Debt relief for Greece is condition for further savings

Tsipras debt reliefGreece will implement additional austerity measures agreed with official creditors, subject to further debt relief, which will allow the country to be entered into the purchase of bonds by the European Central Bank (ECB). Athens struck a deal with its international lenders on Friday on key elements of a reform package that could trigger the granting of financial assistance to the country.

“The medium-term measures to alleviate the debts that can make us join the program of quantitative easing from the ECB and the fiscal path that will be unattainable condition for us to implement the measures discussed”, said Alexis Tsipras in front of the committee of the party Syriza.

On Friday, Greece and its creditors have reached a breakthrough in negotiations on the allocation of the next tranche of bailout. Sources indicate that there has been a political compromise on further spending cuts and reforms.

The compromise allows creditors to Greece to complete examination of the finances of the country and to unblock the next tranche of the loan agreed in June 2015.

Greece needs the loan in the coming months from European Stability Mechanism (ESM) – the Eurozone rescue fund – to be able to make payments on its debt in the summer.