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.