Arab Today, arab today ecb eurogroup give greece breathing space after athens vote
Last Updated : GMT 17:18:14
Arab Today, arab today
Arab Today, arab today

ECB, Eurogroup give Greece breathing space after Athens vote

Arab Today, arab today

Arab Today, arab today ECB, Eurogroup give Greece breathing space after Athens vote

ECB boosted its cash lifeline to the crisis-hit country
Frankfurt - AFP

 package demanded by creditors.

"The Eurogroup welcomes the adoption by the Greek Parliament of all the commitments specified in the Euro Summit statement" reached in marathon talks last weekend, the eurozone's 19 finance ministers said, just hours after the Greek parliament passed sweeping changes to taxes, pensions and labour rules.

In an almost immediate reward to Athens, European Central Bank chief Mario Draghi in Frankfurt said that a vital cash lifeline to Greece's struggling banks would be boosted, while also throwing his weight behind IMF calls for debt relief to the country.

The Emergency Liquidity Assistance or ELA -- which has kept Greek banks, and by extension the Greek economy, afloat -- has been fixed at around 89 billion euros ($99 billion) since late June, but would be topped up with an additional 900 million euros, Draghi said.

The news propelled European stock markets which closed higher on Thursday.

Greek Prime Minister Alexis Tsipras on Wednesday had to face down a major mutiny in his radical left Syriza party, and violent protests in the streets of Athens, to win parliamentary approval for the draconian reforms demanded in the bailout package.

But the Eurogroup, led by the no-nonsense Dutch Finance Minister Jeroen Dijsselbloem, was encouraged by the outcome.

The Greek authorities "have implemented the first set of four measures in a timely and overall satisfactory manner", it said in a statement.

- 'Important step' -

The European Commission, the EU's executive and Greek creditor, also approved Greece's delivery of key reform demands.

"The Greek parliament took an important step toward rebuilding trust with Greece's international partners," said commission spokeswoman Annika Breidthardt.

The Eurogroup statement did not mention whether ministers had discussed a three-month 7.0 billion euro bridging loan for Greece through an EU-wide crisis fund to hold Athens over until its new bailout is ratified.

Non-euro Britain and the Czech Republic have resisted the use of this fund, but European officials told AFP that a compromise was in the works and could be finalised on Friday.

In Frankfurt, the ECB played its part by boosting the ELA facility which, strictly speaking, it is only available for banks that are solvent -- a questionable assumption in Greece.

But Draghi said, with the bailout talks now moving forward, the conditions were "in place" to raise the ELA ceiling.

Athens has failed to make a key debt repayment to the International Monetary Fund, and its next debt deadline is a 4.2-billion-euro payment to the ECB itself on July 20.

But Draghi was adamant that Athens would repay its debts to both the ECB and the IMF, declaring confidently that "on 20 July, we will be repaid".

Draghi insisted that the capital controls introduced by Athens had protected savers, even if they may have put a temporary drag on recovery.

The ECB chief conceded that doubts remain about the "willingness and capacity" of the Greek government to push through the economic reforms demanded by its creditors.

- 'Debt relief needed' -

Draghi also said that Greece -- whose debts amount to 180 percent of economic output -- would need some sort of debt relief.

The key was what form such relief could take, he said.

The IMF, one of Greece's creditors alongside the EU and the ECB, caused a stir with a bombshell report criticising the deal and warning that lenders would have to go "far beyond" existing estimates for debt relief.

But for the biggest creditor, Germany -- whose parliament must vote on resuming talks on the new bailout package -- a pure and simple writeoff is seen as a no-go.

"A real debt haircut is irreconcilable with membership in a monetary union," hardline Finance Minister Wolfgang Schaeuble insisted on Deutschlandfunk public radio.

In Athens, many of Syriza's hardline leftists Wednesday voted against the measures, including former finance minister Yanis Varoufakis, after a tempestuous debate.

And even the new finance chief Euclid Tsakalotos said his decision to back the bailout terms "will burden me my whole life".

