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Greece to Get Another Round of Funds as Finance Ministers Approve Cost-Cutting Efforts

December 13, 2012 7:49 AM EST Send to a Friend
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Markets are mixed in early trading following news that European finance ministers gave the nod for another round of funding for Greece.

Officials of the 17 member euro zone though Greece was making enough promising steps for €49.1 billion (about $64 billion) of fresh funds, which will be delivered between now and next March. Greece will get €34.3 billion over the next few days.

To get the money, Greece had to agree to further spending and tax cuts, as well as complete a bond-buying program. Greece performed the latter earlier this week, purchasing about €31.9 billion ($41.5 billion) of bonds from private investors at a two-thirds discount. The move following a benchmark required by the International Monetary Fund (IMF) that Greece's debts should fall to 124 percent of annual economic output by 2020.

Since coming under the need for aid, Greece has received €150 billion in bailout funds. The European Central Bank, IMF, and European Commission have pledged €240 billion in total for Greece.

The BBC noted today that Greece's economy will have shrunk by about 20 percent since the financial fiasco began in 2008.




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