Eurozone to decide on 2nd Greece bailout on 20th Feb
Eurozone leaders to decide on 2nd Greece bailout on 20th Feb
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Greece
has made "substantial progress" towards fulfilling the conditions set
by the European Union and the International Monetary Fund (IMF) to
receive the proposed 130 billion euro (USD 170 billion) financial rescue
package, which was offered by the EU leaders last October to avert a
bankruptcy and to help stabilise the nations crippled economy.
"On
the basis of the facts that are currently on the table, I am quite
confident that the euro group can take the necessary decisions on
February 20," Juncker said in a press statement at the conclusion of a
three-hour conference call of the finance ministers.
Earlier,
the leaders of Greeces main political parties bowed to the pressure
from the EU and the IMF and sent to the European Commission their
written commitments that they will implement the latest austerity
package endorsed by the Greek parliament on Sunday night regardless who
will come to power after the parliamentary election in April.
This
was one of the conditions set by the EU and the IMF to approve the
second financial assistance package, which Greece needs urgently to
avoid a default on repaying 14.5 million debts due on 20th March.
The
Greek government met another condition by conveying to the EU exactly
how it will make additional savings to fill a gap of 325 million euros
in its planned savings this year.
The
governments controversial austerity package, which was passed by the
parliament in Athens amidst massive protests from the public and the
trade unions, seeks to save 3.3 billion euros this year through drastic
cuts in minimum wages and pensions, freezing of salaries and axing of
15,000 public sector jobs.
He said more work will be needed to strengthen the surveillance of how Greece will implement the austerity measures.
An
agreement between the Greek government and its private creditors on
reducing its massive debts by around 100 billion euros through a debt
buy-back scheme is still pending, but media reports said Greece may
announce a deal with its private creditors if the euro zone finance
ministers approve the second rescue package on Monday.
There
has been a basic understanding between the Greek government and its
private creditors on the proposed debt swap, but the extent of debt
write-down and some other many details are yet to be agreed upon, the
reports said.
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