The Greek Bailout Numbers
8 December 2015
Third time lucky
- Brussels EU Bank provided €86 billion (or $96 billion) over three years from 13 July 2015.
- Greece settled terms on 11 August with four institutions representing the interests of creditors:
1) The European Commission
2) The European Central Bank (ECB)
3) The IMF and the European Stability Mechanism (ESM)
4) A rescue fund for the Euro zone.
- Greek Parliament passed the proposals into law on 13 August. The reforms Greece has agreed to are:
1) Raising of VAT
2) Make pension payouts only to people over 67
3) Steps to liberalize markets. Tax administration to be overhauled with tough measures for those in arrears.
4) New privatization fund to be set up to raise €50 billion.
50% to go to capitalize Greek banks
25% to pay down debt
25% for investment
5) Privatization, sale of state assets to raise €64 billion between 2015 and 2017
6) Fiscal target not so harsh; for 2015 primary deficit excludes interest repayment on 0.25% of GDP.
- Loans to banks have not been capitalized to equity. – it would destroy the working capital of Greece’s small businesses.
The hope is that in the next 3 years the Greeks are able to get their house in order.