Brussels (MNI) – The Eurozone finance ministers late Monday gave
their political endorsement to a new rescue package for Greece worth
about E130 billion, Eurogroup President Jean-Claude Juncker said.

Juncker, speaking at a late-night press conference after the
Eurogroup met here, revealed that a report by Greece’s official sector
creditors on the sustainability of Greek debt estimated that with the
successful completion of the private sector bond swap (PSI), the
country’s debt ratio will fall to 117% of GDP in 2020, comfortably below
the initial target of 120%.

“We agreed that this better-than-expected outcome should not be
spent by Greece [to compensate creditors] but be kept as a buffer,”
Juncker said. He noted that Greek Finance Minister Evangelos Venizelos
had assured his counterparts that no compensation, direct or indirect,
would be given to bond holders.

“This will avoid receiving complaints by the thousands,” he
explained.

On Wednesday, the European Working Group, a group of senior
Eurozone finance officials just below minister level, will convene to
review whether all national procedures are in place for the signing of
the second rescue for Greece. After the IMF board of directors’ meeting
on Thursday, all elements should be in place for the official launch of
the E130 billion lending agreement.

Juncker said the finance ministers had “welcomed the commitment of
the IMF, as expressed on Friday by its Managing Director Christine
Lagarde, for a contribution of 28 billion euros” to the bailout package.

He said the new package represented “a second chance for Greece,”
noting that the amount of aid was unprecedented and asserting that the
indebted country’s membership in the Eurozone was secure.

Asked to comment how the EU plans to address the problems of 1
million unemployed Greeks and the three million now living under the
poverty line, according to the latest Eurostat figures, Economic and
Monetary Affairs Commissioner Olli Rehn said it was essential to focus
on the second program, which addresses the unemployment issue.

Rehn said that the EU is now helping the Greek authorities to
absorb European Union aid money more quickly and is providing the
necessary technical support to use the funds.

–Brussels Newsroom, a_papamiltiadou@hotmail.com

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