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| Greek bailout deal agreed as creditors approve €8.5bn loan - as it happened | |
| (35 minutes later) | |
| 11.37pm BST | |
| 23:37 | |
| And finally... Greece’s prime minister has hailed the deal. | |
| Alexis Tsipras tweeted that | |
| Today Greece is turning a page. We have an agreement that corresponds to the sacrifices of the Greek people. | |
| Σήμερα η Ελλάδα γυρίζει σελίδα. Έχουμε μια συμφωνία που ανταποκρίνεται στις θυσίες του ελληνικού λαού. (1/2) | |
| He added that: | |
| With unity and determination we move forward for fair growth and the healing of the wounds of the crisis. | |
| Με ενότητα και αποφασιστικότητα προχωράμε μπροστά για τη δίκαιη ανάπτυξη και την επούλωση των πληγών της κρίσης. (2/2) | |
| Stirring stuff. But some analysts aren’t convinced that the deal is quite that sweeping - given there’s still no concrete pledge for meaningful debt relief. | |
| Wolf Piccoli of Teneo Intelligence argues that Greece is still in a fix: | |
| #Greece secured a Eur 8.5bn loan tranche. Else is pretty much hot air. Country remains stuck in a vicious cycle. Good luck with it. | |
| And that’s a good moment to wrap up. Good night! GW | |
| Updated | |
| at 11.40pm BST | |
| 11.18pm BST | |
| 23:18 | |
| Here are some photos from today’s eurogroup meeting in Luxembourg, where the Greek bailout deal was agreed: | |
| Updated | |
| at 11.22pm BST | |
| 11.11pm BST | 11.11pm BST |
| 23:11 | 23:11 |
| Here’s Marketwatch’s explanation of how the IMF is finally coming on board and joining the Greek bailout.... | Here’s Marketwatch’s explanation of how the IMF is finally coming on board and joining the Greek bailout.... |
| Christine Lagarde, managing director of the International Monetary Fund, on Thursday unveiled a plan that will unlock some new funding for Greece. | Christine Lagarde, managing director of the International Monetary Fund, on Thursday unveiled a plan that will unlock some new funding for Greece. |
| Lagarde said she would ask the IMF board to back “the approval in principle” of a new IMF loan for Greece. | Lagarde said she would ask the IMF board to back “the approval in principle” of a new IMF loan for Greece. |
| The deal will unlock some IMF funding thus “reducing serious stress on the Greek economy,” Lagarde said. Greece is facing debt repayment in July. | The deal will unlock some IMF funding thus “reducing serious stress on the Greek economy,” Lagarde said. Greece is facing debt repayment in July. |
| 10.09pm BST | 10.09pm BST |
| 22:09 | 22:09 |
| On the debt relief issue, the eurozone finance ministers have agreed to consider extending the maturity of some Greek bonds. | On the debt relief issue, the eurozone finance ministers have agreed to consider extending the maturity of some Greek bonds. |
| That’s a way of providing debt relief without actually writing the loans off. So something of a fudge, really - but one that all sides can live with. | That’s a way of providing debt relief without actually writing the loans off. So something of a fudge, really - but one that all sides can live with. |
| Reuters explains: | Reuters explains: |
| To accommodate the IMF’s need for more specifics on debt relief, the euro zone finance ministers said in a statement that in 2018 they would be ready to consider extending the maturities and grace periods of their loans to Greece by a range from zero to 15 years. The average maturity now is 30 years. | To accommodate the IMF’s need for more specifics on debt relief, the euro zone finance ministers said in a statement that in 2018 they would be ready to consider extending the maturities and grace periods of their loans to Greece by a range from zero to 15 years. The average maturity now is 30 years. |
| But they did not go any further than that and the IMF said it was not enough to calculate Greek debt sustainability. | But they did not go any further than that and the IMF said it was not enough to calculate Greek debt sustainability. |
| 9.48pm BST | 9.48pm BST |
| 21:48 | 21:48 |
| AFP on the Greek debt deal | AFP on the Greek debt deal |
| The AFP newswire have a good write-up of tonight’s deal, by Alex Pigman. | The AFP newswire have a good write-up of tonight’s deal, by Alex Pigman. |
| Here’s a flavour: | Here’s a flavour: |
