Greece agrees bailout deal ‘in principle’ with its creditors

Greece has agreed a new in principle multi-billion euro bailout deal with its creditors.

It was announced by the European Commission (EC) after series of marathon talks between Greece and its lenders in Athens.

In this regard a technical agreement has been reached between the EC and Greece. The agreement will now require political approval from the debt ridden country.

The bailout deal comprises a package of 85 billion euros over next three year. This agreement will keep Greece in the Eurozone currency and avert bankruptcy which may had led to a negative cascading effect on global economy.

Some key points of Greek bailout deal

  • Secures funding of around €85 billion for Greece to service its debt as well as to settle public payment delays and arrears over the next 3 years
  • Reduces fiscal surpluses of Greece for the next 3 years by 11% of GDP which curtail the decision of new austerity measures in the forthcoming period.
  • Recapitalisation of the banking sector of Greece. It will be completed by the end of 2015.
  • Provides €35 billion development package to debt ridden country which dubbed as the Juncker package.

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Categories: Business & Economy Current Affairs 2017International Current Affairs 2017

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