Economy World

Greece: European banks unlock 54 billion euros

European banks, including the Franco-Belgian Dexia, intend to release 54 billion euros by 2014 to help Greece to manage the crisis of sovereign debt, announced on the radio in Brussels on Friday.

On Thursday the leaders of the euro area in Brussels decided to allocate a total of 159 billion euros in Athens as a long-term support.

The new aid package – the second – is spread through the end of 2014. It provides two funding sources: loans granted by the EU and the International Monetary Fund (IMF) amounting to 109 billion euros and 50 billion of loans granted by banks, insurers and investment fund holding Greek bonds. They have agreed to exchange such bonds or against the securities of longer duration, or new loans to Greece as soon as it paid those matured.

Sovereign debt of Greece now stands at 350 billion euros, or nearly 160% of GDP.

The first aid package of 110 billion created in May 2010 was insufficient to help the country to ensure only the debt service from 2012.

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