eurozone

Euro zone finance ministers release 35 bn Euro for Greece
Euro zone finance ministers have released 35 billion euro from the second bailout package for debt- ridden Greece
soon after Greece reached a landmark deal with private creditors on a bond swap, which will halve
its debts to around 107 billion euros.
Greece fulfilled all conditions set by the European Union and the International Monetary Fund (IMF)
to receive the second 130-billion-euro bailout package. Greece took steps to implement a new
round of tough austerity measures and far-reaching economic reforms in return for the assistance from the EU and the
Current Affairs Published on www.gktoday.in from January 1, 2012 to
September 10, 2012
IMF. The Ministers decided to release 30 billion euros from the package to finance the debt write-down while another
5.5 billion euros was disbursed to meet outstanding interest payments.
The finance ministers of the 17 nations using the euro, welcomed the pact by private sector holders of Greek sovereign
bonds to write-down up to 53.5% of their claims in nominal terms by exchanging their bonds for new ones with less
value, longer maturity and lower interest rate. In real terms, they may face losses up to 74%.