Open

Coming up

Don't miss

Replay


LATEST SHOWS

AFRICA NEWS

A landslide victory for the 'invisible candidate' in Algeria's Presidential polls

Read more

THE WORLD THIS WEEK

The World This Week - 18 April 2014

Read more

THE WORLD THIS WEEK

The World This Week - 18 April 2014 (part 2)

Read more

MEDIAWATCH

Presidential adviser resigns over "shoe-shine scandal"

Read more

#THE 51%

Breaking stereotypes

Read more

#TECH 24

Galaxy S5 v. HTC One (M8): Which is the right one for you?

Read more

FRANCE IN FOCUS

New PM Manuel Valls outlines priorities

Read more

FASHION

Jean-Marc Loubier, bags and shoes.

Read more

ENCORE!

Hip-hop musician Beat Assailant on mixing the sounds of the city

Read more

  • Bouteflika, the ghost president

    Read more

  • Police arrest S. Korea ferry captain for negligence

    Read more

  • Ukraine separatists say ‘not bound’ by Geneva deal

    Read more

  • Algeria's ailing Bouteflika clinches fourth term amid fraud claims

    Read more

  • Does Valls’ upcoming Vatican trip violate French secularism?

    Read more

  • Obama signs bill to block controversial Iran diplomat from UN post

    Read more

  • Abel Ferrara’s hotly awaited DSK film to premiere on web

    Read more

  • World honours Garcia Marquez’s magical literary legacy

    Read more

  • Ukraine: ‘One bloody incident could scupper Geneva deal’

    Read more

  • Top Hollande adviser resigns over conflict of interest accusation

    Read more

  • Indian election: Votes for sale

    Read more

  • West African Ebola outbreak caused by new strain of virus

    Read more

  • Astronomers discover Earth-like planet that could support life

    Read more

  • Video: Tensions remain high in Mariupol despite Geneva deal

    Read more

  • In Prijedor, survivors fight to keep memory alive

    Read more

  • Deadly avalanche strikes Everest in worst-ever disaster

    Read more

  • With a strong French presence, veterans and fresh faces, Cannes aims to please

    Read more

  • Russia and West agree on steps to ease Ukraine crisis

    Read more

  • Mob launches deadly attack on UN shelter for S. Sudan civilians

    Read more

  • Eurostar train mishap causes 'severe' delays

    Read more

  • Chelsea Clinton announces she's pregnant

    Read more

  • French troops free five aid workers kidnapped in Mali by Islamists

    Read more

  • In pictures: Iranian woman pardons son’s killer at the gallows

    Read more

  • After cup defeat, Spanish pundits read last rites for Barcelona

    Read more

  • India heads to polls in single largest day of voting

    Read more

Europe

Eurozone agrees to first instalment of Greek bailout

©

Text by News Wires

Latest update : 2012-03-01

Eurozone finance ministers agreed Thursday to give Greece the first instalment of a multibillion-euro bailout package but said agreement on the final portion, which Greece needs to finance a debt swap with private investors, would come next week.

AP - The finance ministers of the 16 other countries that use the euro on Thursday agreed in principle to give Greece a first batch of bailout money to finance a massive debt relief deal with private investors.

However, the final green light for as much as €93.5 billion ($125.69 billion) -- which Greece needs to implement the debt swap -- will come next week.

After a three-hour meeting in Brussels, the ministers said the payout can go ahead once Athens has passed “a few pending implementing acts” for promised austerity measures and the ministers how many banks and investment funds will actually participate in the bond swap.

A successful implementation of the €107 billion ($143.84 billion) debt relief deal with private bondholders is a precondition for Greece to receive the rest of the €130 billion bailout.

Private investors have until next Thursday to decide whether they will swap their Greek bonds for new ones with a lower face value, lower interest rates and longer repayment periods.

Overall, bondholders will lose more than 70 percent of the value of their holdings, but in return they will receive some of the money they are owed immediately and have at least the hope that they will get some more of it back in 30 years. Without the debt relief deal and the new bailout, Greece would have defaulted on its debts within weeks, potentially sending ripples across the world financial system.

Of the €93.5 billion Greece needs in the coming weeks, as much as €35.5 billion are immediate payouts for banks and other investors participating in the bond swap.

Around €23 billion will be used to recapitalize Greek banks that would otherwise collapse under the losses from the debt relief.

The remaining €35 billion will go as collateral to the European Central Bank while Greece’s own bonds are rated in selective default. That money will be freed up again once Greece’s rating improves.

 

Date created : 2012-03-01

  • GREECE

    Greece secures new bailout, but recovery still in doubt

    Read more

  • GREECE

    Bailout faces overhaul as Greek economy 'much worse' than thought

    Read more

  • GREECE

    Eurozone agrees second €130bn Greek bailout

    Read more

Comments

COMMENT(S)