ATHENS: Greece may seek 24 billion euros in a first tranche of bailout aid from international lenders in August to prop up its banks and repay debts falling due at the ECB, a pro-government Greek newspaper said in its early Sunday editions.

Athens is now in talks with the European Commission and the International Monetary Fund to secure up to 86bn euros ($94.48bn) in bailout aid. It will be its third bailout since 2010.

Avgi newspaper, which is close to the leftist Syriza government, said Greek authorities expected to conclude talks with lenders by mid-August.

The first tranche of 24.36bn would be used to channel 10bn euros as an initial recapitalisation to Greek banks, 7.16bn euros to repay an emergency bridge loan, 3.2bn euros towards Greek bonds held by the European Central Bank and other payments, Avgi said.

It has been estimated that Greek banks may require up to 25bn euros to be recapitalised, a shortfall exacerbated by an outflow of deposits when a stalemate with lenders threatened Athens’ place in the eurozone.

The flood of money leaving the country culminated in authorities imposing capital controls on June 29 to prevent a financial meltdown.

In exchange for funding Greece has accepted reforms including making significant pension adjustments, increasing value added taxes, overhauling its collective bargaining system, and measures to liberalise its economy and limit public spending.

If the talks are not completed in time, European authorities may have to provide further temporary financing as they did with a July bridge loan, though Avgi said that possibility had not been discussed with lenders.

Published in Dawn, August 2nd, 2015

On a mobile phone? Get the Dawn Mobile App: Apple Store | Google Play

Opinion

A ventilator for democracy
Updated 15 Jun 2021

A ventilator for democracy

Chomsky has analysed Biden’s foreign policy succinctly, which is essentially not very different from Trump’s in most ways.
State of IKonomy
15 Jun 2021

State of IKonomy

PTI’s economic record is not rosy as some say it is.
Not by words alone
Updated 14 Jun 2021

Not by words alone

A policy shift must be backed by substance otherwise it is a statement of intent not a strategy.

Editorial

15 Jun 2021

Middle East’s plight

THE Middle East is geopolitically and economically perhaps the most important region of the world, home to much of...
Thoughtless eviction
Updated 15 Jun 2021

Thoughtless eviction

Promised compensation of Rs20,000 per month for two years is hardly worth the adversity evicted residents have to undergo.
15 Jun 2021

Cinema ‘industry’?

THE vast gap that often exists between the state’s intentions and its actual efficiency was evident in the third...
Power shortages
Updated 14 Jun 2021

Power shortages

It is high time that governance and structural reforms were introduced in the energy sector.
14 Jun 2021

Suicide in Thar

THARPARKAR is an appropriate case study for examining the factors that lead some people to the desperate, final act...
14 Jun 2021

Water woes

THIS past week saw a discussion on a water management system that, if properly implemented, should go some way...