67922
Eurozone Approves $9.7 Billion for Greece
Eurozone Approves $9.7 Billion for Greece

Eurozone Approves $9.7 Billion for Greece

Eurozone Approves $9.7 Billion for Greece

The eurozone approved the latest €8.5 billion ($9.7 billion) bailout disbursement to Greece, just in time for Athens to meet major debt repayments and avert default.
“The Board of Directors of the European Stability Mechanism today (Friday) approved the third tranche of €8.5 billion of ESM financial assistance to Greece,” the eurozone bailout fund said in a statement, MENAFN reported.
The 19 eurozone finance ministers struck a long-delayed cash-for-reforms deal with Greece last month to unlock the badly needed rescue funds but the payout was delayed by a legal snag. The deal was meant to avert a repeat of the summer of 2015 when Greece spectacularly defaulted on an IMF loan and allow Athens to meet €7 billion of debt repayments due in July.
But Spain last month threatened to block the disbursement, angry that Athens has failed to drop a legal case against European experts, including some of its officials, who had worked on the Greek privatization program.
Greece’s supreme court on Tuesday dismissed the case, opening the way for Friday’s payment. ESM Managing Director Klaus Regling said: “Today’s decision ... shows that Greece has completed the reforms required at this stage.”
“The government should continue on this path to rebuild a competitive economy and regain investors’ trust,” Regling said in the statement.
EU Economic Affairs Commissioner Pierre Moscovici, a former French finance and economy minister, said all parties had worked together to get to this “new positive stage”. “Greece’s partners recognize the unbelievable efforts made by the Greek people to stabilize the economy. This payment opens a new chapter for Greece whose key words must be jobs, investment and recovery for the benefit of all,” he said.
Greece’s third bailout since 2015 is set to run until 2018, with Athens hoping to win significant debt relief at the program’s conclusion.
In return for aid, successive governments have had to adopt stinging and hugely unpopular austerity measures in an effort to balance the public finances burdened by a mountain of debt.
The fund is expected pay out a total of €7.7 billion on Monday. Some €6.9 billion will help Greece to meet its debt repayment commitment, which amounts to around €7 billion this month, while €800 million will be used to clear arrears.
The second part, €800 million, will be paid in September if the Greek government has made “significant progress on arrears clearance” with its own funds, the ESM said in a statement.

Short URL : https://goo.gl/mwH9rJ
  1. https://goo.gl/RYCmpQ
  • https://goo.gl/F9n6Jz
  • https://goo.gl/4cxBw9
  • https://goo.gl/9FkFmZ
  • https://goo.gl/1QYDvk

You can also read ...

Google and Walmart are set to start a partnership through which thousands of Walmart products are offered through the Google Home voice-controlled speaker.
Lowe’s Inc the number-two US home improvement retailer,...
Lowe’s Q2 Profit Jumps 21.6%
Lowe’s Inc the number-two US home improvement retailer,...
There were rallies on Wall Street overnight due to US President Donald Trump’s comments.
Asian indexes put in mixed performances on Wednesday following...
Blackstone Explores $7b IPO of Gates Global
Private equity firm Blackstone Group LP is exploring an...
Italian 10-year yields climbed 6 basis points to  a 3-1/2-week high at 2.17%
Eurozone bond yields rose on Wednesday, with Italian yields...
Toshiba, Western Digital Start Talks on Memory Sale
Toshiba has begun negotiations with business partner Western...
China Court Awards US Co. $1.5m in Court Case
A Chinese court has ordered three domestic shoemakers to pay...
Identity Fraud Soars to New Highs in UK
Cifas, the UK’s leading fraud prevention service, has released...

Add new comment

Read our comment policy before posting your viewpoints

Image CAPTCHA
Enter the characters shown in the image.

Trending

Googleplus