Greece Reaches Deal on next Slice of Bailout Aid

Greece and its international creditors reached a tentative deal on Tuesday on economic and financial overhauls Athens must deliver in exchange for its next slice of EUR2 billion ($2.1 billion) financial aid, three officials said.

The agreement, struck between the two sides in the early hours, will also pave the way for a key disbursement of EUR10 billion in fresh loans that Athens can use to recapitalize its troubled banks.

Under the EUR86 billion bailout deal reached this summer, Greece had to implement 48 promised overhauls, known as milestones, in return for EUR2 billion in loans meant to help the government pay salaries and bills, and settle domestic arrears.

“We have agreement on everything, all 48 prior actions,” said Greek Finance Minister Euclid Tsakalotos Thursday after the latest negotiations.

Completing the first set of reforms, alongside some extra ones related to the financial sector was a prerequisite for Greece to receive some additional EUR10 billion set aside by the country’s creditors for its banks.

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Craig Erlam
Based in London, England, Craig Erlam joined OANDA in 2015 as a Market Analyst. With more than five years' experience as a financial market analyst and trader, he focuses on both fundamental and technical analysis while conducting macroeconomic commentary. He has been published by The Financial Times, Reuters, the BBC and The Telegraph, and he also appears regularly as a guest commentator on Bloomberg TV, CNBC, FOX Business and BNN. Craig holds a full membership to the Society of Technical Analysts and he is recognized as a Certified Financial Technician by the International Federation of Technical Analysts.