Class Economy Premium: The Eurogroup approves the third bailout of Greece

Saturday, August 15, 2015

The Eurogroup approves the third bailout of Greece – RPP News

Friday, August 14, 2015 | 10:32 pm

The Ministers of Finance and Economy eurozone approved the third bailout of Greece, which is a new program of financial assistance to that country up to 86,000 million euros and three-year, European sources said.

The deal, which is . came after six hours of discussions at an extraordinary meeting of the Eurogroup, provides a first disbursement of 26,000 million euros to be divided into two sections

This amount will be divided into two subsections: one of 10,000 million euros which is immediately available in a special account of the bailout fund eurozone to recapitalize Greek banks.

The second, 16.000 million, will be disbursed to Greece in several installments, beginning one of 13,000 million by August 20, just in time for Athens to cope with the disbursement of 3,400 million euros to the European Central Bank (ECB), the statement of the Eurogroup.

Another disbursement will fall and be subject to the implementation of key measures agreed in the memorandum of understanding sets out the conditions of the new program and will be specified by the European institutions and agreed by the “number two” of the Ministers of Finance and Economy.

A second disbursement for bank recapitalization of up to 15,000 million euros may be paid after the first review of the rescue and in any case before 15 November, subject to the planned review of the quality of bank assets and the stress tests.

In total there will be 25,000 million and euros to clean up or liquidate the Greek banking problems.

The Eurogroup chairman Jeroen Dijsselbloem explained in press conference that the board of governors of the European Stability Mechanism (ESM) hopes to give its approval on the 19th in the afternoon as part of the procedure, which “would unblock the initial tranche” of rescue.

“All the hard work over the past few weeks has been worthwhile,” Dijsselbloem, who said the extraordinary Eurogroup meeting today has been “very constructive,” he said.

EFE

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Posted by RPP News on Friday, August 14, 2015