Greece's creditors approved the release of another round of bailout funds on early Wednesday upon the conclusion of their Eurogroup meeting in Brussels. After an agreement between the finance ministers supervising the bill, Greece is expected to receive 10.3 billion euros as part of its third bailout agreement. The breakthrough came after Greece’s two previous rounds of austerity in May – which included pension benefit reforms and increased taxes. Greece will be receiving an initial 7.5 billion euros in June to cover its debt servicing needs and to clear part of the arrears weighing on its economy.
Under the bailout conditions, sustainability of public debt is ensured, while gross financing is expected to remain below 15% of the country’s GDP during the program period, and below 20% of its GDP thereafter. The Greek debt burden currently stands at 180% of its GDP, which the IMF terms as unsustainable. The new bailout has the IMF sitting out from contribution to the tranche, though the organization is expected to carry another review of the Greek economy. A staunch proponent of seeking debt relief for Greece, the IMF has had resistance from German officials who are unwilling to find a solid stance on the issue.
Creditors Approve Greece Bailout Funds
Market Trends - 25/05/2016