BRUSSELS (MNI) – The European Commission will hold a meeting Monday
with representatives of the European Central Bank, the International
Monetary Fund and the Greek Government to finalise details of an aid
package worth more than E30 billion this year, should Greece need it.
Speaking in Brussels Sunday, European Commissioner for Economic and
Monetary Affairs, Olli Rehn, said the purpose of the meeting was to
“clarify everything with the IMF, with the Greek government.”
He said the Commission would “continue working and negotiating with
the IMF” on the the exact amount of the total aid package and the
pricing.
“From our side, the ECB and the Commission will be participating,”
he said.
Eurozone finance ministers held an emergency conference call on
Sunday in which Rehn and ECB President Jean-Claude Trichet took part, to
finalise details of an aid mechanism for Greece “which could be swiftly
activated if needed,” Rehn said.
The Eurozone ministers agreed to provide up to E30 billion this
year in bilateral loans. Loan terms would depend on maturity and whether
they were fixed or variable rate.
A three-year fixed-rate loan, for example, would have an interest
rate of about 5%. That’s well below current market rates on such a loan.
More funding would potentially be provided in subsequent years.
Heavily-indebted Greece is struggling to manage a budget deficit more
than four times the EU’s stipulated 3%-of-GDP limit.
–Brussels: 0032 487 (0) 32 803 665, echarlton@marketnews.com
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