–New Bailout Package For Greece Won’t Be Decided Until July 11 Meeting

BRUSSELS (MNI) – Olli Rehn, the European Union’s Economic and
Monetary Affairs Commissioner, said Thursday he was confident that the
Eurogroup, which will meet on June 19-20, would enable the disbursement
of a E12 billion loan tranche from the current E110 bailout package for

But the details needed to reach an agreement for longer-term
funding, including a new bailout package estimated at close to E90
billion, won’t be worked out until July, he said.

Below is the verbatim text of Rehn’s statement:

“I am confident that next Sunday, the Eurogroup will be able to
decide on the disbursement of the fifth tranche of the loans for Greece
in early July. And I trust that we will also be able to conclude the
pending review, in agreement with the IMF.

In the same context, the Eurogroup on Sunday-Monday will discuss
the contents and conditions of a successor programme for Greece, and the
nature of private sector involvement in this, with a the view to taking
decisions at the next Eurogroup meeting of 11 July.

By doing so, we will avoid the default scenario and pave the way
for an agreement on the medium-term strategy. It has been difficult, but
I strongly believe that with this two-step approach, in agreement with
IMF, we can avoid any accident scenario. It means that the funding of
the Greek sovereign debt can now be ensured until September, while we
take the decisions for the medium-term, beyond September, in July.

I call on all EU decision-makers, and more particularly the Finance
Ministers of the euro area next Sunday, to overcome the remaining
differences and come to a responsible agreement at this critical

Of course, a great deal of responsibility lies on the shoulders of
the Greek authorities and all Greek political leaders. We expect the
Greek Parliament to endorse the economic reform programme as agreed by
the end of June. It is regrettable that the efforts to build national
unity failed yesterday. Indeed the efforts needed to avoid a default –
which would be a catastrophe for Greece – are the responsibility of all
political forces.

The next days will be critical for the financial stability and
economic recovery in Greece and Europe. I trust all leaders in Greece
and Europe realise their responsibility and will act accordingly.”

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