BRUSSELS |
BRUSSELS (Reuters) – Euro zone finance ministers inched towards approving a second bailout for debt-laden Greece on Monday that would resolve Athens’ immediate repayment needs but seems unlikely to revive the nation’s shattered economy.
Agreement on a 130-billion-euro rescue package on strict conditions would draw a line under months of uncertainty that has shaken the currency bloc, and avert an imminent bankruptcy.
As the ministers met, officials were struggling to make the numbers add up. EU sources said they had to find a further 6 billion euros, via various options, to make the financing work, and private investors might have to take bigger losses.
A report prepared for ministers by EU, European Central Bank and IMF experts, obtained exclusively by Reuters, said Greece would need extra relief to cut its debts to the official target of 120 percent of GDP by 2020.
If it did not follow through on structural economic reforms and savings, its debt could hit 160 percent
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