Financial Times
June 3, 2011
The three international organisations responsible for Greece’s €110bn rescue programme are expected to release the next tranche of bail-out payments to Athens next month, the clearest sign yet that leaders are close to the second bail-out of Greece in 13 months.
The decision to release the funds, which must still be approved by political leaders in Europe and the board of the International Monetary Fund, came after a month of negotiations with the Greek government, which agreed to yet another set of austerity measures, including “significant” sacking of government workers.
The measures must still be approved by the Greek parliament, where George Papandreou, prime minister, has struggled to get cross-party support. But the commitment by the international lenders to release new funds means they believe they can soon cut a deal on an additional €60bn in financing for Greece to meet shortfalls next year, which had threatened to push Athens into default.
In a two-page statement issued after the end of talks in Athens, negotiators for the IMF, the European Commission, and the European Central Bank said they expected the next €12bn payment “will become available, most likely, in early July.” The euro and Greek bonds rallied immediately after the deal was announced.
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