Help Greece has green light – The Economist

The ESM board, composed of the finance ministers of the 19 member countries of the eurozone, “approved the program for Greece,” the statement said.

Finance ministers from the euro area approved unblock a first tranche of aid to Greece, which the country will repay 3,400 million euros to the European Central Bank (ECB) announced in a statement European Stability Mechanism (ESM).

The ESM board, composed of the finance ministers of the 19 member countries of the eurozone, “approved the program for Greece,” the statement said.

The 19 countries were waiting before authorizing this release, the national parliaments called upon to rule on the new aid program to Greece so.

Yesterday was the last obstacle up with the vote of the German Bundestag in favor of that plan, including financial assistance under the form of loans that can reach 86,000 million euros in three years, and a memorandum with many austerity measures and reforms in Greece. While in the Netherlands, the rescue was approved by a majority after a heated debate in which Prime Minister Mark Rutte, received attacks violate a campaign promise to accept the billionaire package.

ministers Eurozone finance agreed last Friday to grant the first tranche of aid totaling 26,000 million euros.

The first installment of 23,000 million euros divided into 10,000 million, to be placed in an account apart intended to help Greek banks, and 13,000 million that will allow reimburse Athens, as of today, 3,400 million euros to the ECB (of which 200 million are interest).

The sum also facilitate 7,160 million euros repay a bridge loan, agreed by the EU in July for Greece could make a previous payment to the ECB and amounts due to other public creditor, the International Monetary Fund (IMF).

There remain 3,000 million euros of the first installment, which will be delivered in September or October.

Christine Lagarde, IMF managing director, said it will be until October when the agency decides whether to participate in the rescue; However, Jeroen Dijsselbloem, president of the Eurogroup, said he believes the euro zone countries and the Fund may reach an agreement on its participation in the latest Greek bailout. He said that while European governments are opposed to a haircut on Greek debt and the IMF believes that this is unsustainable, both may find a compromise in the form of lower interest rates and longer repayment periods.