Mubasher TV
Contact Us Advertising   العربية

Eurozone agrees plan to end Greece’s bailout

Eurozone agrees plan to end Greece’s bailout

Mubasher: Eurozone finance ministers on early Friday agreed on debt relief for Greece and a large cash payout as part of a broad bailout programme exit deal, ending eight years of rescues for the embattled country.

Under the deal, European creditors would disburse EUR 15 billion ($17.46 billion) to pay the more expensive International Monetary Fund (IMF) loans early, while easing Greece’s exit from the programme.

Moreover, the embattled country would receive an additional 10-year maturity for nearly EUR 100 billion loan of its total debt obligations, which reached 180% of gross domestic product (GDP), while interest payments and amortisations would be deferred for another 10 years.

The package would end Greece’s third bailout, under which the country received EUR 86 billion from Europe in return for more than 450 reforms including modernising its fiscal administration and restoring financial stability.

Greece is hoping to secure money on markets, which would require investor confidence.

Despite the reservations on the heavily indebted country’s obligations over the long term, the IMF welcomed the debt agreement.

“The additional debt relief measures announced today will mitigate Greece’s medium-term refinancing risks and improve its medium-term debt prospects, both of which are very welcome results,” IMF managing director Christine Lagarde stated at the conclusion of the Eurozone meeting.

The fund would “also take note of the commitment by Greece’s European partners to keep debt sustainability under review and to take additional debt relief measures if needed,” Lagarde added.

Over the past eight years, Athens received EUR 275 billion from international creditors, after suffering an immense financial crisis, which got the cash-strapped country almost kicked out of the European Union (EU).