Tuesday September 2, 2014 Search
Weather | Athens
29o C
23o C
News
Business
Comment
Life
Sports
Community
Survival Guide
Greek Edition
Greece’s new loan payout signals optimism

Euro-area finance ministers blessed the next disbursement of emergency aid for Greece, highlighting the goodwill that led to the unblocking of loans last month for Prime Minister Antonis Samaras’s government.

At a meeting on Monday in Brussels, the euro finance chiefs gave the green light for the payout of 9.2 billion euros ($12.3 billion) to Greece this month. Of the funds, 7.2 billion euros in bonds are for the further recapitalization of Greek banks and 2 billion euros in cash are to cover the government’s budget needs.

The trouble-free payout of new loans for Greece indicates greater European political confidence in the ability of the government in Athens to press ahead with budget cuts and market- opening initiatives outlined in the nation’s international aid program. That in turn has helped lessen speculation that was rife last year about a possible Greek exit from the 17-nation single currency.

“We perceive a greater commitment to keep Greece in the currency union, if it complies with the program,” London-based Morgan Stanley analysts including Daniele Antonucci said in a report yesterday. “Many transitory support measures have already been extended, more will come.”

More time

The disbursement for January is part of a 49.1 billion-euro tranche that the euro area approved last month for Greece through March after revamping the nation’s second rescue. Policy makers gave the Samaras government two extra years until 2016 to meet budget-cutting targets. Europe split the whole tranche into sub-installments over four months to allow more oversight of Greece’s progress in curbing expenditure and overhauling the recession-hit economy.

“We noted with satisfaction that the milestones for January have been achieved,” Luxembourg Prime Minister Jean- Claude Juncker, who led the Brussels meeting of euro-area finance ministers, told reporters afterward.

Greece received 34.3 billion euros last month, including funds for banks. After the January disbursement, the country is due to get about 5.6 billion euros for budget obligations in two separate payments in February and March. The International Monetary Fund is contributing a separate amount to Greece of about 3 billion euros this quarter.

Two bailouts

These sums are part of a 130 billion-euro rescue package approved early last year after an initial 110 billion-euro bailout in 2010. The second rescue also included the biggest write-down of privately held debt.

The euro area’s rescue funds, the European Financial Stability Facility and the European Stability Mechanism, will probably clear aid payments to Greece, Spain and Portugal “in a week” as the final step in the disbursement, according to Klaus Regling, who heads the EFSF and the ESM.

Loans for Athens were frozen last June after Greek opposition grew to fiscal austerity that’s a condition for European and IMF aid. Greece held two elections in which anti- bailout parties gained and Samaras emerged as the head of a three-party coalition in favor of staying in the euro while seeking more time to meet targets for narrowing the budget deficit as the economy shrinks for the sixth year. [Bloomber]

ekathimerini.com , Tuesday Jan 22, 2013 (10:07)  
Tourism targets rise ever higher
Horse race betting hurdle removed for OPAP
Revised GDP data confirm that Greek growth is near
Measures to reduce unemployment
Education minister calls for probe into predecessor´s reform plan
Following reports that a plan to reform the tertiary education sector launched in the spring of 2013 failed to lead to millions of euros in savings, Education Minister Andreas Loverdos on Mo...
Anti-racism bill goes back to Parliament
An anti-racism bill, foreseeing stiffer penalties for individuals and political parties that engage in racism or incite racist violence, is to be debated in Parliament on Tuesday following m...
Inside News
BASKETBALL
Greek hoopsters go top of their group in World Cup
Greece has qualified to the second round of the FIBA World Cup after going top of its group of six through a third win in as many group games in Spain. On Monday it beat Puerto Rico 90-79 in...
SOCCER
Fulham striker Mitroglou set to re-join Olympiakos
Greek champions Olympiakos Piraeus are set to re-sign Kostas Mitroglou on loan from English second tier club Fulham after the striker arrived in Athens for talks on Sunday. An Olympiakos spo...
Inside Sports
ANALYSIS
EU’s three big problems all linked
The outgoing president of the European Council, Herman Van Rompuy, said at the weekend that his successor, Donald Tusk, currently Poland’s prime minister, faces three big challenges: the sta...
COMMENTARY
A great president
I fully understand the country’s need for political stability, a necessity which makes the election of a president by the current Parliament absolutely imperative. At the same time, however,...
Inside Comment
SPONSORED LINK: FinanzNachrichten.de
SPONSORED LINK: BestPrice.gr
 RECENT NEWS
1. Greek hoopsters go top of their group in World Cup
2. Tourism targets rise ever higher
3. Horse race betting hurdle removed for OPAP
4. Revised GDP data confirm that Greek growth is near
5. Measures to reduce unemployment
6. Peachy export data despite Russian embargo
more news
Today
This Week
1. Excavation work at Amphipolis reveals section of marble mosaic floor
2. A great president
3. Erdogan visits Turkish-occupied Cyprus
4. Greek economy shrinks at slowest pace since late 2008
5. Don’t feed the zombies
6. Greek officials meet to fine tune strategy for Paris talks with troika
Today
This Week
1. Thessaloniki mayor Boutaris sworn in wearing yellow star amid Golden Dawn protests
2. The battle against progress
3. Attack on gay couple in Athens leaves one man needing surgery
4. Strong undersea quake occurs off island of Milos, felt in Athens
5. Greek quest for debt relief faces hurdles in Paris
6. Hardouvelis, ECB executive discuss bank program, stress tests
   Find us ...
  ... on
Twitter
     ... on Facebook   
About us  |  Subscriptions  |  Advertising  |  Contact us  |  Athens Plus  |  RSS  |   
Copyright © 2014, H KAΘHMEPINH All Rights Reserved.