Greek Crisis: A Rescue Deal with Tough Conditions
Eurozone leaders have agreed to give Greece up to €86 billion ($96 billion) in fresh bailout loans that requires Greece to pass even tougher measures than the ones they rejected overwhelmingly in a referendum on July 5. The political climate and Greece’s severely worsening economy will make this a tough hurdle to overcome in order to remain in the Eurozone.
Many analysis fear that this program will be difficult for Greece to stick to and may be too much for it to bear, creating more political instability for the nation.
Among the bailout deal’s still pending issues is that Greece and the Eurozone still need an additional €4.2 billion for Greece to pay the European Central Bank by July 20- when a Greek bond debt falls due. Avoiding default is essential to reopening Greece’s banks.
Greece defaulted on a €456 million payment due to the International Monetary Fund earlier, increasing its debt by €2 billion. The IMF can’t lend any more cash to Greece until it clears its debts with the fund. Click here to see what Greece owes and when.