We use cookies to provide you with a better experience. If you continue to use this site, we'll assume you're happy with this. Alternatively, click here to find out how to manage these cookies

hide cookie message
RSS FeedFinancial Planning

Euro zone delays Greek bailout decision


Finance ministers postpone decision on €12 billion emergency loan

Article comments

The euro zone has delayed its decision on granting Greece further bailout loans worth €12 billion as wrangling continues over the terms of the prospective deal.

European finance minister’s want Athens to introduce tough austerity measures before they and the International Monetary Fund (IMF) make the latest round of emergency funding available but the Greek government says it needs the extra funds to avoid defaulting on its existing debts.

Fresh loans are expected to be available by mid-July but Athens says this will be too late to avoid a default that could have severely damaging effects across Europe.  

The disbursement of funds from the EU and the IMF will depend on fiscal reform laws being passed in Greece, where popular opposition to austerity measures is growing.

Belgian finance minister Didier Reynders said: “To move to the payment of the next tranche, we need to be sure that the Greek parliament will approve the confidence vote and support the programme, so the decision will be taken at the start of the month of July.”

In a statement issued after a seven-hour meeting in Luxembourg that ended in the early hours of Monday morning, the ministers announced they would put together a second bailout of Greece, which missed debt targets in the first rescue plan by big margins.

The new plan, to be outlined by early July, will include more official loans and, for the first time, a contribution by private investors, who will be expected to maintain their exposure to Greece through voluntary purchases of new bonds as existing ones mature.

The statement did not say how large the new bailout would be, or give details of the private sector contribution beyond describing it as “substantial”.

Share:

Comments

Euro zone delays Greek bailout decision
Financial Planning

Budget: What business wants

Budget: What business wants

CFOs are keen for the chancellor to avoid any uncertaintymore ..


Co-operative Group posts £2.5bn loss

Annual loss the worst in its 150 year historymore ..

Google sees 19% rise in Q1 revenue

However, company missed analysts' expectation as ad prices slidmore ..

Starbucks to move Europe HQ to UK

Coffee chain says move reflects growing importance of UK marketmore ..

Stay ahead of the curve

CFOs used to low interest rates ignore working capital optimisation at their perilmore ..

Digital streamlining of travel and expense claims [Part II]

Concur shows CFOs how to make life easier when the auditors come knockingmore ..

Send to a friend

Email this article to a friend or colleague:


PLEASE NOTE: Your name is used only to let the recipient know who sent the story, and in case of transmission error. Both your name and the recipient's name and address will not be used for any other purpose.



In Depth
How M&A teams can create value by challenging the CEO

How M&A teams can create value by challenging the CEO

A typical “hold” period of nine to 18 months can generate increased sale value more ..

In Depth
What every company needs to do about big data?

What every company needs to do about big data?

In the first of a three part series, Pat Brans explores just how big 'big data' will get? more ..

Advertisement

* *