EUROZONE-GREECE/EUROGROUP-SAPIN French Finance Minister hopes third Greek bailout deal will stick

Record ID: 143908

  • Title: EUROZONE-GREECE/EUROGROUP-SAPIN French Finance Minister hopes third Greek bailout deal will stick
  • Date: 15th August 2015
  • Summary: BRUSSELS, BELGIUM (AUGUST 14, 2015) (REUTERS) JOURNALISTS WATCHING NEWS BRIEFING SAPIN SPEAKING / BACKGROUND READING (French): "COUNCIL OF MINISTERS – BRUSSELS"
  • Embargoed: 30th August 2015 13:00
  • Keywords:
  • Location: Belgium
  • Country: Belgium
  • Topics: General
  • Reuters ID: LVA9B37I16DHRXQTUCSHM2W2084D
  • Aspect Ratio: 16:9
  • Story Text: French Finance Minister Michel Sapin said Friday (August 14) at the close of a Eurogroup meeting that he hoped the third bailout agreement for Greece would be the last.
    Finance ministers from the eurozone gave their final blessing on Friday to lending Greece up to 86 billion euros ($95.5 billion) after the parliament in Athens agreed to stiff conditions overnight.
    "The third program, which France hopes will be the good one, the one that allows Greece to rediscover growth, to rediscover activity and to rediscover perspective and from that moment on to rediscover what will give its people, and particularly its young people, back the capacities in terms of jobs and their futures, which are essential. In short, to give Greece back its self-confidence," Sapin told reporters at a news briefing in Brussels.
    Assuming final approval next week by the German and some other national parliaments, an initial tranche of 26 billion euros would be approved by the European Stability Mechanism (ESM) next Wednesday.
    Of that, 10 billion euros would be reserved to recapitalise Greek banks ravaged by economic turmoil and the imposition of capital controls in June, and 13 billion euros would be in Athens on Thursday to meet pressing debt payment obligations.
    Sapin admitted that much time had been wasted since negotiations began, but that all parties were optimistic that success was possible this time around.
    "For too long, too much time has been wasted. Even though France has since the beginning has expressed its engagement, availability and willingness to be -- I've used this term since the first week -- a hyphen between Greece and the other European countries to help lead to the best agreement possible," he said.
    Sapin noted a calm and cooperative spirit among ministers during the meeting, and a reigning optimism that has won over even some of the staunchest opponents to the bailout, including Germany's Wolfgang Schaeuble.
    "There is really a very calm, serene and positive spirit today. If I can use a grand term, I think there's been a renewed confidence between the European finance ministers and the Greek government, and this trust is vital," Sapin said.
    Some issues still need to be ironed out following a deal struck with Greece on Tuesday by the European Commission, European Central Bank and International Monetary Fund.
    They include keeping the IMF involved in overseeing the new eurozone programme while delaying satisfying the Fund's calls for debt relief for Greece until a review in October.
    IMF Managing Director Christine Lagarde, who took part in the meeting by telephone, made clear she could give no commitment before approval by the IMF board in October, Eurogroup President Jeroen Dijsselbloem told reporters.
    The Washington-based IMF, which has lent to Greece itself and played a role in supervising the implementation of two previous bailouts worth a total of 240 billion euros, has urged the other 18 states of the eurozone to give Athens debt relief in order to help revive its crippled economy.
    Many eurozone governments have ruled out any "haircut" on the nominal amount of debt - something against current eurozone rules - and have questioned the IMF assessment of how much relief Greece needs, saying it is too pessimistic.
    However, the bloc is keen to have the IMF, whose imprimatur is prized in financial markets, closely involved in managing the Greek programme.
    The eurozone has agreed to look at easing terms, such as by lengthening repayment deadlines, once a first review of Greek compliance with conditions is completed in October. The IMF, though, has made clear it sees debt relief as essential for giving the Greek economy the means to service the new loans.
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