Eurozone (Eurogroup) finance ministers announced that they have reached a deal with Greece on a second bail-out package. The basic elements of which are: The Commission will bolster its presence in Athens so as to provide technical assistance; Greece will put in place a mechanism to better trace and monitor the funds which are disbursed, in an apparent reference to an “escrow account.”;private sector bond-holders agree to a nominal ‘hair-cut’ on their holdings of Greek debt of 53.5%.
Eurogroup chairman Jean-Claude Juncker stated that the agreement provides a great support to Greece and aims to secure the country’s stay in the eurozone.
European Economic Affairs Commissioner Olli Rehn, said: “The Greek support plan is based on one strict condition: it provides the enhanced surveillance of Greece and the imposition of a permanent presence of the EC team”, aiming at providing aid to Greece in order to modernise the function of the State.
Finally, Christine Lagarde said that the plan must provide room for Greece to improve its competitiveness and that the process of the bonds exchange will start within the next few days.
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