By TraderVox.com
Tradervox (Dublin) – Euro zone finance ministers have endorsed the second Greek bailout plan. According to Jean-Claude Juncker, Luxembourg Prime Minister said that the program have received political backing, paving way for the first payment to the Greek government. However, the formal approval from the finance ministers will be released on March 14, after which the IMF is expected to vote on the issue.
The payment, which is scheduled to start in March with a payment 5.9 billion Euros, will see Greece get 100 billion Euros in three years. The country is expected to get 3.3 and 5.3 billion Euros in April and May respectively. The agreement is a culmination of months of negotiations with stakeholders which has resulted to bondholders agreeing to shed 75 percent of their investments in the country.
Evangelos Venizelos, Greek Finance Minister said after the meeting that despite the change in situation for Greece, the government has a great responsibility of ensuring that economic and austerity program proposed must be implemented if the country is to get out of its greatest recession. By agreeing to this bailout plan, the euro area finance ministers have assured Greece’s future in the euro zone.
Despite the efforts made, there are some analysts who are adamant and have insisted that the debt crisis is far from over. The crisis looming in Spain, Portugal, Italy, and Ireland have been cited as possible indicators of the depth of debt crisis in Europe. This has led some analysts to predict a possible recession in the region later in the year.
As Europe struggles with the debt crisis, the US economy is showing signs of recovery as the Department of Commerce produce very promising reports. The FOMC meeting expected to release a statement later today, is projected to leave interest rates unchanged but speculations are high on whether the Fed will deviate from its “Operation Twist” or it is going to stick to it and make the third round of large scale bond buying.
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