‘Historic’ Debt Relief Deal Hailed By Greece

The long-awaited debt relief deal for Greece to which the Eurozone countries have agreed to has been hailed as “historic”.

The deal enhances the grace period for which Greece will pay little or no interest and also allows Athens greater time to repay €96.9bn (£85bn) of loans.

The deal is a signal that Greece was turning a new page, said Greek Finance Minister Euclid Tsakalotos.

The deal meant “the Greek crisis ends here”, said EU Economic Affairs Commissioner Pierre Moscovici.

And to help Greece to keep paying its bills, a last cash loan of €15bn is being given by eurozone governments according to the deal.

The current bailout program for Greece is set to come to an end in August

Because of the huge budget deficits of Greece, financial markets had lost confidence in the country in 2010 and it was then that it was given three bailout programmes.

There were doubts and debates of whether Greece should remain within the eurozone, as well as about the future of the eurozone itself because of the ensuing financial crisis.

A series of tough economic reforms has had to be initiated by Greece in exchange of the bailouts. There was a shrinking of its economy and surging employment as a result of the immediate outfall.

Greece still has a huge problem of serving its of its accumulation of debts which has touched about 180% of its GDP despite the fact that the problem of its economy has now stabilized.

He e thought it was “the end of the Greek crisis”, said Tsakalotos while speaking after the latest debt relief deal was agreed.

“I think Greece is turning a page,” he said. “I think that it has all the building blocks there to leave the programme with confidence that we can access the markets, that we can implement our growth strategy and turn the agenda away from one of fiscal adjustment, which has been completed, to one of growth.

“So I think it is a historic moment as people have said, a momentous moment.”

EU commissioner Pierre Moscovici said: “The Greek crisis ends here tonight.

“We finally got to the end of this path which was so long and difficult, it is a historic moment.”

While expressing worries about the long-term situation, the International Monetary Fund (IMF) welcomed the third bailout program. the IMF did not participate in the third debt relief.

“In the medium-term analysis, there is no doubt in our minds that Greece will be able to reaccess the markets,” said IMF managing director Christine Lagarde.

“As far as the longer term is concerned, we have concerns,” she added.

(Adapted from BBC.com)


Categories: Economy & Finance, Geopolitics, Sustainability, Uncategorized

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