Sunday, June 19, 2011

Greece Looks to European Colleagues for a Lifeline

New York Times
June 19, 2011

Seeking to avert default by Greece, Europe’s finance ministers are expected on Sunday to promise an immediate financial lifeline to the Athens government and to start crafting a second rescue package for the debt-laden country.

At a meeting in Luxembourg on Sunday night, the 17 countries in the euro zone are likely to pledge the release of the next 12 billion euro or $16.8 billion installment of a $155 billion loan package that Athens received a year ago. Finance ministers will also grapple with the complex task of designing another package of financial assistance that would include private sector involvement — but not on terms that would be classified as a default.

Diplomats hope that an agreement to release the next installment of aid will send a strong signal to the financial markets that the European Union is ready to stand by Greece.

As finance ministers gathered, Prime Minister George Papandreou of Greece opened three days of parliamentary debate in Athens , which will end Tuesday night with a confidence vote in Mr. Papandreou’s new Cabinet, which features Socialist veteran Evangelos Venizelos as the new finance minister.

More

No comments: