EU approves 7 Billion Euro Short-Term Loan to Greece

Highlights:

  • 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 2015.