ATHENS — Greek government officials say they have reached an agreement with its creditors on the terms to restart bailout loan payouts, following months of tough negotiations.
Following months of tough negotiations, the government and creditors another round of pension cuts in 2019 and a commitment to maintain a high primary budget surplus along with new tax increases, after the current bailout program ends next year.after the current rescue program ends next year.
In return, the creditors will pay Greece 2.8 billion euros ($3.1 billion) it needs to avoid defaulting on its loans in July, and start talks on how to ease the country’s debt burden.
Prime Minister Alexis Tsipras’ left-wing government is set to approve the new cuts in parliament by mid-May, so that finance ministers from the nations using the euro can unfreeze more bailout funds at a scheduled meeting on May 22.
After a run of recent gains, shares on the Athens Stock Exchange were up nearly 3 percent on the news of the agreement. Government borrowing costs were also lower, a sign of growing investor confidence, with the rate on Greece 2-year-bond dipping below 6 percent, compared with 10 percent in February.
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