EUROZONE-GREECE/DIJSSELBLOEM Eurogroup seeking 7 bln euros for Greece to keep IMF involved

Record ID: 146937

  • Title: EUROZONE-GREECE/DIJSSELBLOEM Eurogroup seeking 7 bln euros for Greece to keep IMF involved
  • Date: 16th July 2015
  • Summary: THE HAGUE, THE NETHERLANDS (JULY 16, 2015) (REUTERS) EUROGROUP PRESIDENT AND DUTCH FINANCE MINISTER JEROEN DIJSSELBLOEM SPEAKING WITH DUTCH PRIME MINISTER MARK RUTTE JOURNALISTS WAITING FOR DEBATE TO START DIJSSELBLOEM AND RUTTE SEATED VARIOUS OF DEBATE IN PROGRESS (SOUNDBITE) (Dutch) EUROGROUP PRESIDENT AND DUTCH FINANCE MINISTER, JEROEN DIJSSELBLOEM, SAYING: "As far as w
  • Embargoed: 31st July 2015 13:00
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  • Topics: General
  • Reuters ID: LVA43EZYQNSIORQZ6C8Y3YQHIY75
  • Aspect Ratio: 16:9
  • Story Text: The Eurogroup is seeking 7 billion euros of bridge financing for Greece from the European Financial Stability Mechanism (EFSM) for Athens to pay arrears to the International Monetary Fund so that the U.S.-based institution remains involved in future Greek bail-outs, the body's president said on Thursday (July 16).
    Jeroen Dijsselbloem, who is also Dutch finance minister, told an emergency session of the Dutch parliament that Greece will have to repay the amount it will receive from the EFSM, a fund of 13.2 billion euros, backed by the EU budget.
    "As far as we are concerned, we are seeking seven billion euros to be used as bridge financing, if Greece doesn't make it into the program because of failed negotiations, Greece still has to pay that seven billion," Dijsselbloem said.
    The 7 billion euros will be used to keep Greece afloat and enable it to make a crucial bond payment to the European Central Bank next Monday and pay off its arrears to the International Monetary Fund.
    Drawing funds from the EFSM requires the consent of all the European Union's 28 member states, including the nine that are not a member of the Euro currency area.
    Greece agreed to painful privatisation and fiscal adjustment measures last weekend in exchange for a third European Union bail-out for the debt-stricken economy, a week after Greek voters had rejected such a deal in a referendum.
    Dijsselbloem added it was crucial for the future of the country that investor return to the country.
    "Foreign investment in the Greek economy is not a liberal story, foreign investment into the Greek economy is badly needed," Dijsselbloem told Dutch lawmakers.
    Following a comment by European Central Bank president that debt relief measures would be necessary in Greece, Dijsselbloem said discussion on this matter would only take place should Athens pays its debts to its creditors.
    "Also here count the long-term conditions, Greece has to achieve budgetary surplus to continue paying off debts over the long term, and if they do that, there is possibility - and I will keep using the word 'possibility' until October - to receive measures for depth haircut," Dijsselbloem said.
    Earlier on Thursday, eurozone finance ministers agreed "in principle" to start negotiations with Greece on a new, 3-year bailout after the Greek parliament voted through a set of requested reforms.
    The Eurogroup decision will only take full effect after several eurozone parliaments, including Germany's Bundestag, have also granted approval for talks in the next day or so.
    The ministers also called on Athens to adopt a second set of reforms by Wednesday, July 22, and update the legislation related to the first set of measures it has adopted.
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