| Eurozone agrees Greek bailout payment, IMF comes on board | Eurozone agrees Greek bailout payment, IMF comes on board |
| Eurozone ministers struck a long-delayed bailout deal with Greece on Thursday to unlock badly needed rescue cash, but warned Athens would have to wait for debt relief. After hours of talks in Luxembourg IMF chief Christine Lagarde and the eurozone’s 19 finance ministers greenlit a payout of 8.5 billion euros to meet debt payments due in July and avoid another summer of Greek crisis. Payment of the latest tranche of Greece’s 86-billion euro ($97-billion) has been held up for months by a row over its needs for debt relief pitting bailout-weary Germany against the IMF. “I am pleased to announce we have achieved an agreement on all elements,” Eurogroup head Jeroen Dijsselbloem told a news conference. “I think this is a major step forward,” he said. In a breakthrough, Lagarde agreed in Luxembourg that the Washington-based IMF would join Greece’s massive bailout, but said any payouts depended on the eurozone coming up with a full debt relief plan. “Nobody claims that this is the best solution. This is a second best solution, but it’s not a bad solution,” said Lagarde, a former French finance minister. The deal averts a repeat of the summer of 2015 when Greece spectacularly defaulted on an IMF loan, and allows Athens to meet seven billion euros of debt repayments due in July. | Eurozone ministers struck a long-delayed bailout deal with Greece on Thursday to unlock badly needed rescue cash, but warned Athens would have to wait for debt relief. After hours of talks in Luxembourg IMF chief Christine Lagarde and the eurozone’s 19 finance ministers greenlit a payout of 8.5 billion euros to meet debt payments due in July and avoid another summer of Greek crisis. Payment of the latest tranche of Greece’s 86-billion euro ($97-billion) has been held up for months by a row over its needs for debt relief pitting bailout-weary Germany against the IMF. “I am pleased to announce we have achieved an agreement on all elements,” Eurogroup head Jeroen Dijsselbloem told a news conference. “I think this is a major step forward,” he said. In a breakthrough, Lagarde agreed in Luxembourg that the Washington-based IMF would join Greece’s massive bailout, but said any payouts depended on the eurozone coming up with a full debt relief plan. “Nobody claims that this is the best solution. This is a second best solution, but it’s not a bad solution,” said Lagarde, a former French finance minister. The deal averts a repeat of the summer of 2015 when Greece spectacularly defaulted on an IMF loan, and allows Athens to meet seven billion euros of debt repayments due in July. |
| Athens all week insisted it would veto the deal, bitter that the latest disbursement would come without firm debt relief commitments after it delivered on tough reforms. As a consolation, in a compromise negotiated by France, Greece won a certain amount of clarity from the eurozone on debt relief. Debt relief “will be implemented at the end of the programme, conditional on its successful implementation” in 2018, said Dijsselbloem, who is also Dutch finance minister. The eurozone would now draw up an “exit strategy” over the next year “to enable Greece to stand on its own feet again”, Dijsselbloem said. | Athens all week insisted it would veto the deal, bitter that the latest disbursement would come without firm debt relief commitments after it delivered on tough reforms. As a consolation, in a compromise negotiated by France, Greece won a certain amount of clarity from the eurozone on debt relief. Debt relief “will be implemented at the end of the programme, conditional on its successful implementation” in 2018, said Dijsselbloem, who is also Dutch finance minister. The eurozone would now draw up an “exit strategy” over the next year “to enable Greece to stand on its own feet again”, Dijsselbloem said. |
| by @alexrpigman @afp #Eurozone agrees Greek bailout payment, #IMF comes on board https://t.co/jcQH2cVXNY via @yahoosg | by @alexrpigman @afp #Eurozone agrees Greek bailout payment, #IMF comes on board https://t.co/jcQH2cVXNY via @yahoosg |
| 9.24pm BST | 9.24pm BST |
| 21:24 | 21:24 |
| Here’s the official line from the International Monetary Fund: | Here’s the official line from the International Monetary Fund: |
