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Eurogroup reaches deal on $11 billion Greek bailout

Staff writer ▼ | May 25, 2016
Eurozone finance ministers have struck a deal with Greece and the International Monetary Fund (IMF) to release over €10 billion in emergency bailout payments.
South of Europe   Much of the money Athens will send straight back to its creditors
Much of that Athens will send straight back to its creditors to avert default in the summer.

Eurogroup President Jeroen Dijsselbloem confirmed that an agreement has been reached to greenlight €10.3billion ($11.5bn) in bailout loans to Greece.

The bailout cash will be released in tranches, with over €7.5 billion ($8.4bn) to be allocated in June, and another payment expected sometime in the fall.

“This agreement is act of confidence in today’s Greece,” French Finance Minister Michel Sapin said. Without shedding further details into the deal, Sapin called the agreement comprehensive and noted that it covered short, medium and long-term measures related to the debt.

Meanwhile Slovakia's Finance Minister Peter Kažimír said that new tranche will provide Greece with enough “breathing space until October.”

“Tranche amounting to €10.3 bn will be disbursed to Greece in several disbursements, starting with a first disbursement in June (€7.5bn) to cover debt servicing needs and to allow a clearance of an initial part of arrears as a means to support the real economy,” Eurogroup said in a statement.

The IMF has welcomed the deal with the fund's European chief, Poul Thomsen, saying, "We welcome that all stakeholders recognise that Greek debt is unsustainable. We welcome that it is understood that Greece needs debt relief to make it sustainable."