After several months of tough negotiations, additional austerity measures and crucial delays, the finance ministers of the euro zone approved the disbursement of 52.5 billion euro bailout funds, consisting of three tranches due in 2012. The mammoth fund will be given to Greece in three tranches: the 34.3 billion euro to be released in the following days – most likely upcoming Monday -, with the rest to follow in the first quarter of 2013.
49.1 billion euro will be given by the EFSF and 3.4 billion euro will be given by the IMF.
Klaus Regling, (ESM &EFSF)
“After the approval by the Eurogroup today, the EFSF is prepared to make available to Greece 49.1 billion euros between now and the end of March.
“Within this envelope of 49.1 billion between now and the end of March, we will disburse immediately in the next few days 34.3 billion. This has three elements… 16 billion euro for the bank recapitalisation and bank resolution, 7 billion for budgetary financing and 11.3 billion euro to finance the debt buyback.” (more official statements Reuters)
Of course, under the condition that the debt-ridden country will stick to its commitments for structural reforms, implementation of strict austerity, revenue increase and tight budget.
34,4 billion: 16 bn bank recapitalisation + 7 bnll budgetary financing (to state to pay debts to suppliers & pay lump sums to civil servants) + 11.3 bn financing debt buy back (banks)
As the bailout money will go directly or indirectly to banks, for the moment, it’s only a rumor that bankers will rush to Athens airport on Monday to welcome the first bailout disbursement.
PS equally indifferent to the joyous news reacted not only the average Greek but also the Athens Stock Exchange, that fell -1.53 percent.
*LOL* When is that first deadline for the first structural reform to be implemented? I see countless crisis meetings on the horizon. 😀
deadline is every time next tranches to be released lol