Europe agrees new package of loans and debt relief to Greece – BBC World

Image copyright AFP

Image caption discussion of ministers lasted until dawn.

The eurozone governments reached an agreement to offer Greece a rebate of part of its debt, a requirement of the IMF to join the third bailout of the Greek economy.

in a meeting that lasted until dawn, the finance ministers of the eurozone also agreed to unlock a new loan package of US $ 11,500 million for the payment of debts and unpaid bills.

A first installment of more than US $ 8,300 million will be disbursed in June. The other US $ 3,200 million “after the summer.”

The decision comes two days after Greece’s parliament approved a new package of spending cuts and tax increases, according to him demanded by international creditors.

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Image caption The new cuts again provoke protests.

The International Monetary Fund considered unsustainable Greek debt at its current level of 180% of GDP.

The deal was announced after a meeting of the 19 eurozone ministers that lasted more than 11 hours.

“This is a major breakthrough that allows us to enter a new phase of the program of financial assistance to Greece,” said Eurogroup chairman Jeroen Dijsselbloem.

Dijsselbloem said the maturity of a portion of the debt will be extended.

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Poul M. Thomsen, IMF Director for Europe, welcomed the recognition that Greek debt is unsustainable.

Thomsen warned, however, that even the IMF board has Washington to agree to participate in the aid package to Greece.

And stressed that is still not entirely clear what percentage of the debt will be relieved. Europe and the IMF had been confronted by the issue of Greek debt removes months.