| Lagarde: IMF taking constructive approach to help Greece, consistent with "two legs": reforms and debt relief https://t.co/P2XqdZka0Y pic.twitter.com/3JSwSDs2hA | Lagarde: IMF taking constructive approach to help Greece, consistent with "two legs": reforms and debt relief https://t.co/P2XqdZka0Y pic.twitter.com/3JSwSDs2hA |
| The IMF has long been pushing the eurozone to admit that Greece needs debt relief to put the country’s finances on a sustainable level. | The IMF has long been pushing the eurozone to admit that Greece needs debt relief to put the country’s finances on a sustainable level. |
| 9.22pm BST | 9.22pm BST |
| 21:22 | 21:22 |
| European Council president Donald Tusk has also applauded the news: | European Council president Donald Tusk has also applauded the news: |
| Finally good news for Greece. It was well deserved. | Finally good news for Greece. It was well deserved. |
| 9.20pm BST | 9.20pm BST |
| 21:20 | 21:20 |
| European commissioner Pierre Moscovici has welcomed tonight’s agreement to extend Greece its next bailout loan: | European commissioner Pierre Moscovici has welcomed tonight’s agreement to extend Greece its next bailout loan: |
| Tonight, #Greece can see the light at the end of its long tunnel of austerity. From tonight, the watchwords are jobs, growth and investment. | Tonight, #Greece can see the light at the end of its long tunnel of austerity. From tonight, the watchwords are jobs, growth and investment. |
| But there is scepticism too. Carsten Brzeski of Dutch bank ING points out that there isn’t any debt relief yet, and the IMF still haven’t put any money in. | But there is scepticism too. Carsten Brzeski of Dutch bank ING points out that there isn’t any debt relief yet, and the IMF still haven’t put any money in. |
| Good old European muddling through on #Greece. Debt relief? Maybe later. IMF participation? In principle. Next tranche? Sure. | Good old European muddling through on #Greece. Debt relief? Maybe later. IMF participation? In principle. Next tranche? Sure. |
| 9.15pm BST | 9.15pm BST |
| 21:15 | 21:15 |
| Greece’s finance minister, Euclid Tsakalotos, says tonight’s deal provides ‘light at the end of the tunnel’. | Greece’s finance minister, Euclid Tsakalotos, says tonight’s deal provides ‘light at the end of the tunnel’. |
| He explains that the eurogroup has given greater clarity about the medium-term debt relief which Greece can look forward to once its bailout programme has been successfully completed in summer 2018. | He explains that the eurogroup has given greater clarity about the medium-term debt relief which Greece can look forward to once its bailout programme has been successfully completed in summer 2018. |
| The eurozone is committed to helping Greece stand on its own two feet, Tsakalotos adds. | The eurozone is committed to helping Greece stand on its own two feet, Tsakalotos adds. |
| However, Tsakalotos also hints at some unhappiness, suggesting that Greece deserves even more given what it has endured, and achieved. | However, Tsakalotos also hints at some unhappiness, suggesting that Greece deserves even more given what it has endured, and achieved. |
| .@tsakalotos there is a new emphasis on growth and investments #Greece | .@tsakalotos there is a new emphasis on growth and investments #Greece |
| Now much greater clarity for both Greeks+markets is it as much clarity as much Greeks deserve? Perhaps not says @tsakalotos #eurogroup | Now much greater clarity for both Greeks+markets is it as much clarity as much Greeks deserve? Perhaps not says @tsakalotos #eurogroup |
| 9.12pm BST | 9.12pm BST |
| 21:12 | 21:12 |
| Germany’s finance minister, Wolfgang Schauble, says the Bundestag will consider whether to back this deal on Friday. | Germany’s finance minister, Wolfgang Schauble, says the Bundestag will consider whether to back this deal on Friday. |
| That’s because the eurogroup’s decision needs to be ratified by national parliaments. | That’s because the eurogroup’s decision needs to be ratified by national parliaments. |
| Schauble told reporters in Luxembourg that the deal will help improve Greece’s economy. | Schauble told reporters in Luxembourg that the deal will help improve Greece’s economy. |
| “Greece has to become competitive to get access to debt markets so it can stand on its own two feet. | “Greece has to become competitive to get access to debt markets so it can stand on its own two feet. |
