Greece bailout: Eurozone deal unlocks €10.3bn

25-May (BBC) — Greece has agreed a deal to unlock a further 10.3bn euros ($11.5bn; £7.8bn) in loans from its international creditors, after talks in Brussels.

Eurozone finance ministers also agreed on debt relief for Greece, extending the repayment period and capping interest rates.

Greece needed this tranche of cash to meet debt repayments due in July.

The Greek government owes its creditors more than €300bn – about 180% of its annual economic output (GDP).

The International Monetary Fund (IMF) has been at odds with the Eurogroup of eurozone finance ministers for months over the issue of debt relief for Greece.

The IMF considers debt relief essential, but Germany in particular was opposed.

…Wednesday’s deal does not reduce the amount Greece will have to repay. Instead, debt relief will be phased in from 2018, after Germany’s general election late next year. As such, the deal is being seen by many as a compromise intended to buy time.

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PG View: How many Greek bailouts is that now?