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.