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In reply to the discussion: STOCK MARKET WATCH -- Friday, 16 March 2012 [View all]Demeter
(85,373 posts)35. Euro Area Countries Formally Approve Second Greek bailout
http://online.wsj.com/article/BT-CO-20120314-708151.html
The euro zone countries Wednesday finally signed-off on Greece's second bailout program, ending a protracted and dramatic negotiating process that started last July. The hope is that the EUR130-billion package, funded mostly by euro-zone countries as well as the International Monetary Fund, will be enough to keep Greece funded until 2014-2015. But talk of a third Greek bailout has already started with the ink still wet on the second one, especially following a report by European Union experts highlighting the risks to structural-reform implementation and predicting "at best stagnation" for 2013. Greece has been in a recession for five consecutive years.
A statement from Jean-Claude Juncker, chairman of the Eurogroup of euro-zone finance ministers said that "euro area member states have today formally approved the second adjustment program for Greece" and added that "all required national and parliamentary procedures have been finalised." Since negotiations to secure the fresh funding started last summer, Greece has gone through one of the most tumultuous periods in its modern history, seeing its prime minister step down and get replaced by an unelected former central banker. With snap elections coming up, most likely in late April or in May, it is difficult to draw a line under Greece's sovereign-debt crisis after securing the new aid.
It also said the 17 countries had authorized the transitional euro-zone rescue fund, the European Financial Stability Facility, to release the first instalment of Greece's bailout. The first instalment will be "for a total amount of EUR39.4 billion, which will be disbursed in several tranches," the statement said. The announcement formalised a political decision to grant Greece a fresh EUR130 billion package taken at a euro-area finance ministers' meeting Monday in Brussels.
Juncker expressed the conviction that the program would "allow the Greek economy to return to a sustainable path, which is in the interest of everyone," and called on Greece to remain committed to the structural reforms and fiscal targets set as conditions for the aid. He called the second bailout a "unique opportunity for Greece that should not be missed...The Greek authorities should... continue demonstrating strong commitment and to keep up the implementation momentum by rigorously pursuing the adjustment effort in the areas of fiscal consolidation, structural reforms and privatization, strictly in line with the new programme," Juncker's announcement said.
Discussions to add fresh euro-zone and International Monetary Fund cash to Greece's first bailout approved in May 2010 had started in July 2011 but it took months of talks to finalize it.
The euro zone countries Wednesday finally signed-off on Greece's second bailout program, ending a protracted and dramatic negotiating process that started last July. The hope is that the EUR130-billion package, funded mostly by euro-zone countries as well as the International Monetary Fund, will be enough to keep Greece funded until 2014-2015. But talk of a third Greek bailout has already started with the ink still wet on the second one, especially following a report by European Union experts highlighting the risks to structural-reform implementation and predicting "at best stagnation" for 2013. Greece has been in a recession for five consecutive years.
A statement from Jean-Claude Juncker, chairman of the Eurogroup of euro-zone finance ministers said that "euro area member states have today formally approved the second adjustment program for Greece" and added that "all required national and parliamentary procedures have been finalised." Since negotiations to secure the fresh funding started last summer, Greece has gone through one of the most tumultuous periods in its modern history, seeing its prime minister step down and get replaced by an unelected former central banker. With snap elections coming up, most likely in late April or in May, it is difficult to draw a line under Greece's sovereign-debt crisis after securing the new aid.
It also said the 17 countries had authorized the transitional euro-zone rescue fund, the European Financial Stability Facility, to release the first instalment of Greece's bailout. The first instalment will be "for a total amount of EUR39.4 billion, which will be disbursed in several tranches," the statement said. The announcement formalised a political decision to grant Greece a fresh EUR130 billion package taken at a euro-area finance ministers' meeting Monday in Brussels.
Juncker expressed the conviction that the program would "allow the Greek economy to return to a sustainable path, which is in the interest of everyone," and called on Greece to remain committed to the structural reforms and fiscal targets set as conditions for the aid. He called the second bailout a "unique opportunity for Greece that should not be missed...The Greek authorities should... continue demonstrating strong commitment and to keep up the implementation momentum by rigorously pursuing the adjustment effort in the areas of fiscal consolidation, structural reforms and privatization, strictly in line with the new programme," Juncker's announcement said.
Discussions to add fresh euro-zone and International Monetary Fund cash to Greece's first bailout approved in May 2010 had started in July 2011 but it took months of talks to finalize it.
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