Several other eurozone parliaments are now due to vote on the bailout package.

France gave its green light on Wednesday, and Finland's parliament on Thursday gave its approval for the bridge financing plan and for talks on a third bailout deal for Greece.

On Friday, German lawmakers will interrupt their summer holiday to vote on granting the government a mandate to negotiate the modalities of the new aid package.

Name *

E-mail *

Comment Title*

Comment *

: Characters Left

Mandatory *

Terms of use

Publishing Terms: Not to offend the author, or to persons or sanctities or attacking religions or divine self. And stay away from sectarian and racial incitement and insults.

I agree with the Terms of Use

Security Code*

Arab Today, arab today ecb eurogroup give greece breathing space after athens vote Arab Today, arab today ecb eurogroup give greece breathing space after athens vote

 



Arab Today, arab today
Arab Today, arab today Jordan airline suggests flyers 'talk'

GMT 11:59 2017 Friday ,24 March

Jordan airline suggests flyers 'talk'
Arab Today, arab today 5 Crafty Must-Have Limited-Budget Ideas

GMT 17:03 2017 Saturday ,25 March

5 Crafty Must-Have Limited-Budget Ideas
Arab Today, arab today Dozens dead in US-led Syria strikes

GMT 08:35 2017 Thursday ,23 March

Dozens dead in US-led Syria strikes
Arab Today, arab today Former head of Egypt’s syndicate submits appeal

GMT 20:11 2017 Saturday ,25 March

Former head of Egypt’s syndicate submits appeal
View News in Arabic - Business: مصارف
Arab Today, arab today
Arab Today, arab today
Arab Today, arab today Yemen children dream of school

GMT 07:25 2017 Friday ,24 March

Yemen children dream of school
Arab Today, arab today MP submits a petition to dismiss university head

GMT 06:21 2017 Friday ,24 March

MP submits a petition to dismiss university head
Arab Today, arab today Salvage of South Korea's Sewol ferry

GMT 04:51 2017 Friday ,24 March

Salvage of South Korea's Sewol ferry
Arab Today, arab today Prepares to give stargazers an eyeful

GMT 13:38 2017 Monday ,06 March

Prepares to give stargazers an eyeful
Arab Today, arab today Audi RS 5 Coupe acquires new design

GMT 13:22 2017 Thursday ,23 March

Audi RS 5 Coupe acquires new design
Arab Today, arab today Renault Trezor wins design award

GMT 11:56 2017 Tuesday ,21 March

Renault Trezor wins design award
Arab Today, arab today Actress Mervat Amin reveals her role in new series
Arab Today, arab today 2017 already marked

GMT 15:25 2017 Tuesday ,21 March

2017 already marked

GMT 06:04 2017 Thursday ,23 March

Haifa Wahby bets on her new drama show

GMT 22:00 2017 Thursday ,23 March

Number of unwedded girls amounts to 2.5m

GMT 18:57 2017 Tuesday ,21 March

Accessories designer reveals her new collection

GMT 10:34 2017 Tuesday ,21 March

Mexico threatens to ditch US corn imports

GMT 13:26 2017 Friday ,24 February

Expresses Algerian history by woody figures

GMT 20:03 2017 Saturday ,25 March

Health expert warns from dust sensitivity

GMT 07:36 2017 Wednesday ,22 March

US, Britain ban laptops on flights

GMT 06:31 2015 Thursday ,04 June

Pluto's unruly moons

GMT 19:27 2017 Saturday ,11 March

Boualsof launches "Priestess Kahina" collection
Arab Today, arab today
Arab Today, arab today
 
 Arab Today Facebook,arab today facebook  Arab Today Twitter,arab today twitter Arab Today Rss,arab today rss  Arab Today Youtube,arab today youtube  Arab Today Youtube,arab today youtube
arabstoday arabstoday arabstoday arabstoday
arabstoday arabstoday arabstoday
arabstoday
بناية النخيل - رأس النبع _ خلف السفارة الفرنسية _بيروت - لبنان
arabstoday, Arabstoday, Arabstoday