Greece and EU hammer out needed bailout agreement
BRUSSELS - Greece reached an agreement with European creditors Tuesday on economic measures it needs to introduce so it can get its next batch of bailout money, including a 10 billion-euro ($10.7 billion) cash injection for its crippled banks.
Though the Greek government had already made a number of the reforms required by its third international bailout, it balked at a few, notably a law making it easier to evict people in arrears on their mortgages and reduce banks' bad loans.
But without providing details,Pierre Moscovici, the European Union's top economy and finance official, said Greece and the creditors had reached a deal on all outstanding issues.
"I am happy to confirm that agreement has been reached on the remaining measures needed to complete the first set of milestones," he told a press briefing in Brussels.
"We expect finalization of the process to take place shortly following the swift adoption of necessary legislation by the Greek Parliament on Thursday," he added.
Once Greek lawmakers approve the measures, Moscovici said the institutions that oversee Greece's bailout program will assess Athens' compliance, paving the way for the cash disbursements.
Greece is due 2 billion euros ($2.2 billion) in loans as well as 10 billion euros for its banks, which are reeling from limits on money transfers and withdrawals and another likely recession.
Healing the banks is perhaps the most pressing concern for the Greek government. They remain badly hobbled by the crisis that played out over the country's euro future in the first half of the year. They need cash quickly so they can start operating normally.
Currently, concerns over the banks' health are so great that the government is still limiting cash withdrawals to 60 euros a day or 420 euros a week.
Last month, the European Central Bank said Greece's banks need 14.4 billion euros in fresh money to get back on their feet and resume normal business. That's actually lower than many had anticipated. Up to 25 billion euros is potentially available from the bailout to recapitalize the banks.
"This is a good day," said Moscovici.