Home Breaking News Greece bailout extension agreed after Eurogroup talks in Brussels

Greece bailout extension agreed after Eurogroup talks in Brussels


Greece and the eurozone finance ministers have reached a deal to extend its bailout by four months after talks in Brussels.

The extension will allow Greece to negotiate a follow-up arrangement with creditors.

“The Greek authorities have expressed their strong commitment to a broader and deeper structural reform process aimed at durably improving growth and employment prospects, ensuring stability and resilience of the financial sector and enhancing social fairness,” the Eurogroup said in a statement.

Dutch finance minister Jeroen Dijsselbloem, head of the Eurogroup, said that Athens had pledged to honor all its debts.

“This is a very positive outcome,” Jeroen Dijsselbloem told a news conference on Friday night.

“I think tonight was a first step in this process of rebuilding trust. As you know trust leaves quicker than it comes. Tonight was a very important, I think, step in that process,” he added.Greece bailout extension Eurogroup

Greece had agreed to present an initial list of reform measures by February 23, Jeroen Dijsselbloem said.

Athens welcomed the deal, which a Greek government official said gave it time to negotiate a “new deal”.

“Greece has turned a page,” the official said.

“We have avoided recessionary measures.”

Greece had been seeking a six-month extension of the bailout but the Eurogroup opted for four months.

The euro gained against the US dollar on February 20 following the announcement, adding 0.3% to $1.1403, while the Dow Jones industrial average and S&P 500 struck new intraday highs.

The agreement removes the immediate risk of Greece running out of money next month.

The new deal also provides a breathing space for the new Greek government to try to negotiate longer-term debt relief with its EU creditors.

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