Greece 'turning a page' as eurozone agrees debt relief

Greece 'turning a page' as eurozone agrees debt relief

Under the agreement reached by euro area finance ministers in order to ensure the sustainability of the Greek debt load after the expiry of the third bailout this August, Greece will receive a 10-year extension for the repayment of its European Financial Stability Facility (EFSF) loans and an additional 10-year grace period for interest payments.

"It is an exceptional moment", Pierre Moscovici, the EU's economy commissioner, said after the meeting. "We finally got to the end of this path which was so long and hard".

The eurozone ministers' agreement comes almost a decade after Athens stunned the world with out-of-control spending, sparking three bailouts and a near collapse of the euro single currency.

The deal was expected to be an easy one, but last-minute resistance by Germany - Greece's long bailout nemesis and biggest creditor - dragged the talks on for six hours.

The ministers agreed to extend maturities by 10 years on major parts of its total debt obligations, a mountain that has reached 180 percent of the economy - nearly double the country's annual economic output.

According to the source, Eurogroup ministers agreed that the final loan tranche to Greece will total 15 billion euros.

Overall, Greece will be leaving the program with a sizeable cash buffer of 24.1 billion euros covering the sovereign financial needs for around 22 months following the end of the program in August 2018, which represents a significant backstop against any risks.

Anti-US tariffs take effect in EU
Earlier this month, the President lashed out at US ally Canada for the Prime Minister's comments criticizing USA trade policy. Last year, the USA president threatened domestic manufacturers with a 35 percent tariff on cars produced outside the US.

Greeks have seen their economy shrink by a quarter, unemployment spike and salaries and pensions slashed by about 40 percent since first falling into crisis in 2010.

Greece however will remain under the watch of its creditors after the bailout and under stricter terms than for Portugal, Ireland and Cyprus following their respective bailouts.

Eurozone states have agreed on a plan that they say will allow Greece to exit its eight-year bailout program and make its massive debts more manageable.

"Tomorrow we are expecting a decision for the adjustment of Greece's debt which will mark the end of an ordeal for Greece, and the end of austerity", Greek Prime Minister Alexis Tsipras said in Athens on Wednesday.

In addition to the carrot of disbursements, creditors also count on the stick of rising bond yields, which would endanger the access of the sovereign and private companies to debt markets should Greece not comply with its commitments.

But she added that the fund will not join the expiring 86-billion-euro bailout as the time "has run out", and maintained "reservations" on the long term sustainability of the Greek debt, which runs until 2060.

"Greek debt is sustainable going forward", said eurogroup president Mario Centeno.

Related News:



Most liked

CBF Questions FIFA on Use of VAR in 2018 World Cup
Speaking on the "BBC" following the game, former England captain Alan Shearer made his feelings very clear. They may have been talked through what the footage shows, or watched replays on a pitch-side monitor.

Millions of British children exposed to harmful pollution
The council is proposing to introduce a Clean Air Zone (CAZ). "Indoor air pollution needs to be taken as seriously as outdoor air pollution".

LeBron James Working to Bring Other All-Stars to Cleveland
While Sexton certainly improves the Cavs' backcourt, there is no guarantee it will do anything to impact what James may do. After leading the Cavs to their first ever championship in 2016, he signed a two-year deal with an option for this season.

Explosion at Zimbabwean president's rally
Former Education minister David Coltart also condemned the blast, saying he was grateful the president survived. The country's two vice presidents were among at least eight people injured, The Herald reported.

For House GOP, One Doomed Immigration Bill Down, One to Go
Rumours of case dismissals forced federal prosecutors to deny that they have dismissed immigration violation cases in South Texas. House members are touring immigration facilities for a firsthand look at the Trump administration's "zero tolerance" policy .

Sarah Sanders: Restaurant kicked me out because of Trump
Sanders was dining at The Red Hen , a farm-to-table restaurant in Lexington , Virginia which serves "inspired Shenandoah cuisine". Sanders wasn't the first official to be personally confronted with public anger over the administration's immigration policy.

NZ Prime Minister Ardern names new-born daughter Neve Te Aroha
Can you remember leaving hospital after giving birth? As we head home we just wanted to say thanks, from the bottom of our hearts. Ardern reflected on the first time she got to hold her newborn daughter, saying it happened to quickly but was "pretty special".

'Game of Thrones' Stars Rose Leslie And Kit Harington Are Married
And the June 23 date was posted at the Huntly registration office in Aberdeenshire, in the north east of Scotland, last month. Kit and Rose quietly began dating after meeting on set of the show years ago, and got engaged in 2017.

Garbine Muguruza loses in second round at Birmingham
You have to win it yourself.' She helped me a little bit. "We hadn't played each other on this surface before". Kvitova said: "I played Julia a couple times this year, but not on grass, probably never on grass".

England Coach Criticises Media For Leaking Team News
He is on his way there now, and with the ability he has got, he can dominate games from start to finish. Henderson said: "I like VAR when it goes our way, so hopefully I'll like it against Panama ".

Tesla Decides to Axe Dozen or More "Solar City" Locations
Tesla's recent staff reductions reportedly aligned with cuts to the solar division, according to a Reuters report . The lawsuit alleged Tesla's board of directors breached its duties to shareholders by approving the merger.

Hungry rat shreds almost $18,000 worth of cash inside ATM
The rats munched through an estimated 1.2 million rupees (S$24,055) worth of hard currency, local media reported. A rat has nibbled its way through more than a million in Indian rupees after getting into an ATM machine.

Intel boss Brian Krzanich ousted for violating 'fraternisation policy'
Intel managers are forbidden to have relationships with any employee who reports to them, whether it's directly or indirectly. He made the sale in November as Intel and manufacturers worked to create patches before the problems were publicly exposed.

Dozens hurt as attacker tries to throw grenade at Ethiopia prime minister
Mr Tsege recently told the BBC that his release came after Prime Minister Abiy had threatened to resign. The PM affirmed that government will never accept any deal violating the country's sovereignty.

Alzheimer's 'may be caused by a virus'
And once the viruses get inside brain cells, they can just sit there quietly for decades until something causes them to wake up. They found that Alzheimer's biology is likely impacted by a complex group of viral and host genetic factors.