Eurozone debt crisis: Greece to get €15 billion bailout from European allies | City & Business | Finance



A senior German government official has confirmed eurozone members are looking at ways to stabilise Greece as it prepares a return to the bond markets to take on debt for public spending.

Eurozone finance ministers will discuss debt relief for Greece on Thursday to ensure the country can return to market financing after eight years of loans from eurozone governments.

Greece has taken on €326 billion (£285.91 billion) of bailouts from eurozone allies and the International Monetary Fund (IMF) and the ministers are considering leaving Greece with enough cash so that it does not have to borrow from the market for the next 18 to 24 months.

How long such a cash send-off would last in practice will depend on debt relief steps, such as the potential replacement of more expensive loans from the International Monetary Fund (IMF) with cheaper eurozone credit.

The German government official said the additional cash for Greece would be taken from unused funds made available in its third bailout.

The official said all parties in Chancellor Angela Merkel’s governing coalition had agreed that a financial contribution of €1.6 billion from the IMF was no longer being viewed as compulsory.

However, potential creditors are understandably seeking assurances from the eurozone that Greece will not go back to the spending that brought the economy to the brink of collapse in 2009.

According to one Greek politician, Greece done no harm to its chances of persuading foreign creditors to free his nation from years of financial humiliation on better terms after Greek Prime Minister Alexis Tsipras agreed a deal with his Macedonian counterpart on the renaming of its neighbour as the “Republic of North Macedonia”.

On Monday, speaking on Skai TV controversial law-maker Dimitris Kammenos, said: “Whether Greece would get the debt deal was subject to whether it would give the name Macedonia.”

However the was denied by the ruling Independent Greeks’ spokesman Theodoros Tosounidis, who said: “There was never reciprocity between the process for a deal over Skopje’s name and negotiations on financial issues within the framework of the EU.

“Kammenos is obviously trying to link things to cover up his actions.”

Mr Kammenos was expelled from the Independent Greeks after backing last week’s no-confidence motion against the government, insisted the deal was indeed a quid pro quo.


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