| “For that Greece has to carry out reforms.”. | “For that Greece has to carry out reforms.”. |
| 8.45pm BST | 8.45pm BST |
| 20:45 | 20:45 |
| Greece reaches a deal over bailout funds | Greece reaches a deal over bailout funds |
| A late newsflash: Eurozone finance ministers have reached a deal to unlock €8.5bn in urgently needed loans. | A late newsflash: Eurozone finance ministers have reached a deal to unlock €8.5bn in urgently needed loans. |
| The eurogroup reached the deal tonight, ending months of uncertainty, giving Greece the financial assistance it needs to meet debt repayments this summer (yes, Greece is bring lent more money so it can pay older loans back). | The eurogroup reached the deal tonight, ending months of uncertainty, giving Greece the financial assistance it needs to meet debt repayments this summer (yes, Greece is bring lent more money so it can pay older loans back). |
| It will be split into three payments - the first, in early July, will cover debt repayments and various arrears. | It will be split into three payments - the first, in early July, will cover debt repayments and various arrears. |
| #ESM's Regling: 3rd tranche of 8.5 billion for #Greece to be split into 2 instalments. 1st of 7.7 bil to be disbursed early July.#eurogroup | #ESM's Regling: 3rd tranche of 8.5 billion for #Greece to be split into 2 instalments. 1st of 7.7 bil to be disbursed early July.#eurogroup |
| In a statement, the eurogroup welcomed the measures Greece has taken under its economic reform programme (which include painful austerity, tax rises and spending cuts). | In a statement, the eurogroup welcomed the measures Greece has taken under its economic reform programme (which include painful austerity, tax rises and spending cuts). |
| Importantly, the International Monetary Fund has moved closer to finally supporting Greece’s bailout (which was agreed almost two years ago and expires in August 2018). | Importantly, the International Monetary Fund has moved closer to finally supporting Greece’s bailout (which was agreed almost two years ago and expires in August 2018). |
| It is proposing to join the bailout this summer, but would not actually disburse any money until there is an agreement on Greek debt relief..... | It is proposing to join the bailout this summer, but would not actually disburse any money until there is an agreement on Greek debt relief..... |
| Here’s the details: | Here’s the details: |
| Acknowledging the staff level agreement reached with Greece on policies, IMF management will shortly recommend to the IMF’s Executive Board the approval in principle of Greece’s request for a 14-month Standby Arrangement. The IMF welcomes the further specification of the debt measures given today by Member States, and agrees that it represents a major step towards Greek debt sustainability. The IMF arrangement will become effective with resources made available in accordance with its terms, provided that the programme stays on track, when IMF staff can assure to the IMF’s Executive Board that there is an agreement on debt relief measures, that, appropriately calibrated at the end of the programme, would secure debt sustainability. | Acknowledging the staff level agreement reached with Greece on policies, IMF management will shortly recommend to the IMF’s Executive Board the approval in principle of Greece’s request for a 14-month Standby Arrangement. The IMF welcomes the further specification of the debt measures given today by Member States, and agrees that it represents a major step towards Greek debt sustainability. The IMF arrangement will become effective with resources made available in accordance with its terms, provided that the programme stays on track, when IMF staff can assure to the IMF’s Executive Board that there is an agreement on debt relief measures, that, appropriately calibrated at the end of the programme, would secure debt sustainability. |
| On debt relief, the Eurogroup have confirmed their commitment to an early pledge to address Greece’s debt pile - but any move would only come after this current bailout. | On debt relief, the Eurogroup have confirmed their commitment to an early pledge to address Greece’s debt pile - but any move would only come after this current bailout. |
