|Protests in Greece earlier this year|
Greece will be extended loans of up to 43.7 billion euros in steps as it meets required conditions. The first instalment of 34.4 billion euros is to be released on 13 December to assist in bank recapitalisations and government payments for wages, pensions and other expenditures.
The following is part of the package of measures that has been agreed to help Greece achieve debt sustainability:
- Interest rates on existing loans are to be cut by 100 basis points, their maturity extended by 15 years and a 10-year interest payment deferral is to be granted.
- Profits accruing on the purchase of Greek bonds by the ECB at the time of its Securities Market Programme are to be given to Greece to help repurchase debt.
- Finance is to be made available by the Eurogroup of finance ministers to offer private investors 35 cents in the euro for their Greek bonds.