Greece bailout programme: Full agreement after marathon negotiations on debt relief between IMF and Eurozone

May 25, 2016 by Chris Anyfantis 1 Comment

From left to right: Mr Wolfgang SCHAUBLE, German Federal Minister for Finance; Mr Jeroen DIJSSELBLOEM, President of the Eurogroup; Mr Pierre GRAMEGNA, Luxembourg Minister of Finance.
Date: 24/05/2016. Location: Brussels – Belgium. © European Union, 2016

The Finance ministers of the Eurozone met yesterday in Brussels to discuss mainly on the implementation of Greece’s ESM economic adjustment programme and have come to a final deal which will lead to the conclusion of the first review unlocking the second tranche of 10,3 billion euros. The Ministers gave a direct assignment to the Euroworking group which will have to confirm whether the Greek legislations are in line with the reforms that have been requested in the last Eurogroup; a mandatory action for completing the review. The long lasting issue of the Greek debt relief was the major problem and as expected there was not a common path between Germany and the International Monetary Fund (IMF). The IMF supported a debt relief in order to keep on participating to the programme but the biggest economy in Europe didn’t want to “touch” it before the German elections. Nevertheless, both the IMF and Germany though managed to find a common solution compromising to their initial positions. Greece’s austerity measures Last Sunday, the Greek parliament voted 1,8 billion euros of measures in order to be in line with their commitments towards their creditors assuring that they will conclude the review. What is more, the government of Alexis Tsipras created a privatization fund to sell off state assets. The anti-popular measures are about to be reviewed by the technical staff of the Euroworking group and give the green light to whether they comply with the instructions of the Eurozone Finance Ministers. It has been said during yesterday’s meeting that there are some details concerning the pension system, privatizations and the “red” loans which are guaranteed by the Greek state but are not likely to cause major problems regarding the release of the next tranche. The second tranche The conclusion of the first review will provide to the country with a loan tranche of 10,3 billion euros. The aforementioned amount will be released in two installments. In June the Greek government will receive 7,5 billion euros whereas the rest 2,8 billion euros will be withdrawal in September. A large amount though will end up to Greece’s creditors since the country has to repay loans to the IMF and the European Central Bank (ECB) which are due in July. Therefore, the money to support the real economy are even less with the country to have also fallen behind its everyday duties and wages. Debt relief: The thorn in Eurogroup’s negotiations The issue of the Greek debt relief was the one that monopolized last night negotiations with the IMF and Germany to support different opinions. On the one hand, the IMF believes that the Greek debt is unsustainable and must be cut posing as an argument also its latest report which reveals that without a haircut the debt will reach 250% of output by 2060. On the other hand, the European side has made it clear that there will not be a haircut of the debt but Europe will help with the debt burden by using other means. More specifically, the president of Eurogroup, mentioned yesterday at his arrival for the meeting with the other EU Ministers: “an actual haircut of the loan will not happen, there is no support for that in the Eurogroup. What we can look at is the annual debt burden, so can Greece in an annual basis pay its debt and if not we are ready to help them in the coming years and to take away some of those problems.” However, the IMF “pressed” Europe, with its participation to the programme, to implement debt restructuring measures for Greece in the next years in order to assure its viability. Thus, after long and hard discussions, it is agreed that a three stages (short-term, mid-term, long-term) “roadmap” of debt adjustment will be created. The short-term measures contain debt management by the ESM such as reducing interest rate risks whereas the mid and long-term ones will be applied, if needed, after 2018. Eurozone Ministers managed to convince the IMF to participate to the programme at the end of the year but the Washington institution will have first to draft a revised Debt Sustainability Assessment in order to evaluate the debt situation and make its final decision. All in all, Greece managed to receive the approval of the Eurozone Finance Ministers and of the IMF as far as the review of the programme and the sustainability of its debt. The latter has been a very important accomplishment for Greece but was achieved through “harsh” and antipopular tax measures which are most likely to influence negatively, at least in the short-run, the lives of the Greek citizens.

Discover more from The European Sting - Critical News & Insights on European Politics, Economy, Foreign Affairs, Business & Technology - europeansting.com

Subscribe to get the latest posts sent to your email.

© UNDP/Oleksandr Ratushniak A substation in Ukraine damaged during ongoing strikes in the war with Russia.

