Source: PressTV
Eurozone countries
have finally approved the second 130 billion euro financing package for
Greece, which would save the country from going bankrupt in the short
run.
"Euro area member states have today formally approved the second
adjustment program for Greece," Luxembourg Prime Minister and the
chairman of the eurozone finance ministers, Jean-Claude Juncker said in
a statement on Wednesday.
Juncker said that the European Financial Stability Facility (EFSF)
has been authorized by eurozone governments to release a "first
installment" of 39.4 billion euros to Greece under the scheme, to be
disbursed in several tranches.
Junker described the financial aid as "a unique opportunity for
Greece that should not be missed," and said that a "strong commitment"
from Athens to "fiscal consolidation, structural reforms and
privatization" was required to return the Greek economy "to a
sustainable path, which is in the interest of everyone."
In order to receive the bailout fund, which is funded mostly by
eurozone countries and the International Monetary Fund, Greece had to
adopt harsh austerity measures including massive cuts to its private and
public sector wages, pensions, health and defense spending.
Greece has the highest debt burden in proportion to the size of its
economy in the 17-nation eurozone. Despite austerity cuts and the
bailout funds, the country has been in recession since 2009.
Greece’s first bailout, which was approved by Eurozone finance
ministers on May 2, 2010, was worth 110 billion euros (147 billion
dollars).
Despite numerous austerity cuts implemented by the government and
bailout funds provided by international lenders, which are aimed at
stimulating growth, Greek economy has continued to contract and is not
expected to show expansion until 2013.
