Greece Passes Law Needed to Receive Bailout

Greek lawmakers on Sunday approved a reform law to unlock about 8.8 billion euros ($8.9 billion) of rescue loans from the European Union and the International Monetary Fund.

The law, which was a condition for further aid instalments, passed easily with the solid backing of the three parties comprising Greece’s ruling coalition, by 168 to 123 votes.

Following parliament’s approval, senior euro zone officials will meet on Monday to approve overdue payment of 2.8 billion euros ($3.65 billion) in rescue loans, finance minister Yannis Stournaras said.

Euro zone finance ministers will then meet on May 13 to release a further 6 billion euro instalment, he added.

Greece needs that money to pay wages, pensions and bonds held by the European Central Bank that mature on May 20.

The law implements an agreement Athens struck with EU/IMF inspectors earlier this month, which allowed them to state that the country was on track to meet its bailout targets.

The legislation makes it easier to fire government employees for disciplinary reasons, extends an unpopular property tax and opens up professions such as accountants and bakers.

via CNBC

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Alfonso Esparza

Alfonso Esparza

Senior Currency Analyst at Market Pulse
Alfonso Esparza specializes in macro forex strategies for North American and major currency pairs. Upon joining OANDA in 2007, Alfonso Esparza established the MarketPulseFX blog and he has since written extensively about central banks and global economic and political trends. Alfonso has also worked as a professional currency trader focused on North America and emerging markets. He has been published by The MarketWatch, Reuters, the Wall Street Journal and The Globe and Mail, and he also appears regularly as a guest commentator on networks including Bloomberg and BNN. He holds a finance degree from the Monterrey Institute of Technology and Higher Education (ITESM) and an MBA with a specialization on financial engineering and marketing from the University of Toronto.
Alfonso Esparza