Monday November 24, 2014 Search
Weather | Athens
14o C
10o 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)  
Crucial talks with troika in Paris
Papandreou proposal sparks war of words inside PASOK
Biden briefs Anastasiades about talks in Istanbul
Prosecutor seeks trial for 64 in Siemens bribery scandal
Traders eye developments with creditors
The last week of November began with minor losses for the Greek bourses benchmark as traders are anticipating developments regarding a pending review of the Greek programs progress by the ...
ILO calls for urgent action in Greece to create jobs, tackle social problems
The International Labor Organization (ILO) called on Monday for a change in policy in Greece to boost employment and prevent a social crisis. In its Productive Jobs for Greece study, which...
Inside Business
BASKETBALL
Olympiakos ends PAOKs unbeaten run in Basket League
Olympiakos put an end to PAOKs unbeaten run in the Basket League with an emphatic win at the Peace and Friendship Stadium, leaving Panathinaikos as the only team with a perfect record so fa...
INTERVIEW
Tokyo hopes to change the world
The 2020 Summer Olympic and Paralympic Games in Tokyo will serve as a springboard for the rebuilding of Japans image and economy following the triple blow of the earthquake, tsunami and nuc...
Inside Sports
COMMENTARY
Extremism from a bygone era
There are times when we seem to be overcome by self-destructive madness. I hear various commentators and politicians speaking in extreme terms of a junta, of defections, gallows, collaborato...
EDITORIAL
No call for more games
Psychological warfare has been a part of the negotiations between the troika and Athens from the very start of the crisis. But the situation is much different now and troika decision-makers ...
Inside Comment
SPONSORED LINK: FinanzNachrichten.de
SPONSORED LINK: BestPrice.gr
RECENT NEWS
1. Crucial talks with troika in Paris
2. Papandreou proposal sparks war of words inside PASOK
3. Biden briefs Anastasiades about talks in Istanbul
4. Prosecutor seeks trial for 64 in Siemens bribery scandal
5. Thessaloniki man sentenced to 20 years for German school hostage crisis
6. Rifle used in Piraeus shooting not connected to previous attacks
more news
Today
This Week
1. Scientists expand excavation of ancient Amphipolis
2. Greek officials to meek troika chiefs in Paris to break review stalemate
3. Police seek to name man who opened fire with AK47 at Piraeus bar
4. EU said to plan 21 billion-euro risk-sharing fund for investment
5. Biden informs Anastasiades about content of talks with Erdogan
6. Countdown to missed opportunity for EU economy
Today
This Week
1. Double quake on Atalanti fault line rattles Greek capital [Update]
2. Biden heads to Istanbul amid tension over Cyprus EEZ violation
3. Anti-junta uprising anniversary to be marked amid tight security
4. Every age has its collaborators
5. Give Greece a chance
6. Carlsberg takes control of Greek brewer Olympic Brewery [Update]
Find us ...
... on
Twitter
... on Facebook
About us  |  Subscriptions  |  Advertising  |  Contact us  |  Athens Plus  |  RSS  |   
Copyright 2014, H KAΘHMEPINH All Rights Reserved.