C. Morales and R. Cardenas
The banks reopen their branches on Monday, according to an industry source cited by Reuters.
Greece seems to have moved away from the abyss after the European Union approved a loan to Athens and meet its immediate financial obligations after the European Central Bank (ECB) raised the roof of emergency loans for the Greek banking system .
After the troubled Mediterranean nation fulfill its part of the deal to approve the reforms demanded by creditors to receive new money, it was the turn of his European partners yesterday.
The finance ministers of the 28 countries authorized community “in principle” to use the European Financial Stability for a bridge loan of EUR 7 billion (US $ 7,600 million), necessary for the nation to pay financing Monday a loan of 3,500 million euros owed to the ECB, plus interest for 700 million euros. The money will also allow the government to continue operating while negotiating the details of a third rescue.
In a sign of their determination to regain the confidence of its European allies, the Greek Ministry of Finance announced that from the Monday implement changes to Value Added Tax (VAT), one of the key demands of its creditors.
More help for banks
On Meanwhile, the issuing agency yesterday continental increased emergency funding for Greek banks, which put an end to a freeze since late June.
The institution will provide an additional 900 million euros to lenders Hellenes for a week through the call Emergency Liquidity Assistance (ELA, its acronym in English), bringing the total amount reached almost 90 billion euros. While the increase is small, this support was necessary for firms to reopen after nearly three weeks closed.
The Ministry of Finance pointed out that banks will remain closed until Sunday and said a senior banker Reuters entities would open on Monday after the ECB to expand emergency funding.
“Things have changed,” said Mario Draghi, ECB president after its monetary policy meeting yesterday in Frankfurt . “We had a number of news with the approval of the financing package bridge, with the vote in several parliaments, beginning with Greece, which have now restored the conditions” to apply an increase in ALS, he said.
The banker added that the ECB “has acted within its mandate and will continue under the assumption that Greece will remain a member of the euro zone.”
The Italian economist said he was confident that the country will pay the ECB and the International Monetary Fund, an organization that already defaulted two payments.
imperfect Union
Draghi said the debt crisis Greece has shown the fragility of the euro area and the need for deeper integration within the region.
“This union is imperfect and to be imperfect is fragile, vulnerable and does not provide all the benefits that could if it was complete, “he said. “The future should now see decisive steps to further integration,” he said.
In a rare move, the authority issued an explicit message of support to address the huge Greek debt, a demand that has long Athens requested and this week was supported by the IMF, but is resisted by Germany for the political costs that could have a debt reduction.
“It is undisputed that debt relief is necessary and I never No one has denied, “he said.
” The issue is what is the best form of debt relief within our institutional legal framework. I think we should focus on this point in the coming weeks, “said Draghi .
The markets celebrated
major international markets yesterday ended higher, following approval by Parliament Greek package of measures demanded by the creditors and approved by the latter to advance a new bailout.
Thus, the Euro Stoxx 600 closed the day with a rise of 1.4%, which were completed seven consecutive days of gains, the longest streak since January.
Similar increases were recorded in bags Italy, Spain and Germany.
These increases occur in a scenario in which the president of the US Federal Reserve Janet Yellen manifest on Wednesday that it is likely that the rate hike announced the company will start this year. Analysts say this would further weaken the euro, boosting exports and economy in Europe
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