Monday December 22, 2014 Search
Weather | Athens
13o C
8o 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)  
Alpha Bank Cyprus to absorb local Emporiki
Greece’s 10-year bond yield drops 13 bps to 8.30 pct
Traders stay focused on Tuesday’s vote
Spanish bond gains push yield to record low as Greek debt rises
Gov´t seeks better result in second presidential vote as bribe claim probe shelved
With all political parties now actively preparing for the prospect of snap elections, MPs are to vote in the second ballot of a critical three-phase presidential vote at noon on Tuesday. The...
Civil servants to grade evaluation scheme
As of Monday, Greek civil servants are now able to have a say in the public sector evaluation scheme that is currently undergoing fine-tuning by the Ministry of Administrative Reform. By log...
Inside News
SOCCER
Special day for Abidal, lucky one for PAOK
PAOK scraped through its Livadia challenge beating Levadiakos to remain on top of the Super League for Christmas, one point ahead of Olympiakos that enjoyed a great game at Kalloni and offer...
BASKETBALL
Explosive Barca unfazed by Panathinaikos, bomb scare
Panathinaikos lost 80-67 at home to Barcelona on Friday in a rather meaningless game at the end of the first group stage of the Euroleague, but the encounter will be remembered for the bomb ...
Inside Sports
INTERVIEW
Klaus Regling stresses debt sustainability through commitment to reforms
BRUSSELS – The man who is responsible for the loans to Greece as managing director of the European Stability Mechanism (ESM/EFSF), Klaus Regling, is the only high-ranking European official w...
INTERVIEW
‘Crisis of confidence will come back again and again,’ says Thomas Piketty
He’s treated like a rock star wherever he goes to lecture. His book “Capital in the 21st Century,” a study on income and wealth inequality from the 18th century to the present, recently tran...
Inside Comment
SPONSORED LINK: FinanzNachrichten.de
SPONSORED LINK: BestPrice.gr
 RECENT NEWS
1. Gov´t seeks better result in second presidential vote as bribe claim probe shelved
2. Civil servants to grade evaluation scheme
3. Police collar fraudsters who conned money out of jobless
4. Bill aims to close down landfills, curb EU fines
5. Alpha Bank Cyprus to absorb local Emporiki
6. Greece’s 10-year bond yield drops 13 bps to 8.30 pct
more news
Today
This Week
1. Prosecutor gathers depositions in Independent Greeks 'bribe' probe
2. Euro shaky on ECB and Greece, dollar keeps edge
3. Greek parliament vote in balance after Samaras election offer
4. Government accuses SYRIZA and Independent Greeks of 'clear alliance'
5. Draghi starts squaring QE circle in month of persuasion for ECB
6. Klaus Regling stresses debt sustainability through commitment to reforms
Today
This Week
1. Samaras summons bond vigilantes with euro exit talk
2. High stakes
3. Europe's drama in Greece needs final act to avoid tragedy
4. A friendly yet firm message from Pierre Moscovici
5. On the edge but not gutless
6. Ship with 200 migrants off Pylos towed to Italy after passengers refuse to stop in Greece
   Find us ...
  ... on
Twitter
     ... on Facebook   
About us  |  Subscriptions  |  Advertising  |  Contact us  |  Athens Plus  |  RSS  |   
Copyright © 2014, H KAΘHMEPINH All Rights Reserved.