Greece Aid Deal Seen At EUR20B-EUR30B, Interest Rate 5%-5.5%
ATHENS (Dow Jones)--A joint European Union-International Monetary Fund loan package for Greece will total between EUR20 billion and EUR30 billion and carry an interest rate of between 5% and 5.5%, privately owned Mega television reports Sunday.
The report comes just ahead of a key conference call of euro zone finance ministers later Sunday, when the 16 members of the currency bloc are to hammer out final details of the loan package.
Euro-zone countries last month agreed that, if needed, they would give Greece a series of loans in concert with an IMF package. However, the specific details of the package have been held up, in part, due to a dispute over the interest rates Greece would be charged by its fellow EU members.
Greece's borrowing costs have soared after investors dumped Greek bonds in a series of volatile trading sessions last week.
The government, which plans to tap financial markets with a EUR1.2 billion T-bill auction this Tuesday, hopes investor jitters will be calmed once details of the aid package emerge, and as Greece moves to fully implement its three-year reform and austerity program.
According to Mega, two-thirds of the total package will come from other euro-zone member countries, and one third from the IMF.
The report says the Greek government is awaiting details of the package and will gauge market reaction Monday before deciding whether to formally seek aid.
-By Alkman Granitsas, Dow Jones Newswires; +30 210 331 2881; alkman.granitsas@dowjones.com |
