CCTV.com - CNTV English - CCTV News

EU, IMF agree to 110-billion euro bailout for Greece

05-03-2010 09:40 BJT Special Report: Europe's Debt Crisis |

Watch Video

Play Video

Finance ministers of the 16 countries using the Euro are making 110 billion Euros in loans available to Greece over the next three years to keep it from defaulting on debts. The EU and International Monetary Fund bailout is aimed at keeping the Greek debt crisis from SPREADING to other financially weak members of the EU.

The plan still needs approval by some national parliaments, but the head of the Eurogroup says the first funds will be available to Greece by May 19th.

Jean-Claude Juncker, Eurogroup President, said, "In the context of a three year joint programme with the IMF, the financial package made available: 110 billion euros to help Greece meet its financial needs with euro area member states ready to contribute for their part 80 billion euros of which up to 30 billion euros in the first year."

In return for the bailout, Greece agrees to an austerity program of painful spending cuts and tax increases for years to come. The country's Finance Minister says it's not going to be easy.

Greek Finance Minister George Papaconstantinou, center, take his seat prior to a press conference in Athens, on Tuesday, April 20, 2010. Finance Minister George Papaconstantinou said he would travel to the United States Friday to attend an IMF meeting, and would hold talks with U.S. Treasury Secretary Tim Geithner and IMF chief Dominique Strauss-Kahn. Greece has raised ?1.95 billion ($2.62 billion) in a 13-week treasury bill auction that was more than four times oversubscribed, the public debt management agency said Tuesday.(AP Photo/Nikolas Giakoumidis)
Greek Finance Minister George Papaconstantinou, center, take his 
seat prior to a press conference in Athens, on Tuesday, April 20, 
2010. Finance Minister George Papaconstantinou said he would travel 
to the United States Friday to attend an IMF meeting, and would 
hold talks with U.S. Treasury Secretary Tim Geithner and IMF chief 
Dominique Strauss-Kahn. (AP Photo/Nikolas Giakoumidis)

George Papaconstantinou, Greek Finance Minister, said, "We are fully aware that this is a programme that is not going to be easy. It is not going to be easy on Greek citizens, despite the efforts that have been made and will continue to be made to protect the weakest in society. We are absolutely convinced that this is a necessary programme."

Under the plan, the Eurozone would contribute 80 billion Euros to the bailout package. The rest of the money would come from the International Monetary Fund.

Economists say that while the bailout should keep Greece from defaulting in the next year or two, the country's meagre prospects for economic growth mean it will have difficulty paying off its debt over the long term.

Editor:Du Xiaodan |Source: CCTV.com

Hot Videos view more

The celebrations are still continuing as the victorious coach, Joachim Loew, has been honored for his achievement in his hometown of Freiburg.
Germany coach Loew honored in hometown of Freiburg

Chinese men´s national team continued its preparations for next year´s Asian Cup, as they managed a one-all draw against visitors Jordan during a football friendly in Harbin, the capital city of Northeast China´s Heilongjiang Province.
China held to 1-1 draw by Jordan

The defending world champs came into the contest with a perfect 6-and-oh record, but they would be in for a tough first half before opening things up in the second.
USA beat Slovenia 119-76 in quarter-finals

Hot Stories more

UK authorities believe killer of James Foley is a British national

Across the UK the hunt is on for James Foley’s killer, who authorities believe is a British national. As Richard Bestic reports from London, Prime Minister David Cameron cut short his summer break to lead his government’s response.

Israeli war jets renews Gaza strike as truce talks stalled

Three Palestinians were killed and 40 others wounded in the intensive Israeli war jets´ airstrikes on the Gaza city on Tuesday night, shortly before an end of a 24-hour ceasefire in the Gaza Strip,

Missouri police arrest dozens after violent night

As the protests in the town of Ferguson, Missouri turned violent with police facing ´heavy gunfire´ from some ´criminal elements´, cops fired tear gas, stun grenades and arrested 31 demonstrators on Monday night.

Picture in news more

More Video News

Choose TV Program