Greece expresses 'great relief'
Source: Agencies |
July 23, 2011, Saturday
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Print Edition
Print Edition
GREECE'S finance minister expressed "great relief" yesterday in the wake of a second European bailout for the country's crisis-hit economy.
Evangelos Venizelos also promised to press ahead with unpopular cost-cutting measures aimed at generating a primary budget surplus, starting next year.
Eurozone countries and the International Monetary Fund pledged on Thursday to give Greece 109 billion euros (US$155 billion) worth of rescue funds, on top of the 110 billion euros granted a year ago.
The new loans will carry a generous 3.5 percent interest rate and maturities of between 15 and 30 years.
"(The decision) provides a great relief for the Greek economy, which will gradually be passed on to the real economy," Venizelos told a news conference in Athens.
"But this in no way means we will relax our efforts. We must continue implementing our program and remain committed to the great target of meeting budgetary goals."
He added: "Now we have a new momentum."
Greece got the rescue deal three weeks after passing a new five-year austerity program worth 28 billion euros in budget savings and 50 billion euros in privatizations - facing down violent protests, strikes and a sharp drop in popularity for the governing Socialist party.
"The Greek banking system is perhaps the most guaranteed and secure in Europe, if not elsewhere. There is now a great protective umbrella over Greek banks," Venizelos said.
Speaking shortly before Fitch Ratings' warning that it would briefly place Greece in "restricted default" due to bondholders' losses as part of the rescue package, Venizelos argued that such a decision would not have a detrimental effect.
"The issue of bank liquidity has been secured. This liquidity will be channeled to the real economy," he said.
"Whatever reaction outside the institutional system, whatever rating, has been answered in advance and will have no real repercussions."
Evangelos Venizelos also promised to press ahead with unpopular cost-cutting measures aimed at generating a primary budget surplus, starting next year.
Eurozone countries and the International Monetary Fund pledged on Thursday to give Greece 109 billion euros (US$155 billion) worth of rescue funds, on top of the 110 billion euros granted a year ago.
The new loans will carry a generous 3.5 percent interest rate and maturities of between 15 and 30 years.
"(The decision) provides a great relief for the Greek economy, which will gradually be passed on to the real economy," Venizelos told a news conference in Athens.
"But this in no way means we will relax our efforts. We must continue implementing our program and remain committed to the great target of meeting budgetary goals."
He added: "Now we have a new momentum."
Greece got the rescue deal three weeks after passing a new five-year austerity program worth 28 billion euros in budget savings and 50 billion euros in privatizations - facing down violent protests, strikes and a sharp drop in popularity for the governing Socialist party.
"The Greek banking system is perhaps the most guaranteed and secure in Europe, if not elsewhere. There is now a great protective umbrella over Greek banks," Venizelos said.
Speaking shortly before Fitch Ratings' warning that it would briefly place Greece in "restricted default" due to bondholders' losses as part of the rescue package, Venizelos argued that such a decision would not have a detrimental effect.
"The issue of bank liquidity has been secured. This liquidity will be channeled to the real economy," he said.
"Whatever reaction outside the institutional system, whatever rating, has been answered in advance and will have no real repercussions."
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