IMF approves $ 1.8 billion bridge loan for Greece

The International Monetary Fund (IMF) today announced the approval of a $ 1.8 billion (1.6 billion euro) bridge loan for Greece, giving a boost to the rescue plan for the Greek economy.

The approval by the IMF Executive Committee of this “precautionary” credit agreement was announced this afternoon after two years of speculation as to whether the lender would participate in the Greek bailout program, one of the requirements that had been put by the partners and Creditors of Athens.

The contingency loan, which the IMF points out that it responds to a “principle of agreement” is equivalent to 1.3 billion special drawing rights (the nominal currency of the IMF), that is, 55 percent of the quota that Greece has in the Agency, stressed the institution.

In its brief statement, the IMF did not specify the requirements it will require Greece to disburse the loan.

The IMF has previously insisted on the need for the Greek bailout program to be accompanied by debt relief arrangements with Athens’ creditor countries.

The Greek authorities have expressed their intention to be able to re-access the international credit markets in 2018.

Today, European Central Bank (ECB) President Mario Draghi highlighted the “significant progress” made by Greece and, given the caution expressed by the Greek authorities, said that it is Athens who must decide whether to return to the capital market.

The ECB stopped accepting Greek debt as collateral in its refinancing operations in mid-February and since then Greek banks have relied on the more expensive emergency liquidity.

The financing of the Greek debt has become increasingly complicated because, given its magnitude, it is considered that in the end it will not be able to be paid in full without Athens agreeing to settle with its creditors.

Leave a Reply

Latest

6-3. Reyes connects pair of home runs and Padres beat Mariners leaders

 San Diego (USA), .- The Ranger Dominican Franmil Reyes showed the power of his battery and hit home runs for the San Diego Padres,...

The bitter victory of the Democrats in America

Trump's uncertainty and belligerence cloud Biden's victory, which may find Congress less favorable than he expected The Democratic Party had the polls in its favor...

FCC negotiates with IFM the sale of 49% of Aqualia

FCC is negotiating the sale of 49% of its subsidiary Aqualia, specialized in water management, to the IFM Global Infrastructure Fund, the construction and...

This is how you can calibrate your television to get the most out of it: from ‘cinema mode’ to smart sound

Televisions have taken a huge leap in quality in recent years, with changes that are perceived at first glance, such as the size of...

USA says he will not change his policy toward Cuba under Castro’s successor

The White House said today that it will not change its policy of restricting trade with Cuba under the successor of Raul Castro, and...
%d bloggers like this: