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This article was published on February 20, 2015 at 21:10.
The last change is the February 21, 2015 at 14:00.
Extending the current aid program for 4 months (and not six as requested by the Greeks) , completion of the measures contained in the Master Financial Assistance Facility Agreement (MFFA) before a new disbursement of aid, compliance with the financial commitments to creditors, a list of the reform program by next Monday: these are the main points of the agreement reached in Brussels between Greece and finance ministers, as explained by the President of the Eurogroup, Jeroen Dijsselbloem. A compromise that leaves the Grexit, traumatic exit of Athens from the Eurozone.
On the other hand, “the size of the primary budget required for Greece will take account of the situation” cyclical, said Dijsselbloem yet. Athens had asked to hold the primary surplus by 1.5% (compared to 3% this year and 4.5% in 2016 asked the Eurogroup), given the deep economic and humanitarian crisis prevailing in the country.
As for the funds available to fund the Greek support to the banking (ESFS) will be “used only for bank recapitalization and resolution costs” of institutions and will be released “only at the request of the ECB or the Ssm ». Athens asked to use those funds for general-purpose funding, but the Eurogroup insisted on keeping the sole use of bank recapitalisations.
The agreement “is in the interests not only of Greece but across the EU, “as it is” a balanced agreement, which allows the Greek authorities to implement the changes they want and at the same time to meet the commitments, “said the EU commissioner for economic affairs Pierre Moscovici. The premier greek Alexis Tsipras had tweeted at mid-day, “This is the time for a political decision historic, for the future of Europe.”
The emergency banks, Schaeuble lapidary
The aspirations of the leader of SYRIZA out obviously resized (at the end of the extension of the plan creditors will still have the knife by the handle, given the deadlines of July and August with ECB and IMF), but one can not speak of defeat for Greece, which has beveled edges and has at least gained some valuable time. A choice, in fact, could no longer be postponed, with the seal of the banks at risk since Tuesday (reopening after a bridge holiday), and despite the intervention of emergency (ELA) of the ECB. For two months, is taking a real hemorrhage: were calculated outflows to over 20 billion euro, only one Friday, to ongoing negotiations. Although the German finance minister, Wolfgang Schaeuble, was keen to make it clear that Athens will not receive new funds before it is successfully completed the rescue program. “The government greek – is the hard analysis Schaeuble – certainly will have difficulty explaining the agreement to his constituents. Until the current program is completed successfully, Greece will not receive additional payments. ”
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