ATHENS: Finance ministers of the 19-nation euro single currency group on Friday approved the first 26 billion euros ($29 billion) of a vast new bailout package to help rebuild Greece’s shattered economy.
The approval came after Greece’s parliament passed a slew of painful reforms and spending cuts after a marathon overnight session that divided the governing party, raising the specter of early elections. “Of course there were differences but we have managed to solve the last issues,” Eurogroup chairman Jeroen Djisselbloem told reporters in Brussels. “All the intense work of the past week has paid off.”
Ten billion euros will be available to recapitalize Greece banks, while a second slice of 16 billion euros will be paid in installments, starting with 13 billion euros by Aug. 20 when Greece must make a new debt payment to the European Central Bank. “On this basis, Greece is and will irreversibly remain a member of the Euro area,” said European Commission President Jean-Claude Juncker after the deal was sealed.
