Europe could lend debt-stricken Greece up to 30 billion euros (40 billion dollars) under a contingency package agreed on Sunday in a bid to restore investor confidence in the continent’s economy.
The EU’s Economic and Monetary Affairs Commissioner Olli Rehn said the loans would have an interest rate of around five percent, significantly lower than the market rate which Greece has so far been forced to pay.
The Greek government welcomed the announcement but stressed that no request to activate the debt support had been made.
“The total amount put up by the eurozone member states for the first year will reach 30 billion euros,” Luxembourg Prime Minister Jean-Claude Juncker, head of the 16-nation eurozone’s group of finance ministers, told a joint press conference with Rehn. Related article: Greece ditching Euro ‘a joke’: PM
Juncker said the financing would be “completed and co-financed by the International Monetary Fund” but did not give further details.
The IMF’s role — which would be unprecedented for a eurozone member state — is due to be the focus of talks starting on Monday, Rehn said....Continue ReadingLeave a Comment