Eurozone agrees landmark Greece deal

Eurozone finance ministers reached a vital deal with Greece after marathon talks to unlock 10.3 billion euros in bailout cash and start debt relief

Eurozone agrees landmark Greece deal

World Bulletin / News Desk

After late-night talks in Brussels, the Eurozone ministers agreed to extend further bailout loans to Greece as well as debt relief, in what they call a "major breakthrough".

They decided to unlock 10.3bn euros ($11.5bn; £7.8bn) in new loans.

The move came two days after the Greek parliament approved another round of spending cuts and tax increases demanded by international creditors.

The ministers also said debt relief would be eventually offered to Greece.

This had been a key demand from the International Monetary Fund (IMF), which says public debt is unsustainable at current levels of about 180% of Greece's gross domestic product.

The deal was announced after 11 hours of talks between the 19 eurozone ministers also known as the Eurogroup.

"We achieved a major breakthrough on Greece which enables us to enter a new phase in the Greek financial assistance programme," Eurogroup President Jeroen Dijsselbloem told reporters early on Wednesday.

He said a package of debt measures would be "phased in progressively", adding that he was "glad to confirm" the IMF would now stay on board.

The IMF and the Eurogroup have been at odds for months over the issue of reducing Greece's debt.

The Greek parliament passed new budget cuts and tax rises at the weekend, in order to unblock much-needed aid to help meet the country's debt repayments over the coming months.


Güncelleme Tarihi: 25 Mayıs 2016, 09:54