Troika Loans Pour Into Poor Greece

euro notesIt’s been a long time coming, but Greece is expected to get all of a first series of 34.3 billion euros ($45.2 billion) loan installment from its international lenders by Dec. 19, a Greek official said on Dec. 18, hours after an initial payment was carried out. “The full amount should arrive by Wednesday,” the official told AFP on condition of anonymity.

“A payment of seven billion euros ($9.2 billion) was made on Monday (Dec. 17) There will be another 11.3 billion euros for debt buyback plus 16 billion euros to recapitalize Greek banks,” he added. Following a decision by European leaders last week, another 14.8 billion euros from Greece’s ongoing bailouts from the Troika of the European Union-International Monetary Fund-European Central Bank (EU-IMF-ECB) is to be disbursed in the first quarter of next year.

Greece had been denied bailout funds since June owing to reform delays and a protracted electoral campaign that created uncertainty about the future of its promised fiscal overhaul. The recession-hit country urgently needs the money to settle a 31.9 billion euro ($42 billion) debt buyback carried out last week that will knock 20 billion euros ($26.3 billion) off its debt load. Greek banks need an injection after suffering big losses when  a former government imposed 74 percent losses on investors and financial institutions holding Greek bonds.
(Source: AFP)