EU Cuts $7.8B Check to Avert Greek Collapse

     (CN) – EU lawmakers on Friday approved a $7.8 billion bridge loan for Greece, which will allow the beleaguered nation to reopen banks and avoid defaulting on the previous bailout.
     The short-term bridge loan, approved by the Council of the European Union, comes after Greek lawmakers passed the sweeping tax increases and pension reforms EU leaders had demanded as conditions for another bailout of the Hellenic Republic, its third since 2010.
     Without the bridge loan, Greece’s banks – which have been closed for weeks – would have failed, and the nation would have missed another payment to the International Monetary Fund and European Central Bank for the previous bailouts.
     Greek lawmakers have until July 22 to pass a complete overhaul of its civil justice system before leaders of the nations that use the euro – known as the Eurogroup – will consider final approval of the latest bailout.
     Money for the 90-day bridge loan will come from the European Financial Stability Mechanism, an emergency funding program backed by all 28 member states of the EU and administered by the European Commission.

%d bloggers like this: