EU approves 7.2 billion bridging loan for Greece

The loan will act as stop-gap as negotiations for third bailout begin

EU approves 7.2 billion bridging loan for Greece

World Bulletin / News Desk

The EU gave Greece a 7.2 billion euro ($7.8 billion) short-term loan on Friday to keep the country afloat until a third bailout can be put in place.

The money, provided under the European Financial Stabilization Mechanism, will allow Greece to clear its payments to the International Monetary Fund and the Bank of Greece as well as repay the European Central Bank.

“This agreement, backed by 28 European Union member states, prevents Greece from an immediate default,” Valdis Dombrovskis, EU Commission vice president for euro policy, told journalists in Brussels.

The first installment will reach Greece by Monday.

Talks on a bailout of up to 85 billion euros ($93 billion) over three years are expected to begin next weeks and last for three weeks.

Güncelleme Tarihi: 18 Temmuz 2015, 10:34