However, Greece would still need to gather AU$17.73 billion to cover its debts including a repayment of AU$6.21 billion to European Central Bank by Monday, which would otherwise result in a catastrophic banking collapse, reported Telegraph UK.
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Mr Cameron declared in 2010 that he had won a “clear and unanimous agreement” that the EFSM would no longer be used to underwrite bailouts of struggling eurozone countries. Next week, without a bailout, it will miss two more payments.
“The hard truth is this one-way street for Greece was imposed on us”. “But the policies offer a course out of the crisis”.
“This is by no means a comprehensive, detailed agreement”, he said.
The new bailout deal fuelled anger among Greek prime minister Alexis Tsipras’ party, with promiment members inclduing energy minister Panagiotis Lafazanis and former finance minister Yanis Varoufakis voting against the austerity bill.
On Monday, the U.S. Treasury Secretary Jacob Lew had said the deal was in the best interests of Greece, Europe and the global economy. It includes reforms to Greece’s consumer tax.
The prime minister has just ended an exhausting, girth-enhancing charm offensive around European capitals, selling his proposals to reform Britain’s relationship with the EU.
The European Union has 28 nations but only 19 of them, including Greece, use the euro.
At the time, European leaders agreed that the EFSM “will no longer be needed [and] should not be used for such purposes”.
One would be to transfer roughly €3.5 billion in profits on Greek government bonds held by eurozone central banks to Athens.
Dombrovskis says the eurozone’s integration efforts since then are having a “positive” effect. To use the fund, officials must establish the existence of a risk to the financial stability of the entire eurozone, which many question.
The EU’s executive arm prepared the proposal and submitted it to the European Council.
Stubb said in a tweet that the so-called Grand Committee has given the government “a mandate for bridge financing and beginning of ESM-negotiations on Greece”.
“Concerns were raised by several non-euro member states, this is something we will have to take into account”, said Valdis Dombrovskis, the EU’s vice president for the euro after meeting with European finance ministers.
At the same time, the worldwide Monetary Fund said the bailout agreements did not go far enough to end Greece’s troubles.
The bridge loan would have a maximum maturity of three months and the funds would come from the eurozone bailout fund of the European Financial Stability Mechanism (EFSM).
Juncker didn’t specify how much Greece would receive. In short, if parties like Podemos in Spain perceive that Germany has blinked on debt relief they too will push for writedowns, something we outlined in detail after the last International Monetary Fund “leak”.
Greece on Monday agreed on a preliminary rescue deal with its fellow eurozone partners.
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Padoan says, “we avoided the worst”.
