Debt deal done, now come the tranches

 

The first tranche of 43.7 billion is expected to come by December 13, but the process of disbursement is inextricably linked to Greece's progress in structural reforms.

 

The start will be made with 34.4 billion euros. 31.2 billion will be provided by the partners by December 12 or 13 and will relate to credits towards banks and funds from the EFSF, will be put in a special blocked account and will be for payments of 3.5 billion in state debts to Greek enterprises.

 

The IMF will meet a few days earlier to give another 3.2 billion euros as long as the repurchase program of Greek bonds from the secondary market at the very low prices of November 23 has advanced.

 

The remaining 9.3 billion will be provided partially by the end of March, if Greece honors the nearly 70 commitments. Lenders pay particular attention to the new tax bill that must be voted on by January.

 

"Everything went well," Antonis Samaras said, welcoming the agreement reached in Brussels.

 

Stournaras: Greece plans to complete the debt repurchase by December 13

 

Speaking after the meeting of European ministers, Finance minister Yannis Stournaras spoke about the difficulty of the negotiation and its importance for Greece.

 

He talked about a decision that keeps Greece in the euro, that the government plans to complete the repurchase of the debt by December 13 and that Greece will repurchase its debt with a loan from the Eurozone (EFSF).

 

He added that today's decision frees up resources by reducing interest rates on Greece’s loans from Eurozone countries and the European Financial Stability Fund. "Greece is now a country borrowing at very low rates compared to other countries in the Eurozone."

 

Continuing, the minister said that it is time for Greece to consider how to utilize this great opportunity to move forward, and that structural changes passed by the Greek parliament should be implemented to improve competitiveness and promote financial stability. Also he stated that Greece should proceed with the privatizations and build an effective social state, with emphasis on equal opportunities for all.

 

Regarding the issue of repurchasing Greek bonds with loans from the EFSF, which will be launched by December 12, the minister was very parsimonious about the amount of the loan and the interest rate.

 

In conclusion, Stournaras thanked Antonis Samaras for his help in the effort, saying that without the decisive contribution of the PM the 72 prerequisite steps for the disbursement of the tranche would not have been promoted.