Tuesday, February 21, 2012

Video Transcription: Eurozone Ministers back 130bn- Euro bailout for Greece


Eurozone ministers back 130bn-euro bailout for Greece

We are making every effort so that the new programme will be a success and we will no longer be subject to recurrent slippage.  This will require resolute actions from all sides including the commission who will reinforce the task for Greece, in particular on the ground in Athens in order to ensure that Greece has the institutional means to carry out the new programme successfully.

The ‘Troika’ will substantially reinforce its presence in Athens in order to be able to kill any slippage, coordinate with the task force for Greece will also be reinforced.  Greece has announced that it aims to increase the concept of absolute priority of debt service payments in its legal framework in the next coming two months and later on its constitution.  This is something that Spain, for example has already done and this should encourage the return of investor confidence.  In the meantime, a mechanism will be put in place that better trace and monitors the funds invested with Greece’s debt.  In fact an amount corresponding to the coming quarters debt service should be paid directly to a segregated account in Greece’s paying agent.

On the basis of these elements and subject to the implementation of prior actions Europe Aid member states will stand together to provide the IMF additional provision programme financing of up to 130bn until 2014.
Member states should now launch the relevant national procedures to allow for the provision of ESFS of the necessary financing.  We convene at the beginning of March once the offer is closed and once Greece has complied with the prior actions agreed for end February in order to examine the way forward and proceed with the exchange and launch the second progamme for Greece.  

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