Eurogroup of finance ministers confirms it will grant a three-year bailout loan to Greece as European Central Bank hikes bank liquidity assistance
The Eurogroup of finance ministers today confirmed it will grant Greece a three-year bailout loan – just as European Central Bank (ECB) chief Mario Draghi confirmed it will increase the amount of liquidty assistance available to banks by €900m in one week.
At a press conference today, Draghi said the approval of bridge financing, plus the Greek parliament's move to vote in favour of austerity rules outlined by its lenders "restored conditions for a raise in Emergency Liquidity Assistance (ELA)".
"The ECB continues to act on the assumption that Greece and will remain a member of the euro area," he added.
"We will now see how the situation will evolve".
He also pointed out that with total exposure to the Greek economy of €130bn, the ECB is now the country's largest depositor.
As Draghi was speaking, the Eurogroup published a statement saying a new three-year loan will take the form of a "stability support" to Greece, provided under the European Stability Mechanism.
However, it added that the loan is still subject to "the completion of relevant national procedures".
It gave the Greek authorities a deadline of 22 July – next Wednesday – to adopt the second set of measures outlined by its creditors.