Greece strikes bailout deal ensuring next payment

Greece reaches deal with creditors to release new funds in bailout agreement

Photo by: Reuters
Photo by: Reuters

Greek finance minister Euclid Tsakalotos

Updated Nov 18, 2015

Greek government reached an agreement with its creditors on Tuesday unlocking aid of 12 billion euros ($12.8 billion), Greek Finance Minister Euclid Tsakalotos has confirmed.

Earlier this month, the deal talks failed as foreclosures and handling tax arrears obstacles occurred. Greece had met with its creditors several times but failed to resolve the issues.

"There was an agreement on all the milestones ... whatever was required," Tsakalotos told reporters after holding a meeting with Europe and the International Monetary Fund.


The deal reached overnight ensured foreclosure protection for primary homes for about 60 percent of mortgages among an estimated 400,000 homeowners whose loans had soured.

Out of the 60 percent of owners, 25 percent of them were given the privilege of protection due to their extremely low incomes. The rest are safe for an upcoming three years.

"This is the first time a social safety net has been created to protect the poor and the unemployed," a Greek official said.

The sides reached consensus in implementing the austerity measures already accepted by the Greek government as part of its 86 billion euro ($93 billion) bailout agreement.

When the deal is finalised and accepted by the euro zone finance ministers  (Euro Working Group), Greece will ensure 2 billion euros ($2.15 billion) as well as around 10 billion euros ($10.6 billion) for bank recapitalisation.

TRTWorld and agencies