Eurozone ministers seek end to Greece bailout odyssey

Greece austerity

Greece austerity

In addition to the carrot of disbursements, creditors also count on the stick of rising bond yields, which would endanger the access of the sovereign and private companies to debt markets should Greece not comply with its commitments.

Officials at the Frankfurt institution bought Greek debt under a scheme known as the Securities Markets Programme, created by the European Central Bank (ECB) to calm financial markets in troubled eurozone economies.

The final tranche of the Greek debt relief programme will include €3.3 billion for Greece's International Monetary Fund and European Central Bank repayment.

Greek President Prokopis Pavlopoulos (R) speaks with the Greek Prime Minister Alexis Tsipras during their meeting at the Presidential office, in Athens, Greece, on June 22, 2018.

"The Greek government is happy with the agreement", Greek Finance Minister Euclid Tsakalotos said after the talks.

Greece's 86-billion-euro programme was agreed in 2015 after six contentious months of negotiation and is set to end this summer, bringing the level of assistance received by Athens to 273 billion euros since 2010.

- Greece will maintain a primary surplus of 3.5 percent of its gross domestic product (GDP) until 2022 and, thereafter stick to EU budget rules, which would mean a primary surplus of 2.2 percent of GDP on average in the period from 2023 to 2060, according to European Commission estimates.

Opposite the hardliners, who also include the Netherlands and other northern eurozone countries, are France and the European Central Bank, which argue that reduced debt is crucial in order for Greece to gain the trust of the markets.

Following Thursday's decision, Greece will now have a more than 24 billion euros cash buffer to meet its financing needs over the next two years.

"Yesterday we had a historic agreement".

Germany has been one of the main lenders to Greece during its debt crisis and has profited massively.

To make a deal possible, Greek politicians last week pushed through a last batch of economic reforms required by the creditors, including pension cuts to health care and tax reforms.

"There is no doubt in our mind that Greece will be in a position to access financial markets", IMF Managing Director Christine Lagarde said, adding that for the medium term, the agreed measures would ensure Greek debt remained sustainable.

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