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Greece crisis: Eurogroup agrees to third bailout | |
(about 5 hours later) | |
Eurozone finance ministers have agreed on a new bailout deal for Greece after Athens backed the plan. | |
European Commission President Jean-Claude Juncker said the deal sent a message "loud and clear" - Greece will stay in the eurozone. | |
The agreement demands tax rises and more tough spending cuts in return for Greece's third bailout in five years. | |
The deal means new loans of up to €86bn ($95bn; £61bn) will be made available over the next three years. | |
But it comes at a heavy political price for Greek Prime Minister Alexis Tsipras, who has faced a rebellion in his left-wing Syriza party. | But it comes at a heavy political price for Greek Prime Minister Alexis Tsipras, who has faced a rebellion in his left-wing Syriza party. |
More than 40 Syriza MPs voted against him when parliament decided on the bailout agreement on Friday, after all-night talks. | More than 40 Syriza MPs voted against him when parliament decided on the bailout agreement on Friday, after all-night talks. |
Reports in Greece suggest he will seek a vote of confidence in parliament next week, bringing the prospect of snap elections closer. | Reports in Greece suggest he will seek a vote of confidence in parliament next week, bringing the prospect of snap elections closer. |
'Optimistic' | 'Optimistic' |
Announcing the "comprehensive and ambitious reform package", Eurogroup chairman Jeroen Dijsselbloem said: "All the intense work of the past week has paid off. | |
"If implemented with determination, the deal will allow the Greek economy to return to growth." | |
He added: "Of course there were differences, but we have managed to solve the last issues." | |
Mr Juncker said: "The past six months have been difficult. They have tested the patience of policy-makers and they have tested the patience of our citizens even more. | |
"Together, we have looked into the abyss. But today, I am glad to say that all sides have respected their commitments." | |
He added: "The message of today's Eurogroup is loud and clear: on this basis, Greece is and will irreversibly remain a member of the euro area." | |
The first tranche will be of €26bn - €10bn to recapitalise Greek banks and €16bn in several instalments, the first of which - €13bn - will be made by 20 August, when Greece must repay about €3.2bn to the European Central Bank (ECB). | |
The deal rules out any "bail-in" of depositors' savings in Greek banks. | |
There will also have to be a series of votes in national parliaments across Europe to back the deal. | |
The BBC's Adam Fleming in Brussels says the finance ministers also confirmed that the thorny issue of writing off some of the Greece's debts would be considered in the autumn. | |
This has been a crucial demand of both Mr Tspiras and the International Monetary Fund, which says it will only contribute if there is some form of debt relief. | |
IMF managing director Christine Lagarde said the deal was "an important step forward" but stressed again that Greek debt was "unsustainable". | |
Arriving at the 19-member Eurogroup meeting in Brussels earlier, even German Finance Minister Wolfgang Schaeuble - one of Mr Tsipras's harshest critics - said he was optimistic of a deal. | |
Rebellion | Rebellion |
Greek MPs backed the deal on Friday morning after a marathon all-night session marked by procedural delays and often angry exchanges in parliament. | Greek MPs backed the deal on Friday morning after a marathon all-night session marked by procedural delays and often angry exchanges in parliament. |
The deal received: | The deal received: |
Third Greece bailout: What are eurozone conditions? | Third Greece bailout: What are eurozone conditions? |
Thirty-one Syriza members voted "No", and 11 abstained - the biggest rebellion within Mr Tsipras's party so far. | |
The rebels represented almost a third of Syriza's MPs. | |