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European Commission proposes €7bn Bridge Loan to Greece for July

The European Commission is proposing to give a 7 billion euro bridge loan to Greece in July so that the country be able to meet its obligations to the European Central Bank and to the international Monetary Funds. According to EC proposal, Greece could get the loan in “one go”, the EU finance ministers could approve it already today Wednesday. EC’s main precondition is that a set of prior actions of the 3. bailout program are passed in the Greek Parliament also today.

The European Commission is proposing to give a 7 billion euro ($7.7 billion) bridge loan to Greece to cover the country’s financing needs in July using the European Financial Stability Mechanism (EFSM), according to document from the EU executive.

The proposal, seen by Reuters, says the bridge loan would have a maximum maturity of 3 months and would be repaid to the EFSM from money that Greece is to get from the euro zone bailout fund, the European Stability Mechanism (ESM) on the conclusion of negotiations on the next, 86 billion euro three-year bailout.

The proposal to use the EFSM for the bridge loan is controversial because Britain and the Czech Republic are strongly opposed to it. (full article Reuters)

Greek lawmakers started to debate the first set of “prior actions” on Wednesday morning, the voting is expected to take place late today. It is expected that more than 30 SYRIZA MPs  will not vote in favor of the bill, Alternate Finance Minister Nandia Valavani submitted her resignation a couple of hours earlier.

PM Tsip0ras is expected to win the voting with the support of three opposition parties. But his government will lose the majority in the Parliament.

 

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10 comments

  1. They just carry on as before with this shit of “lending” money to Greece to make repayments to the same institutions as are lending the money to make the repayments. This is just insanity. These people need to be locked up, for the good of Europe.

    • Giaourti Giaourtaki

      And they still called it bailout, there must be LSD in the water

      • I am not sure why you disagree this financial aid should be called a bailout. If there is no ECB payment on July 20 (which this money will go towards), ECB will be required by its own rules to cancel the ELA. Not just freeze the existing ELA limit (as is the case now), but truly cancel the ELA. So without this new money, both the Greek banks and government will be insolvent. That in turn will prevent the Greek banks from rolling over their existing holdings of short-term Greek government debt. The accounts in the banks will need to be applied towards the banks’ obligations; no more disbursing the 60 euro / day from the ATMs or 120 euro / week for pensioners. If preventing that is not a bailout of the Greek government and banks, I am not certain what else qualifies.

        • Giaourti Giaourtaki

          This is also no aid, it’s the opposite, social genocide and it’s sell-out to ugly and greedy German and other rich scum of the earth, it destroys Greece and Greece is also not the Greek government or the Greek banks, the money is stolen with the help of ECB, minimum 125 billion savers money is gone, stolen out of the banks while the embargo goes direction its 4th week.
          I don’t care about your bloodsuckers money-“rules” as the Euro is pirate-money anyway, the ECB has no right to put up any rules as only states with a constitution are allowed to print money and any other system printing that is dictatorship or Mafia, so in the end there are not even any rules of ECB existing and there is no right to not let the people get their cash out of the banks. Anybody who died because of this sanctions will hopefully find justice in bloody revenge, as this is just the beginning and in the end not even a rescue for the government as the system now found many more enemies.

        • If I kidnap you and keep you my prisoner in your attic, but after a few days, i decide you are allowed to go to the toilet, would you call that a “rescue”? Because that’s exactly what’s going on here: the hardship on perfectly sane banks was created by the ECB on purpose as a way to break the Greek government. The fact they now might release their grip is just an indication that they have won. Nothing else.
          As for the ECB “rules, you made that up: the ECB paiement has nothing to do with ELA or ELA limits. ELA was decided on punitive purpose long before the Greek government default on any thing. The rules of the ECB are that it has to act as the lender of last resort (which it chose not to do), that it has ensure financial stability (which it chose not to do) and that its monetary policy should lead to full employment (which is such a failure throughout all the continent that it’s laughable)
          The ECB broke all its rules and failed all its mandates.

  2. Giaourti Giaourtaki

    The same scheme like the last years instead of voting against resign

  3. It appears U.K. is still resisting the use of EU-28 money (EFSM) as a bridge loan for Greece, insisting it should be only 19 Euro zone countries that take the risk. It’s interesting that EZ (and Germany most of all) gets all the Greek hatred, yet in the end they have to come up with the cash to help Greeks.

    Hopefully, U.K. will relent and the bridge loan will be provided shortly.

    • Just saw reports that the bridge loan has been “agreed in principle” and should get announced tomorrow.

    • Giaourti Giaourtaki

      They refused Greece to finish the program in 2014 and they’ve stopped the money of this program in the summer of 2014. Why? Very simple: They were observing that the Greek tourism was getting competitive because of the lower VAT and this they don’t like as the recovery of the typical Greek tourism with family run small businesses hinders the big biz of TUI and Neckermann to steal Greece away as Disneyland for Herrentourists; for them it’s a crime against humanity that they can’t get Curry-Wurscht on Crete