Greece received the first 13 billion euro ($14.5 billion) payment of its
new bailout on Thursday Aug 20,2015, with 12 billion euros earmarked for repaying
debts and the remainder for settling arrears to public sector suppliers.
Athens was using the funds to repay a 3.2 billion euro ($3.5 billion)
debt installment due on Thursday to the European Central Bank, an amount
it could not have afforded to repay without the bailout from 18 other
European nations that share the euro currency with Greece.
European bailout fund supervisors approved the release Wednesday evening Aug 19,2015
Without the rescue loans Greece’s third bailout in little more than five
years, the country would have defaulted on its debts and faced being
forced out of the Eurozone.
The new three-year bailout is worth 86 billion euros ($95.6 billion),
and the disbursement of funds is dependent on the Greek government
implementing a series of reforms, including steep tax hikes and spending
cuts.
Accepting the conditions was a major reversal of policy for Prime
Minister Alexis Tsipras and the coalition government between his radical
left Syriza party and the small nationalist Independent Greeks. It has
cost him a major rebellion within Syriza that threatens to split the
party and could lead to an early election as soon as next month.
Alexis Tsipras has been contemplating his options after a parliament vote to
approve the bailout conditions led to dozens of his own party lawmakers
voting against him. Among the options being discussed are for him to
call a vote of confidence in his government or to call an early
election, potentially in September 2015
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