Ukraine: Drone attacks on Chornobyl are ‘gambling with the safety of millions of people’

September 11, 2026

This article is published in association with United Nations. A drone strike on the protective structure at the Chornobyl Nuclear Power Plant could have endangered the safety of millions of people, UN Development Programme (UNDP) Administrator Alexander De Croo told reporters via video link from Kyiv on Thursday. He is visiting Ukraine, with his mission focused […]

© UNHCR/Dar Al Mussawir Smoke rises above residential neighborhoods in Tyre, southern Lebanon, following an Israeli airstrike. (file)

UN chief demands Israeli withdrawal from Lebanon amid Nabatieh escalation

September 10, 2026

This article is published in association with United Nations. The Secretary-General has condemned mounting civilian casualties in southern Lebanon and called on Israel to withdraw its forces from Lebanese territory, as fighting intensifies in and around Nabatieh. Key points In a statement issued by his Spokesperson, Stéphane Dujarric, the Secretary-General said he was “deeply concerned” by […]

UN chief demands Israeli withdrawal from Lebanon amid Nabatieh escalation

September 9, 2026

© UNOCHA/Viktoriia Andriievska The aftermath of a drone strike in Kyiv, Ukraine (file). UN High Commissioner for Human Rights Volker Türk (file) said on Monday that he was "horrified" by the thought of fully autonomous weapons being used in battle.

AI: Türk urges action before it becomes an ‘existential risk to humanity’

September 8, 2026

This article is published in association with United Nations. UN human rights chief Volker Türk added his voice on Monday to growing calls for greater AI controls, warning that the revolutionary technology could become an “existential risk to humanity” if left unchecked. Without binding rules, independent oversight and clear limits, the technology could become impossible to […]

As wildfires spread north, UN agencies race to help Europe adapt

September 7, 2026

This article is published in association with United Nations. As the climate warms, the threat of wildfires is spreading in Europe. How can historically cooler and wetter countries prepare? Human activity causes most of the wildfires breaking out across Europe, but their spread, speed and intensity are strongly affected by the warmer, drier conditions associated with […]

© UNICEF-SoP/Crickx People walk down a dusty road in the West Bank carrying belongings.

West Bank: UN rights report warns of forcible displacement from three refugee camps

September 5, 2026

This article is published in association with United Nations. Israeli security forces forcibly displaced the entire population of three Palestine refugee camps in the occupied West Bank in January and February last year – and continue to prevent their return, in violation of international law, according to a new report by the UN human rights office, OHCHR. […]

©UNIFIL/Tilak Pokharel UNIFIL personnel distribute food kits to displaced families in Saida, Lebanon.

Lebanon–Israel tensions escalate as Gaza sees major aid delivery

September 4, 2026

This article is published in association with United Nations. Peacekeepers in Lebanon have reported a marked deterioration in the security situation along the Blue Line of separation, with Israeli forces intensifying their military footprint in violation of a landmark Security Council resolution, UN Spokesperson Stéphane Dujarric said on Thursday. Meanwhile, in Gaza, humanitarian teams collected hundreds […]

This article is brought to you in association with the European Commission.

World News in Brief: US-Iran war intensifies, aid for Myanmar, casualties in Ukraine

September 3, 2026

This article is published in association with United Nations. Fighting between the United States and Iran has sharply escalated after a month-long lull, with the two sides exchanging strikes as fears grow over further civilian casualties. The US military struck rocket launchers on an island in the Strait of Hormuz over the weekend, days after US […]

© WFP/Hugh Rutherford A family eat lunch in the Bedouin community of Umm Al Khair, West Bank.

Food aid cutback in the occupied West Bank as health fears grow in Gaza

September 2, 2026

This article is published in association with United Nations. Lack of funding has forced the World Food Programme (WFP) to slash aid to families in the West Bank by half even though needs have more than doubled over the past two years. “We’re running out of funding, and that means that from today, some 200,000 people […]

© UNICEF/Laxmi Prasad Ngakhusi Mud covers Nuwakot district in central-northern Nepal following devastating flash floods.

Nepal flooding deaths surpass 900 as needs climb

September 1, 2026

This article is published in association with United Nations. The confirmed death toll from Nepal’s catastrophic floods has surged to 903, with more than 4,200 still missing as rescue crews and humanitarian workers battle blocked highways to reach the hardest-hit areas, UN Spokesperson Stéphane Dujarric said on Monday. Key points Triggered by a glacier collapse and […]

© WFP/Mohamad Al Hinnawi Brothers sitting outside their family’s tent in Gaza.

