EU officials to finalize loan deal structure

The euro zone group of finance ministers’ working group was to convene in Brussels on Wednesday in a bid to finalize the structure of the rescue package that is to be dispensed to Greece over the coming years.

In Athens meanwhile the Cabinet is to convene at 3 p.m. in order to approve Greece’s 130-billion-euro loan agreement with its foreign lenders, the Foreign Ministry said.

On Thursday, the loan deal is to be signed by Greece and its partners, according to Finance Minister Evangelos Venizelos.

Venizelos said on Tuesday that Greece would receive a total of 172.7 billion euros from the euro zone and IMF until the end of 2015. Of this, 130 billion euros will be from the second bailout, 34.5 billion euros that was left over from the first package and 8.2 billion euros that will be part of the 28 billion in total that the IMF will provide.

In contrast with the first bailout, Greece will receive the loans in small, monthly installments. The IMF will provide 1.65 billion a month until the end of 2014 and the euro zone will supply the rest. In total, Athens will receive 5.9 billion euros this month, 3.3 billion euros in April and 5.3 billion in May.

Greece’s relief at having its new bailout approved in principle on Tuesday was tempered by the publication of a European Commission report on the Greek economy, which foresees Athens having to adopt almost 12 billion euros of austerity measures in 2013 and 2014

Ekathimerini.com