Greek bailout to cost state €1.3bn
The total amount of the joint eurozone-IMF loan will triple from the original sum of €45bn to €120bn to cover Greek’s borrowing requirements for the next three years. Up to €90bn of this will come from the eurozone member states as three-year loans with each country charging an interest rate of more than 5%, allowing them to make money from the deal.
Economics commissioner Ollie Rehn said that the loan “will be conditional on implementing on the decisions required to meet the conditions of fiscal consolidation and structural reforms”. He added that the financial support will give Greece a sufficient breathing space from the pressure of the financial markets to restore public finances and put the economy back on a path of sustainable growth.
