Greece to get €7 billion EU bridge loan

The European Union will lend €7 billion to Greece so that it can cover critical debt repayments in coming weeks, Commission Vice President Valdis Dombrovskis announced Wednesday in Brussels.

Before a third bailout package can be put in place, Greece has major short-term financing needs, including €7 billion before July 20, according to estimates agreed by eurozone leaders at the summit that ended early Monday.

The bridge loan is aimed at covering €4.2 billion the Greek government owes in repayments to the European Central Bank, €400 million owed to the Bank of Greece and an additional €2 billion in back payments to the International Monetary Fund accrued through June and on Monday.

Greece must pay its debt to the IMF before the new program begins, Dombrovskis said. The Fund’s participation in a third bailout is a political requirement for European leaders like German Chancellor Angela Merkel, who insist that a new deal secures the Fund’s support.

Read the rest at: http://www.politico.eu/article/greece-to-get-e7-billion-eu-bridge-loan/