Eurozone offers Greece 30 billion euro in loans

Sunday, April 11, 2010

Member states of the eurozone have offered to give Greece thirty billion euro in emergency loans for the debt-stricken country, should the latter want it.

The loans' price will be determined using formulas by the International Monetary Fund (IMF), and will be set at around five percent.

The Luxembourgish prime minister, Jean-Claude Juncker, speaking on behalf of eurozone finance ministers, commented that "[t]he total amount put up by the eurozone member states for the first year will reach 30bn euros." He added that "[t]his is certainly no subsidy" to Greece.

The prime minister also noted that financing would be "completed and co-financed" by the IMF. European Union monetary affairs chief Olli Rehn remarked that the IMF would make a "substantial contribution" to the loan package as well, perhaps around ten billion euros.

The Greek economy has spent more than it has earned for several years now, and currently faces a budget deficit equal to 12.9% of its economic output, or a total debt of 300 billion euros. The country intends to try and reduce the deficit to 8.7% this year.