Eurozone finance ministers cleared the way Saturday for Greece to receive urgent funds to avoid imminent bankruptcy, but warned it would take weeks to conclude a new bailout for the debt-hit nation.
Greece is expected to receive 12 billion euros from the eurozone and IMF by July 15 after the ministers approved the fifth tranche of aid from last year's 110-billion-euro ($160 billion) financial rescue package.
The IMF is due to clear its slice of the next instalment, 3.3 billion euros, next week. The eurozone's share amounts to 8.7 billion euros.
Following a more than two-hour conference call, the ministers said in a statement they would also determine the details of a second bailout for Greece, including the scale of private sector participation, in the 'coming weeks.'
German finance minister Wolfgang Schaeuble indicated that Greece may have to wait until autumn for a new rescue package as Berlin wants Athens to follow through with its commitments, including privatisations 'that should begin immediately.'
The IMF welcomed Europe's move Saturday.
'We welcome the eurogroup's commitment to a financing strategy that ensures the Greek economic program is fully covered,' chief International Monetary Fund spokeswoman Caroline Atkinson said in a statement.
'This commitment — together with the recent parliamentary passage of the necessary fiscal measures in Greece — will enable the IMF's executive board to consider the completion of the fourth review and the release of the next tranche under the current stand-by arrangement with Greece.'
Source : New Age
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