The Eurozone and Greek officials are near agreement on releasing bailout funds, after Greece has agreed to new austerity measures. Greece had a week to find an additional 325 Million euros in savings, which it did by slashing 100 Million from the military, and the remainder from public sector wages, health and social spending.
The Troika of the EU, IMF and ECB also wants a further 325 Million Euros in savings to be found this week. The measures had to be passed so that Greece can receive 14.5 Billion Euros in funding by March 20.
Greece has to repay its bondholders which include French, and German banks, and other private lenders such as hedge funds, pension funds and insurers.
The coalition government and the political parties backing it had come under intense pressure to put their commitment in writing to the cost-cutting demanded in return for rescue funds.
The latest bailout agreement also contains a private sector bond swap that will slice €100bn from the country's €350bn debt pile in the hope of bringing it down to 120% of GDP by 2020.
In last minute tweaks the interest rates that Greece has to pay on its bonds have been lowered. Some Dutch, Finnish and German politicians wanted the March 20 deadline to be pushed back until after the election in April.
Many Greeks view this as an overplay into their democracy and Chancellor Merkel of Germany agreed that the debt deal and release of funds should be part of one package and not split into two different deadlines. Without the release of funds by March 20 Greece will default and the disorder in the markets will cost far more than the 14.5 Billio euros the officials are haggling over.
Continue reading on Examiner.com Greek parliament approves new austerity measures - National European Finance | Examiner.com http://www.examiner.com/european-finance-in-national/greek-parliament-approves-new-austerity-measures#ixzz1mqEEIDos
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