Send to Kindle
The Euro sculpture is seen in front of the European Central Bank (ECB) headquarters in Frankfurt, Germany. Photo by EPA/BGNES
After several months of tough negotiations, finance ministers from the 17 countries that use the euro approved late on Tuesday to release their portion of an EUR 8 B euro loan to Greece and stave off a Greek default.
The news was broken by Jean-Claude Juncker, who heads the eurozone finance ministers, after six hours of meetings.
The International Monetary Fund (IMF) is expected to sign off on its share — roughly one-third — early next month.
Troubled Greece will receive the loans by the middle of December.
The loan tranche was approved in principle at the end of the term of Papandreou government, which was forced to resign after the preposterous idea of the then prime minister to hold a referendum on eurozone membership.
Greece is now governed by a coalition government presided by technocrat Loukas Papademos, who was until recently vice governor of the European Central Bank, supported by the country’s two major political parties, Pasok and New Democracy.
The final nod of approval for the loan came after the major political parties, supporting the current cabinet, vowed in writing to implement the austerity reforms, to which Papandreou government had committed.
The ministers also agreed on rules to increase the firepower of their bailout fund, the European Financial Stability Facility, and will be able to offer insurance to those buying the bonds of nations like Spain and Italy.
In these cases, insurance certificates — attached to make bonds more attractive — will themselves be tradable, said Klaus Regling, who heads the bailout fund. The fund will also seek investment from sovereign wealth funds and other non-European sources.
Though a target of EUR 1 trillion was set for the expanded bailout fund, ministers acknowledged that this was now unlikely.
"This figure will be very difficult to reach, in view of the changed market circumstances." Luc Frieden, Luxembourg's finance minister, said.
After the discussions late Tuesday, Olli Rehn, European commissioner for economic and monetary affairs, said there would have to be tougher measures if Italy was to reach its financial targets.
We need your support so Novinite.com can keep delivering news and information about Bulgaria! Thank you!
A nationwide strike in Greece has brought the country's transport networks to a standstill, affecting railways, ferries, buses, taxis, and more
In a recent interview with BTA, Kristalina Georgieva, Managing Director of the IMF, emphasized the importance for Bulgaria to seize the opportunity to adopt the euro, stressing that it is achievable with the right political will
In a bold move to amplify their demands for higher wages and better working conditions, journalists across Greece have embarked on a 24-hour strike, effectively halting news broadcasts for the duration
In a demonstration of solidarity and protest against the government's economic policies, media workers across Greece have initiated a 24-hour strike, aligning themselves with the call for protests issued by labor unions
As Bulgaria grapples with a deepening political crisis and the looming specter of early elections, the economic ramifications are starkly evident
In a significant move toward Bulgaria's integration into the Eurozone, the European Commission (EC) has pledged support for the country's efforts to promote the adoption of the euro
Bulgaria's Minister of Defense Todor Tagarev admitted the possibility that an explosive device might have been planted on board the crashed plane in which Yevgeny Prigozhin was traveling
The European Commission has announced that it is preparing criminal proceedings against Bulgaria, Cyprus, Greece, Malta, and Portugal for incorrect application of the rules on the exchange of data on criminal records and the establishment of the relevant
The European Commission has started an evaluation of the Plan for Reconstruction and Development of Bulgaria, said the spokesman of the European Commission Eric Mamer. The document was submitted to the Commission on 15 October.
58% of Bulgarians do not support the introduction of the euro as the official currency in the country. This shows a study prepared by Trend agency specifically for the financial forum NEXT DIFI 2021, organized by b2b Media for the fifth year. The data dur
Too late Bulgaria began to explain its own position towards North Macedonia, as it should have been clear to our European partners some time ago.
An SPD-led government in Germany has significant potential to sharpen international attention to the problems of corruption in Bulgaria.
UN Happiness Report: Bulgaria's Astonishing Leap in Rankings
Bulgaria: 3 Regions With Lowest Life Expectancy - EU Report 2022
