Greek debt deal reached
Greece's creditors have reached a deal that should allow the
debt-ridden country to receive a further installment of a bailout
package, Radio Liberty reported.
At talks in Brussels, eurozone finance ministers and the
International Monetary Fund (IMF) agreed to reduce Greece's debt by
40 billion euros, cutting it to 124 percent of gross domestic
product by 2020.
That should pave the way for Greece to receive an installment of
some 44 billion euros to pay wages, pensions and suppliers in
December.
Final approval will hinge on national parliaments in some countries
agreeing to the deal.
Jean-Claude Juncker, head of the eurogroup of finance ministers,
announced the breakthrough after twelve hours of negotiations.
"I'm pleased to announce that today we reached a political
agreement on the next disbursement to Greece. Let me first say that
this is not just about money, this is the promise of a better
future for the Greek people and for the euro area as a whole,"
Juncker said.
IMF head Christine Lagarde also hailed the deal.
"Certainly we wanted to make sure that Greece was back on track and
was producing the actions necessary to that effect. That has been
demonstrated and Greece is committed to do what it takes and has
taken the prior actions, voted the right and made the right
commitment," Lagarde told the press after the marathon talks in
Brussels.
Greece's international creditors have pledged a total of 240
billion euros in rescue loans.
Athens has received about 150 billion euros so far. As a condition
of that aid, Athens has carried out unpopular austerity
measures.
Greece is predicted to enter its sixth year of recession shortly
and has a quarter of its workforce out of a job.
The country has been locked out of the international long-term debt
market by exceptionally high interest rates demanded for its bonds
since 2010, and has been relying on funds from rescue loans by
other euro countries and the IMF.