Greek bailout deal reached in Brussels

Ultimately, it took the ministers 14 hours to conclude the talks in Brussels, with a sum of 130 billion euro (542.3 billion zloty) agreed on for the bailout. When the participating ministers finally wrapped up the talks at 4.20 am GMT, Jean-Claude Juncker, current Prime Minister of Luxembourg and chairman of the group of Euro zone finance ministers, expressed his optimism about the deal. “This new programme provides a comprehensive blueprint for putting the public finances and the economy of Greece back on a sustainable footing and hence for safeguarding financial stability in Greece and in the euro area as a whole,” he said at the early morning press conference.

“The European economy is not yet strong enough to be able to play with the idea that you can allow for Greece to go bankrupt,” Finance Minister Jacek Rostowski told Polish Radio.

The deal will allow Athens to set in motion a bond swap with private investors, and approximately 100 billion euros of debt (417 billion zloty) will be cancelled out as banks and insurers exchange bonds.

Although Greek Prime Minister Lucas Papadermos championed the deal as marking a “historic day”, the bailout will be dependent on further austerity measures for the country, thus raising the spectre of further civil unrest in Greek towns and cities. (nh)

Source: IAR

Greek Prime Minister Lucas Papademos (R) chats with International Monetary Fund (IMF) Managing Director Christine Lagarde at a Euro Group finance ministers council at the EU headquarters in Brussels. Photo: PAP/EPA/OLIVIER HOSLET.

Cover: President of the Euro group Luxembourg's Prime Minister Jean-Claude Juncker arrives at a Euro Group finance ministers council at the EU headquarters. Photo: PAP/EPA/OLIVIER HOSLET