Four children killed as separate attacks in Gaza destroy aid supplies

August 31, 2026

This article is published in association with United Nations. Israeli attacks killed four children and destroyed humanitarian aid supplies in what turned out to be a deadly week in war-ravaged Gaza, the UN emergency relief agency, OCHA, said on Friday. Key points According to UNICEF, the four children – aged two to 16 – were reportedly […]

© UNICEF Buildings are submerged in mud following flash floods in Rasuwa district in central-northern Nepal.

Deadly floods cause widespread destruction in China, Nepal

August 27, 2026

This article is published in association with United Nations. Severe flooding in China and Nepal caused widespread destruction and mounting death tolls, UN agencies reported on Wednesday as aid efforts deployed to help provide emergency assistance. UN agencies and humanitarian partners are already providing support to local authorities, said UN Spokesperson Stéphane Dujarric. “The Secretary-General is […]

This article is published in association with European Investment Bank.

As wars spread, the global food system unravels

August 26, 2026

This article is published in association with United Nations. A family with four children abandoned its farm in Somalia after armed groups arrived and demanded payments for the right to continue cultivating the land. They walked roughly 100 kilometers to a displacement camp. One of the children died along the way. Carl Skau, the acting head […]

Gaza: Children still at risk despite drop in acute hunger

August 25, 2026

This article is published in association with United Nations. Among tent cities pitched on the rubble of destroyed homes in Gaza, children are, by one measure, finally getting enough to eat. By another, however, many of them may never fully recover, according to a new study by the UN Children’s Fund (UNICEF) released on Monday. Key points Hunger […]

UN Photo/Elma Okic Secretary-General of the International Telecommunication Union (ITU) Doreen Bogdan-Martin speaks at the AI for Good Global Summit in Geneva. (file)

AI for Good: How the UN uses AI to advance human rights

August 24, 2026

This article is published in association with United Nations. For Ari, a six-year-old boy with learning difficulties in Jamaica, artificial intelligence (AI) opened the door to something many children take for granted: reading a book in his own language. Thousands of miles away, gold miners in Ethiopia are being screened more quickly for tuberculosis, while communities around […]

This article was exclusively written for The European Sting by Ms. Imane El Maimouni, a 22-year-old fifth-year Moroccan medical student at the Faculty of Medicine and Pharmacy of Casablanca. She is affiliated with the International Federation of Medical Students Associations (IFMSA), cordial partner of The Sting. The opinions expressed in this piece belong strictly to the writer and do not necessarily reflect IFMSA’s view on the topic, nor The European Sting’s one.

Who heals the healers?

August 22, 2026

This article was exclusively written for The European Sting by Ms. Levina Kulembeka, a Medical Doctor from Tanzania passionate about global health. She is affiliated with the International Federation of Medical Students Associations (IFMSA), cordial partner of The Sting. The opinions expressed in this piece belong strictly to the writer and do not necessarily reflect IFMSA’s view on […]

Middle East: 94 per cent need shelter in Gaza, Israel ramps up demolitions in Lebanon

August 21, 2026

This article is published in association with United Nations. Ninety-four cent of Gaza’s 2.1 million residents need shelter as Israeli gunfire and strikes continue inside the enclave, UN agencies and peacekeepers warned on Thursday. Key points More than four out of five families currently face critical or catastrophic living conditions, which lack fuel, energy and essential […]

© IOM/Lisa George Flooding in Sudan has displaced 20,000 people since June (file).

Sudan war: 200,000 newly displaced as fighting and floods intensify

August 20, 2026

This article is published in association with United Nations. Intensifying fighting in Sudan has displaced at least another 200,000 people since late 2025, while destructive seasonal floods are compounding the massive humanitarian emergency there, the UN International Organization for Migration (IOM) said on Wednesday. In an alert, the agency also warned that relief access has been […]

© UNRWA/Kazem Abu-Khalaf A girl looks out the window of her home in the Jenin refugee camp in the West Bank, where she and other family members were trapped during an Israeli military operation.

Raising alarm over new illegal Israeli outposts, UN condemns attacks, incitement against Palestinians

August 20, 2026

This article is published in association with United Nations. Reports of new illegal Israeli outposts in the occupied West Bank raised alarms at UN Headquarters on Wednesday while the UN rights office called on Israel to condemn its national security minister’s words that incite “violence amounting to atrocity crimes” against Palestinians. Key points “The Secretary-General is […]