BUSINESS

Juncker says conditions in place for new Greek bailout

The head of the Eurogroup, Jean-Claude Juncker, says the eurozone is in a position to grant Greece final approval for its new bailout following the completion of its debt restructuring scheme, or PSI.

?The eurogroup was encouraged by the high private sector participation in Greece's debt exchange offer, which will make a significant contribution to improve Greece's debt sustainability,? said Juncker in a statement.

The bondholders who took part in the swap will receive AAA-rated bonds backed by the eurozone?s crisis fund, the EFSF, in exchange for the notes that will undergo the haircut. Juncker said that this exchange would go ahead.

?Against this background, the disbursement of the euro area's contribution to the PSI operation in the form of EFSF bonds for the settlement of the Greek-law bonds as well as the accrued interest on the exchanged bonds can proceed as planned,? he said.

The Luxembourg prime minister added that everything is in place for the eurozone to approve the 130-billion-euro bailout for Greece.

?The Eurogroup considers that the necessary conditions are in place to launch the relevant national procedures required for the final approval of the euro area's contribution to the financing of the second Greek adjustment program,? he said.

?The Eurogroup looks forward to a significant contribution by the IMF to the financing of the new Greek program,? added Juncker.

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