• publish: 18 July 2015
  • time: 2:07 am
  • category: International
  • No: 340
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EU approves $7.8b short-term loan for Greece

The European Union (EU) formally approved a short-term loan of 7.16 billion euros ($7.8 billion) to Greece on Friday

 

The European Union (EU) formally approved a short-term loan of 7.16 billion euros ($7.8 billion) to Greece on Friday, while offering guarantees to non-euro nations that their taxpayers would not be at risk, the EU Commissioner for the euro said on Friday.

“We have an agreement on bridge financing….

This agreement is backed by the 28 member states,” Valdis Dombrovskis told reporters, adding that the bridge loan would allow Greece to meet a huge payment to the European Central Bank on Monday.

German lawmakers gave their go ahead on Friday for the eurozone to negotiate a third bailout for Greece, heeding a warning from Chancellor Angela Merkel that the alternative to a deal with Athens was chaos.

The Bundestag lower house of parliament, whose backing is essential for the talks to start, decisively approved the move by 439 votes to 119, with 40 abstentions.

But almost a fifth of Merkel’s conservatives voted ‘no’ in a blow to the chancellor.

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