In the true spirit of Christmas, Greece will be given a whopping great gift this year. No, not a puppy, but a 34.4 billion Euro loan disbursement.
German Chancellor Angela Merkel is playing the role of Santa (minus the beard sadly) and has decided that Greece has been well behaved enough to earn this latest sizeable gift.
Previously Germany has been reluctant to further fund the floundering Eurozone member but speaking to the German parliament in Berlin today Merkel said: ‘I hope that the Euro group will be able to decide to disburse a new tranche for Greece today. Everyone who knows the situation in Greece knows it is really important that the Greek government can pay its outstanding bills and recapitalise its banks.’
The support of the largest economy in the Eurozone is essential if Greece is to get back on its feet and become a solvent member of the currency bloc once more.
The struggling nation has made significant efforts in recent months to reduce its mammoth debt and now European financial chiefs will meet in Brussels, bringing 14 hours of negotiations and weeks of uncertainty to an end by okaying this new bout of aid.
Earlier this week the Greek government revealed its plans to keep the backing of the EU and International Monetary Fund through reducing its debt burden by outlaying 11.29 billion Euros to repurchase 31.9 billion Euros of bonds.
If they are to buy back all debt accrued Greece will need permission to spend more than the 10 billion Euro loan agreed.
Olli Rehn, the European Union Economic and Monetary Affairs Commissioner, asserted: ‘I’m confident that we will find a decision today, we will agree on a way forward. Today’s decision on the Greek package will remove the doubts that are handing over Greece. It has been quite an odyssey.’
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As of 11:05 am
The Pound to Euro exchange rate is currently trading at 1.2345
The Pound to US Dollar exchange rate is currently trading at 1.6124
The Pound to Australian Dollar exchange rate is currently trading at 1.5291
The Euro to US Dollar exchange rate is currently trading at 1.3056
The Euro to Pound exchange rate is currently trading at 0.8097
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