The finance ministers of the eurozone Friday, August 14 gave the green light to a third aid package to the Greece , worth 86 billion Maximum euros, which will give the country the financial oxygen it needs, but will have to be followed quickly by action to resolve the problem of Greek debt. The President of the Eurogroup Jeroen Dijsselbloem, welcomed an agreement that “will allow the Greek economy back on the path of sustainable growth if the country complies with the steps” provided for the implementation of reforms and measures budget requested of it.
The agreement reached after six hours of talks in Brussels intervened shortly after the approval Friday morning by the Greek Parliament, the plan reached by Athens and Tuesday creditor institutions of the country (EU, European Central Bank, the European Stability Mechanism and the International Monetary Fund). It provides for new loans up to € 86 billion, which will be granted to the Greece over the next three years.
“I think it would be irresponsible not to use this chance, “said the German minister Wolfgang Schäuble who, despite his initial reluctance, said that it was” a good day “.
It is “an achievement for the Greece who made efforts expected” and “proof that Europe is able to move forward based on the principles of solidarity and responsibility, “responded the French President Francois Hollande.
A first tranche 26 billion
The first tranche will amount to 26 billion euros, and will be itself divided into several sub-groups. First an “immediate” payment of 10 billion placed in a separate account for the recapitalization of Greek banks.
Then the second “sub-band” of 16 billion euros will begin with a payment 13 billion between now and August 20, followed by one or more in the fall, according to the implementation of reforms.
Greece will therefore honor August 20 a refund of 3.4 billion euros to the European Central Bank without the need for bridging finance.
Before the aid is disbursed, several national parliaments must approve the agreement. The German Bundestag and the Dutch and Austrian parliaments
25 billion for banks
A second tranche of 15 billion, entirely dedicated to the recapitalization of banks, is provided when needed by November 15. This brings the total to € 25 billion the amount of this aid plan reserved for Greek banks.
The agreement “is essential to remove the uncertainties which weighed on Greece for six months and to regain confidence, “said the Vice President of the Commission of the Euro, Valdis Dombrovskis, insisting that” what is important now, c is the full implementation “of the program.
” Let’s hope that the Greeks will make the most of this plan, the best reforms and capacity to reform, “commented Minister of Greece Finance Euclid Tsakalotos.
“The last six months have been difficult. They have tested the patience of policy makers even more than our citizens. Together, we rubbed the abyss” commented the President of the European Commission, Jean-Claude Juncker.
“But today I am pleased to announce that all parties have fulfilled their commitments” and “the message of the Eurogroup clear on this basis, the Greece is and will remain irreversibly a member of the euro area, “he continued
As for. French Minister Michel Sapin, he insisted on “the return of confidence” between the finance ministers of the eurozone and the Greek government.
The statement issued by the Eurogroup mentioned several topics of concerns raised during the discussions, especially by Germany. He stated as well that the future fund for privatizations to be “operational by the end of the year” and eventually collect 50 billion, of which EUR 6 billion over the first three years.
The issue of debt studied ‘in October
Another sensitive subject, the issue of the sustainability of Greek debt, that this new loan program will climb to 200% of Greek GDP, a level considered unsustainable IMF has threatened not to continue participating in the financing of loans without the debt reduction measures.
The final communiqué states that “debt sustainability can be ensured through a credible and comprehensive reform program and additional measures without nominal erase “debt. These measures may consist of “lengthening grace periods and repayment,” the text. The debate on the issue “will return to the table in October,” Mr Dijsselbloem said.
This commitment, however, seems still not enough in the eyes of the IMF, which must decide precisely in October of its financial participation Assistance plan. The agreement on the Greece is a “major step” but debt is still too heavy, emphasized the executive director of the institution, Christine Lagarde.
In addition, the Athens partners are concerned, like the Spanish Finance Minister Luis De Guindos, the “risk of political instability” in Greece .
For Friday the adoption by the Greek Parliament of the aid plan, and 400 pages of fiscal and structural measures accompanying revealed fractures within Syriza, the Left Party the radical Greek Prime Minister Alexis Tsipras.
The adoption was made possible thanks to some 120 votes made by the opposition and by the right-wing sovereignist coalition ally in power.
Almost a third of the 149 deputies Syriza did not follow Mr. Tsipras, an internal setback for the prime minister who could soon be forced to seek a vote of confidence.
( With AFP)
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