Saturday October 25, 2014 Search
Weather | Athens
19o C
12o C
News
Business
Comment
Life
Sports
Community
Survival Guide
Greek Edition
Eurogroup agrees release of next loan tranche for Greece [update]

By Nick Malkoutzis

BRUSSELS - Eurozone finance ministers agreed in Brussels on Thursday to immediately disburse 34.3 billion euros in bailout funds for Greece.

Of this, 16 billion euros will go towards bank recapitalization, 7 billion for budgetary financing and 11.3 billion to finance Greece's bond buyback program, which was completed this week.

European Union Economic and Monetary Affairs Commissioner Olli Rehn said that the decision was a definitive response to those who believed Greece would leave the euro.

“The Cassandras have been proved wrong,” he said. “They have been proved wrong by the commitment shown by Greece and the eurozone.”

The Eurogroup’s decision came after Greece completed a bond buyback of its government debt, worth just over 31 billion euros and which will lead to public debt being reduced by more than 20 billion euros.

The International Monetary Fund had insisted on the scheme as part of program to put Greek debt on a sustainable path, which would see it reach 124 percent of GDP by 2020.

The Fund threatened to withdraw further funding if the buyback was not successful.

IMF managing director Christine Lagarde took part in Thursday’s talks via teleconference.

Eurogroup chief Jean-Claude Juncker insisted that the IMF would stay on board with the Greek program even though the cost of the buyback was 1.2 billion euros higher than expected and would reduce debt by 9.5 percent rather than 11 percent of GDP.

“The IMF will take part in the program,” Juncker said at a news conference. He added that it “was not certain” that additional measures would be needed to bring Greece’s debt down to 124 percent by 2020.

Rehn pointed towards changes in co-financing rules for EU structural funds could bridge the gap. He said the calculations would be made early next year.

As a result of Thursday’s decision, which also came after Greece agreed to a new round of austerity measures and structural reforms, Athens will receive a total of 49.1 billion euros by the end of the first quarter of 2013.

“The disbursement will be made in several tranches,” the Eurogroup said in a statement. “34.3 billion euros will be paid out to Greece in the following days. The remaining amount will be disbursed in the first quarter of 2013. First, a further amount to cover bank recapitalization and resolution costs will be paid out in January. Second, funds to cover budgetary financing will be disbursed in three sub-tranches, linked to implementation of specific memorandum of understanding (MoU) milestones to be agreed by the troika.”

“The disbursement today will allow liquidity to return to Greece,” said Rehn. “It will be essential to retain the tempo of reforms in Greece in the coming months, including tax reform and the fight against tax evasion.”

Prime Minister Antonis Samaras and Finance Minister Yannis Stournaras are due to hold a news conference in Brussels on Thursday afternoon to assess the Eurogroup’s decision.

LINK: Exclusive Olli Rehn interview to Kathimerini journalist Nikos Chrysoloras immediately after the Eurogroup meeting.

 

ekathimerini.com , Thursday December 13, 2012 (14:06)  
Athens, Nicosia satisfied by EU leaders stance toward Ankara
Suspended policeman chief suspect in cousins murder
No decisions yet on Greek bailout, says Samaras
Prescription fines since 2012 reach 2 bln, says minister
TAIPED waits for green light from Eurostat
Eurostat has frozen the securitization of properties that the Hellenic Republic Asset Development Fund (TAIPED) had been planning. The project, drafted to bring some 400 million euros into t...
Trade deficit shrinks on big drop in imports
Greeces trade deficit shrank 29.5 percent year-on-year in August as a result of the considerable 16.3 percent decline in imports, Hellenic Statistical Authority figures revealed on Friday. ...
Inside Business
BASKETBALL
A win is a win is a win for Olympiakos
A bad Olympiakos defeated a worse Laboral Kutxa 63-57 to make it two out of two in the Euroleague on Friday. In a game where the two teams had an overall field goal rate of about one in thre...
SOCCER
Panathinaikos snatches point at Eindhoven
Panathinaikos offered its fans a glimpse of its glorious past in European competitions snatching a draw at PSV Eindhoven, on an otherwise bad night for Greek soccer in the Europa League, as ...
Inside Sports
COMMENTARY
Tension for tensions sake?
It is evident that Turkish President Recep Tayyip Erdogan feeds off tension. He would barely have achieved as much as he has and prevailed if he had not been so keen to confront a series...
EDITORIAL
Testing ground
The Regional Authority of Attica is a good testing ground for politicians who appear to thrive on accusations to prove whether they can actually solve major problems of a practical nature. T...
Inside Comment
SPONSORED LINK: FinanzNachrichten.de
SPONSORED LINK: BestPrice.gr
RECENT NEWS
1. A win is a win is a win for Olympiakos
2. TAIPED waits for green light from Eurostat
3. Trade deficit shrinks on big drop in imports
4. SMEs unable to claim subsidies
5. Taxes kept growing in second quarter
6. Thessaloniki Port expects 2014 to be record year
more news
Today
This Week
1. Woman killed in tram accident in Floisvo, south of Athens
2. Clocks to go back 1 hour on Sunday
3. Venizelos slams Turkey for 'flagrant violation of international law' off Cyprus
4. ECB vies for third time lucky in European stress tests
5. Cyprus GDP upgrade seen as boosting bailout exit plans
6. ECB bank assessment to show 6-billion-euro capital gap, Citi says
Today
This Week
1. The past, present and future of the Greek debt crisis
2. Greeces closed society is central to its current malaise
3. Greece must stick to reforms, says Schaeuble
4. At least 11 banks to fail European stress tests, three in Greece, report says
5. Cyprus to block Turkey's EU talks after EEZ violation
6. Stop moaning and get in the game
Find us ...
... on
Twitter
... on Facebook
About us  |  Subscriptions  |  Advertising  |  Contact us  |  Athens Plus  |  RSS  |   
Copyright 2014, H KAΘHMEPINH All Rights Reserved.