| IMF chief Christine Lagarde says this is limited progress; not ideal, but enough to avoid a summer crisis. | IMF chief Christine Lagarde says this is limited progress; not ideal, but enough to avoid a summer crisis. |
| #IMF MD @Lagarde:This is not the best solution but the 2nd best. The best one would have been the absolute agmt on debt relief for #Greece | #IMF MD @Lagarde:This is not the best solution but the 2nd best. The best one would have been the absolute agmt on debt relief for #Greece |
| IMF head Lagarde expresses "hope" that the discussion over specific debt relief measures for Greece "can soon be brought to conclusion.” | IMF head Lagarde expresses "hope" that the discussion over specific debt relief measures for Greece "can soon be brought to conclusion.” |
| 5.46pm BST | 5.46pm BST |
| 17:46 | 17:46 |
| Afternoon summary | Afternoon summary |
| Time for a quick recap | Time for a quick recap |
| The Bank of England has surprised the markets by revealing that three policymakers have voted to raise interest rates. At her final meeting, Kristin Forbes pushed for borrowing costs to rise from 0.25% to 0.5%, and was supported by fellow MPC members Michael Sanders and Ian McCafferty. | The Bank of England has surprised the markets by revealing that three policymakers have voted to raise interest rates. At her final meeting, Kristin Forbes pushed for borrowing costs to rise from 0.25% to 0.5%, and was supported by fellow MPC members Michael Sanders and Ian McCafferty. |
| The three hawks have highlighted the Bank’s concerns about inflation, which jumped to 2.9% earlier this week. But there other five members are more concerned about the UK economy. | The three hawks have highlighted the Bank’s concerns about inflation, which jumped to 2.9% earlier this week. But there other five members are more concerned about the UK economy. |
| Our economics editor Larry Elliott argues that the doves are right: | Our economics editor Larry Elliott argues that the doves are right: |
| Households are spending less, the housing market is weak, new car registrations have plunged and wage growth has fallen back, even though more people are in jobs. | Households are spending less, the housing market is weak, new car registrations have plunged and wage growth has fallen back, even though more people are in jobs. |
| On balance, the arguments in favour of leaving rates where they are look more compelling than the arguments for raising them | On balance, the arguments in favour of leaving rates where they are look more compelling than the arguments for raising them |
| The latest economic data has highlighted why the Bank is worried. UK retail sales volumes fell sharply last month, contracting by 1.2%. On an annual basis, Britons bought just 0.9% more stuff than a year ago -- the smallest rise in four years. | The latest economic data has highlighted why the Bank is worried. UK retail sales volumes fell sharply last month, contracting by 1.2%. On an annual basis, Britons bought just 0.9% more stuff than a year ago -- the smallest rise in four years. |
| City traders were jolted by the news, sending the FTSE 100 and 250 indices down sharply today. | City traders were jolted by the news, sending the FTSE 100 and 250 indices down sharply today. |
| Furniture maker DFS added to the anxiety by reporting that its sales have fallen materially in recent weeks. Its shares plunged by a fifth following this morning’s profits warning. | Furniture maker DFS added to the anxiety by reporting that its sales have fallen materially in recent weeks. Its shares plunged by a fifth following this morning’s profits warning. |
| Over in Luxembourg, eurozone finance ministers are discussing whether Greece has done enough to receive its next bailout tranche. There’s optimism that a deal could come tonight.... | Over in Luxembourg, eurozone finance ministers are discussing whether Greece has done enough to receive its next bailout tranche. There’s optimism that a deal could come tonight.... |
| City bigwigs won’t be heading to Mansion House for their annual black tie shindig; the dinner has been cancelled due to the Grenfell Tower disaster. | City bigwigs won’t be heading to Mansion House for their annual black tie shindig; the dinner has been cancelled due to the Grenfell Tower disaster. |