Greece secures debt relief from eurozone after delay

A European Union flag (left) and a Greek national flag flutter as the sky is reflected on a building front in Athens February 17, 2015. — Reuters pic
A European Union flag (left) and a national flag flutter as the sky is reflected on a building front in Athens February 17, 2015. — Reuters pic

BUCHAREST, April 5 — Eurozone finance ministers released long-delayed debt relief to Greece today, saying the government had implemented reforms promised during the massive bailout that ended last year. 

Greece exited its third and final international bailout in August, a turning point in its progress out of the catastrophe that engulfed the country during the debt crisis.

But the Greek government had failed to complete politically sensitive reforms such as changes to housing foreclosure rules that spooked families struggling with mortgages on their homes.

“All in all, Greece has done what was necessary to respect its commitments. The decision gives a new, very strong signal to the markets,” said EU Economics Affairs Commissioner Pierre Moscovici after talks with ministers in Bucharest.

In a statement, the Eurogroup of eurozone finance ministers accepted the view that “Greece has taken the necessary actions to achieve all specific reform commitments.”

This meant that the “conditions are in place” to unlock debt relief measures worth 970 million euros, the statement said.

The debt relief measures are mainly profits made by the European (ECB) and other EU central banks on Greek government bonds during the bailout period. 

The decision comes as hopes rise that Greece has turned the economic corner. Last month Athens issued a 10-year , the first major borrowing effort since its debt crisis.

The country hopes to raise a total of around nine billion euros in the markets this year to boost investor confidence in the Greek economy. 

Growth is expected to reach 2.4 per cent in 2019 after an estimated 2.1 per cent in 2018, according to the latest International Monetary Fund (IMF) projections. — AFP

Source: The Malay Mail Online

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