Euro zone, IMF reach deal on Greek bailout

Nov 28 2012, 00:56 IST
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SummaryFor Greece, the agreement means euro zone ministers have unlocked loan installments totaling 43.7 billion euros ($56.7 billion).

Finance ministers from the euro zone and the International Monetary Fund patched up their differences over a bailout for Greece early Tuesday with a spate of measures bringing closer the release of long-delayed emergency aid.

The parties reached the deal after their third meeting in three weeks aimed at finding alternative ways of giving Greece relief in light of opposition by creditors like Germany and the Netherlands to so-called haircuts that would involve forgiving some Greek debt.

The decisions “will certainly reduce the uncertainty and strengthen confidence in Europe and in Greece,” Mario Draghi, the president of ECB, said as he left the meeting.

For Greece, the agreement means euro zone ministers have unlocked loan installments totaling 43.7 billion euros ($56.7 billion).

Most of that money would start to be paid out in December, with further payments during the first quarter of next year on the condition that Greece continued to fulfill its pledges under the bailout plan.

“Greece has already come a very, very long way and tonight the Eurogroup has rightly recognised that,” said Olli Rehn, the European commissioner for economic and monetary affairs.

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