Go Finance Reporting LUXEMBOURG - Finance Ministers of the European Zone postpone its decision to extend further assistance amounting to 120 billion euros, or $ 17 billion in emergency loans to Greece. Because the Greek government should first do the saving.
Greek parties say they need the loan to avoid default to pay the debt in mid-July. The ministers affirmed that the disbursement of the loan will depend on the law of the Greek parliament on the issue of fiscal reform and the sale of state assets.
As quoted by AFP on Monday (06/20/2011), the ministers issued a statement after a seven-hour hold meetings in Luxembourg. The ministers also plan a second bailout for Greece after the first bailout provided 110 billion euros in May last year.
The minister said that in addition to official loans, the new bailout will include the rollover will also voluntarily by private investors on their holdings in Greek government securities. But the statement did not say how large the bailout.
Meanwhile, Prime Minister of Greece George Papandreou asks citizens to support the austerity measures and avoid disaster by default. He also appealed for the nation to receive a very unpopular tax increases, spending cuts and privatization plans that are required of international donors.
"The consequences of bankruptcy violent or out of the euro zone would be a disaster for households, banks and the credibility of the state," said Papandreou. (GoFinance)
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