely recession.

Healing the banks is perhaps the most pressing concern for the Greek government. They remain badly hobbled by the crisis that played out over the country’s euro future in the first half of the year. They need cash quickly so they can start operating normally. Currently, concerns over the banks’ health are so great that the government is still limiting cash withdrawals to €60 a day or €420 a week.

Last month, the European Central Bank said Greece’s banks need €14.4 billion in fresh money to get back on their feet and resume normal business. That’s actually lower than many had anticipated. Up to €25 billion is potentially available from the bailout to recapitalize the banks.

“This is a good day,” said Moscovici.