Greece to receive next €9bn of bailout

20 August 2010

Greece is to get the next €9 billion ($11.5 billion) of its bailout funding, after the loan was cleared by the European Commission.

The country was praised for the steps it has taken to cut its deficit in the past few months, reports the Financial Times.

Olli Rehn, the economics and monetary affairs commissioner, said: "Greece has managed impressive budgetary consolidation during the first half of 2010 and has achieved swift progress with major structural reforms."

But he added that the country still faces serious challenges, with the main one being the safeguarding of the financial stability of its banking sector.

Officials from the European Commission, the International Monetary Fund and the European Central Bank visited Greece earlier in August to assess how it is getting on with its deficit reduction program.

Following their findings, eurozone finance ministers are now expected to approve the €9 billion tranche of funding at their next meeting on September 7th.

Earlier this month, it was revealed that gross domestic product in Greece fell by 1.5 per cent during the second quarter of 2010, reported the Guardian.

By Claire Archer

Become a bobsguide member to access the following

1. Unrestricted access to bobsguide
2. Send a proposal request
3. Insights delivered daily to your inbox
4. Career development