EU approves 7 Billion Euro Short-Term Loan to Greece
- The European Union (EU) has approved a short-term loan of 7.16
billion euros to Greece after it was backed by the 28 member states.
- This loan will allow Greece to pay its debt to European
Central Bank (ECB) and the International Monetary Fund (IMF) till new bailout
plan is ratified.
- The loan will be given through the European Financial
Stabilisation Mechanism (EFSM) which is a rescue fund set up during the first
time bailout of Greece in 2010.
- But presently it covers the whole of the 28 EU member
nations and not just the 19 eurozone members.
- This loan fund will be officially for three months, but
looking at present debt crisis of Greece it can be sustained until 20 August