The first installment of emergency loans to Greece has been transferred by the European Union. This will allow the country to reimburse 8.5 billion Euros of bonds due tomorrow and avoid non-payment. EU Spokesman Amadeu Altafaj shared that an amount of 14.5 billion Euros was sent today.
The International Monetary Fund made its first contribution of 5.5 billion Euros last week. Greece's financial needs for May and June will be covered by the loans, according to a Greek Finance Ministry official. The last bond maturity which the Greece faces is the one which it faces tomorrow, until 8.6 billion Euros of three-year debt matures in March 2011.
A 110 billion-euro aid package was to be paid, by the Euro-area ministers and the IMF for the debt-stricken nation. Austerity measures of about 14 percent of gross domestic product were pledged to be implemented by Greece, in lieu of the rescue funds.
The initial bailout failed to end the slump in bonds of other high-deficit nations such as Spain and Portugal and also did not stem the slide in the euro. In order to try to stop the contagion, EU leaders agreed to a financial lifeline of $1 trillion on May 9. The Euro was at $1.2402 today after reaching a four- year low of $1.2235 the previous day.