ISSN 2330-717X

Eurozone Sets New Conditions For Greek Bailout

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Eurozone finance ministers on Thursday night agreed to attach additional conditions to Greece’s 130-billion-euro bailout deal and postponed the final decision until next Wednesday, the meeting’s chairman said on Friday.

Finance ministers from the 17 euro countries met on Thursday night in Brussels for discussions on the bailout package for Greece, which is teetering on the brink of financial collapse.

“We did not have all the elements necessary for making decisions on the table today,” Jean-Claude Juncker, who chaired the meeting, said.

He named three requirements for Greece to secure the bailout: firstly, Greece needs additional 325 million euro ($432 million) in savings for 2012, secondly, the Greek parliament will have to pass the package of cuts and reforms and thirdly, Greek political forces should guarantee that the austerity measures will continue to be implemented regardless of the outcome of April’s elections.

“The final decision will be taken next week. The Eurogroup is to convene on Wednesday, it will be made if Greece complies with the terms,” Juncker said.

The announcement comes hours after Greek political leaders finally struck a deal on new austerity measures demanded by creditors to secure a 130-billion euro bailout to avoid default and keep the country afloat. The deal included pension and wages cuts.

The troika of international lenders comprising the European Central Bank, the European Commission and the International Monetary Fund demanded from Greece to introduce pension budget cuts as well as to cut additional income in private sectors, to reduce minimal wages and insurance payments.

Greece has been receiving financial support from the EU and the IMF since May 2010 to reduce the country’s large budget deficit. However, the austerity measures approved by the government have sparked numerous riots and strikes, and the Greek government has missed its targets.

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Ria Novosti

RIA Novosti was Russia's leading news agency in terms of multimedia technologies, website audience reach and quoting by the Russian media.

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