World

After First Bailout Test, Greece Seeks Relief From European Lenders

NEWS WORLD INDIA | 0
96
| July 16 , 2015 , 13:42 IST
Greece's troubled left-wing government is seeking urgent relief from European lenders on Thursday, a day after it pushed a harsh austerity package through parliament, triggering a revolt in the ruling party and violent demonstrations in central Athens. [caption id="attachment_82722" align="aligncenter" width="700"]Greece's Prime Minister Alexis Tsipras, right, and Finance Minister Euclid Tsakalotos attend a parliament meeting in Athens, Thursday, July 16, 2015. Greece's Parliament has approved an austerity bill demanded by bailout creditors, despite a significant level of dissent from the governing leftist Syriza party. The bill to impose sweeping tax hikes and spending cuts was approved with the support of three pro-European opposition parties. (AP Photo/Thanassis Stavrakis) Greece's Prime Minister Alexis Tsipras, right, and Finance Minister Euclid Tsakalotos attend a parliament meeting in Athens, Thursday, July 16, 2015. Greece's Parliament has approved an austerity bill demanded by bailout creditors, despite a significant level of dissent from the governing leftist Syriza party. The bill to impose sweeping tax hikes and spending cuts was approved with the support of three pro-European opposition parties. (AP Photo/Thanassis Stavrakis)[/caption] Finance ministers from countries using the euro currency will hold a conference call to consider rescue financing for Greece, while the European Central Bank will mull a request from Athens to increase emergency assistance to troubled Greek banks that have been closed since July 29. In a post-midnight vote, Greece's parliament voted 229-64 to implement more austerity measures that include pension cuts and sweeping sales tax hikes. But the large majority was provided by pro-European opposition parties and in spite of deepening dissent within Prime Minister Alexis Tsipras' left-wing Syriza party. ALSO READ: Greece: PM Tsipras Faces Dissent On Bailout Deal [caption id="attachment_83055" align="alignright" width="408"]Greece's Finance Minister Euclid Tsakalotos Greece's Finance Minister Euclid Tsakalotos leaves after a parliament meeting in Athens, Thursday, July 16, 2015. Greece's Parliament has approved an austerity bill demanded by bailout creditors, despite a significant level of dissent from the governing leftist Syriza party. The bill to impose sweeping tax hikes and spending cuts was approved with the support of three pro-European opposition parties. (AP Photo/Thanassis Stavrakis)[/caption] Thirty-eight party lawmakers defied Tsipras — nearly one-in-four — including Tsipras' powerful energy minister, the speaker of parliament, and Yanis Varoufakis, the former finance minister who headed Greece's bailout strategy until his replacement 10 days ago. The government described the vote as marking a "serious division" among its lawmakers, and indicated that dissenters in Tsipras' cabinet would be swiftly replaced in a Cabinet reshuffle. Greeks have seen a dramatic decline in living standards since the debt-plagued country lost market access in 2010 and had to impose severe spending cuts in exchange for bailout loans from eurozone countries and the International Monetary Fund. Before the austerity vote, some 12,000 demonstrators gathered outside parliament in the biggest protest against the government since Tsipras won elections in late January. The rally turned violent and several hundred youths attacked police, torched cars, and smashed office displays. Police said about 50 people had been detained during the hour-long clashes that involved youths hurling rocks and petrol bombs outside parliament, and riot police responding with tear gas and baton charges. ALSO READ: Greece Avoids Euro Exit, Strikes Deal With Creditors [caption id="attachment_82639" align="alignleft" width="456"]Riot police try to avoid petrol bombs during clashes in Athens, Wednesday, July 15, 2015. Greece has a tentative rescue deal, but relief that it is not falling out of the euro is unlikely to last long: its economy has taken a huge hit. Months of political brinkmanship, uncertainty and bank closures have hurt companies and brought everyday business to a standstill. (AP Photo/Emilio Morenatti) Riot police try to avoid petrol bombs during clashes in Athens, Wednesday, July 15, 2015. Greece has a tentative rescue deal, but relief that it is not falling out of the euro is unlikely to last long: its economy has taken a huge hit. Months of political brinkmanship, uncertainty and bank closures have hurt companies and brought everyday business to a standstill. (AP Photo/Emilio Morenatti)[/caption] Tsipras said he had little choice other than to accept the harsh terms offered by lenders for the new three-year bailout worth 85 billion euros ($93 billion). "We had a very specific choice: A deal we largely disagreed with, or a chaotic default," he told parliament ahead of the vote. Syriza won the January election on a promise to end austerity, and the government acceptance of more cuts drew an angry reaction from many of its lawmakers — though none of the attacks were aimed at Tsipras. Parliament speaker Zoe Konstantopoulou slammed the deal as a product of blackmail, describing the additional poverty it would cause as an act of "social genocide." The vote came after more than two weeks of capital controls, with banks and the stock exchange shut since June 29 and ATM cash withdrawals limited to 60 euros per day. ALSO READ: Greece Gets ‘Bailed Out’, Compromised Deal Agreed Between Tsipras And EU Dangerously low on liquidity at banks and with the state practically out of cash, Greece desperately needs funds. It faces a Monday deadline to repay 4.2 billion euros ($4.6 billion) to the European Central Bank, and is also in arrears on 2 billion euros to the IMF. Negotiations on the new bailout will take an estimated four weeks, leaving European finance ministers scrambling to find ways to get Athens some money sooner. The European Commission has proposed giving Greece 7 billion euros in loans from a special fund overseen by all 28 EU nations so it can meet its upcoming debts.

Eurogroup To Stabilise Greece, Agrees On ESM Support | Focus News

[…] ALSO READ: After First Bailout Test, Greece Seeks Relief From European Lenders […]