Greek prime minister agrees to tough terms demanded by European finance ministers

“AGREEMENT,” Belgian Prime Minister Charles Michel tweeted on Monday, signalling that the Eurogroup had reached an agreement with Greece for a bailout deal.

A spokesman for the Greek Cypriot administration in Cyprus confirmed the announcement, tweeting “It seems we have a deal.”

At a press conference in Brussels on Monday, Eurogroup leader Jeroen Dijsselbloem outlined the accord.

The first step, Dijsselbloem said, is for the Greek parliament to legislate on the economic reforms agreed to in the accord. This should take place by Wednesday.

Assets will be transferred to a €50 billion ($54.1 billion) fund to be set up. The fund will monetise them by privatisation or running them. It will be used to help recapitalise banks.

Once the €25 billion ($27.9 billion) needed for recapitalisation of the banks is repaid, the remaining funds will be used to bring down debt by 50 percent, and the other 50 percent for the Greek government to reinvest into Greece, Dijsselbloem said.

The International Monetary Fund will play a central role in the administration of the deal.

There is a possibility of including bridge financing for Greece, he added, and that this will be considered by the Eurogroup this week.

“Trust was a very key issue, we looked at reforms, debts, financials needs. We were able to agree on all these issues to get Greece back on track,” Dijsselbloem said.

All eyes turn today to the Greek parliament, which must both ratify the accord, and begin passing economic reform legislation (Anadolu Agency).

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