European governments finally settled on releasing Eur3 billion or US$3.9 billion of aid for Greece. The governments aimed to seek sufficient financial calm. They wanted to inhibit another debt-crisis row until after the September election in Germany.
Greece would receive Eur2.5 billion this month while the remaining would be given in October. However, this was dependent on Prime Minister Antonis Samaras' unsteady coalition. The coalition was supposed to make economic reforms. It was also expected to reduce spending.
Greece would also rely on the recovery of Eur2 billion in central bank earnings on Greek bonds. The International Monetary Fund was also anticipated to lend the country Eur1.8 billion.
"Greece is on the right track in many ways, but there have been delays in some areas," Wolfgang Schaeuble, Germany's Finance Minister, told reporters after a summit with euro-area counterparts in Brussels on Monday. "It is right to proceed on a cash-on-delivery basis and step by step and make the disbursements as Greece's financing needs arise."
Join the Conversation