Saturday, July 11, 2015

Greece Needs €74 Billion in Fresh Funding

Assessment comes from three institutions overseeing the eurozone bailout program

The Wall Street Journal

By GABRIELE STEINHAUSER and  VIKTORIA DENDRINOU
July 11, 2015 4:42 a.m. ET

BRUSSELSGreece will need €74 billion ($82.55 billion) in fresh funding, the three institutions overseeing the eurozone bailout program said in their assessment of the country’s request for a new aid package, according to three European officials.


The €74 billion could include €16 billion from the International Monetary Fund, should the Washington-based institution decide to participate in the new aid program, the officials said. A fourth official said some funding could come from Greece raising money on debt markets.

Two officials said the institutions—which, along with the IMF, include the European Commission and the European Central Bank—found Greece’s proposals for new overhauls and budget cuts to be a basis for negotiating a new bailout “under certain conditions.”

The development indicates some of the struggles that could lie ahead this weekend, when eurozone finance ministers and leaders meet to decide on how much money they are willing to commit to keeping Greece in their currency union.

The institutions’ assessment was sent to eurozone finance ministries Saturday morning.

In the early hours on Saturday, Greece’s Parliament passed the new proposal, which included cuts to pensions and tax increases, with the backing of 251 out of 300 lawmakers.

The vote was supported by center-right and center-left opposition parties, while 17 lawmakers from Prime Minister Alexis Tsipras’s own left-wing Syriza party failed to support their own government, with two voting against Mr. Tsipras and others abstaining or staying absent.


Write to Gabriele Steinhauser at gabriele.steinhauser@wsj.com and Viktoria Dendrinou at viktoria.dendrinou@wsj.com

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