Greece gets bailout: Greece Debt Crisis
Published: July 13, 2015
Greece gets bailout: Greece Debt Crisis, Greece agreed to a deal with its European creditors on Monday after long and bitter negotiations, swallowing substantial new concessions in the face of imminent financial collapse and insistent demands from Germany and other countries that it prove it was worthy of a third bailout in five years.
The agreement, announced after a contentious all-night session among leaders of the 19 nations that use the European common currency, requires Greece to move quickly to adopt a host of economic policy changes and to allow close monitoring by Europe and the International Monetary Fund.
If Prime Minister Alexis Tsipras can push the central elements of the package through his Parliament in the coming days – a political challenge likely to prove difficult – the creditors said they would be willing to open negotiations on providing as much as 86 billion euros, or $96 billion, to keep Greece afloat for the next three years, and to consider proposals to ease repayment terms on much of Greece’s existing debt of more than â‚¬300 billion.
The creditors also agreed, once terms of the bailout are settled, to pull together a short-term stimulus program of up to â‚¬30 billion to help Greece’s ravaged economy.
To Germany and other nations that went into the negotiations fed up with Greece’s inability to get its financial act together, the outcome was fair and the new requirements necessary to assure that the Athens government lives up to its commitments. But to some Greeks, and to critics of the German-led policy of imposing deep budget austerity as a condition for aid, the deal amounted to an unwarranted violation of Greece’s sovereignty.
Either way, it appeared to remove the immediate threat of Greece’s financial crisis escalating to the point that the country might be forced to abandon the euro as its currency. By Monday afternoon, the European Central Bank had signaled that it would leave its credit line to Greece’s banks in place at its current level, leaving the banks, which have been closed for two weeks, in severe distress but likely to muddle through until a bailout deal can be finalized.
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