Donors of Greece - euro area and the IMF - have given, Friday, June 3, the green light to the payment of the fifth tranche of the loan to the country. An amount that will allow it to avoid bankruptcy or out of monetary union. Following further fiscal savings and privatization announced by the Greek Government, the leader of the finance ministers of the euro area - Eurogroup - Jean-Claude Juncker, said to expect "that 'additional funding be granted to Greece in exchange for strict conditions.
" These funds, whose amount was not specified, will add to 110 billion euros in loans already promised in 2010 to three years in the country mired in crisis due to huge debt. The figure of 60 billion euros in additional aid was mentioned several times. And the Greek press said Friday that an agreement in principle had been sealed in this direction to meet the needs of the country until 2014.
The announcement by Mr Juncker in Luxembourg, following a meeting with Greek Prime Minister George Papandreou is likely to reassure financial markets. They were concerned about a bankruptcy risk of the country, still unable to borrow only because of very high interest rates that are required.
This particular condition has been raised by Germany, despite strong opposition from the European Central Bank, which fears to scare the financial markets and cause a crisis of confidence. According to diplomatic sources, the most likely option is that banks be asked to renew their loans to Greece where they have already granted him they mature, a mechanism called "rollover" in financial lingo.
The Eurogroup President expressed confidence that with the new financial boost, "there will be no output from Greece in the euro area" and "there will be no failure" of countries on the payment of its debt. In return, the Greek socialist government will further strengthen the austerity and accelerate privatization to reduce the deficit.
It provides 6.4 billion euros in additional savings in 2011 and 22 billion by 2015. The plan, however, faces the social unrest and a general strike is already announced for June 15 European Commissioner for Economic and Monetary Olli Rehn has justified these measures by pointing out that they were also "critical [...] to ensure financial stability and economic recovery in Europe." 
" These funds, whose amount was not specified, will add to 110 billion euros in loans already promised in 2010 to three years in the country mired in crisis due to huge debt. The figure of 60 billion euros in additional aid was mentioned several times. And the Greek press said Friday that an agreement in principle had been sealed in this direction to meet the needs of the country until 2014.
The announcement by Mr Juncker in Luxembourg, following a meeting with Greek Prime Minister George Papandreou is likely to reassure financial markets. They were concerned about a bankruptcy risk of the country, still unable to borrow only because of very high interest rates that are required.
This particular condition has been raised by Germany, despite strong opposition from the European Central Bank, which fears to scare the financial markets and cause a crisis of confidence. According to diplomatic sources, the most likely option is that banks be asked to renew their loans to Greece where they have already granted him they mature, a mechanism called "rollover" in financial lingo.
The Eurogroup President expressed confidence that with the new financial boost, "there will be no output from Greece in the euro area" and "there will be no failure" of countries on the payment of its debt. In return, the Greek socialist government will further strengthen the austerity and accelerate privatization to reduce the deficit.
It provides 6.4 billion euros in additional savings in 2011 and 22 billion by 2015. The plan, however, faces the social unrest and a general strike is already announced for June 15 European Commissioner for Economic and Monetary Olli Rehn has justified these measures by pointing out that they were also "critical [...] to ensure financial stability and economic recovery in Europe."
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