Lithuanian government approves three-year bailout deal for Greece

  • 2015-08-17

On Monday August 17, 2015, the Lithuanian government approved a three-year bailout deal for Greece. 

The deal is worth 86 billion euros and will come from the the European Stability Mechanism (ESM) fund. 

The first allocation will be worth 26 billion euros.

The approval was issued due to Athens meeting the preconditions for the bailout, and committing to implementing far-reaching reforms.

The reforms are set to be made in the national tax and pension system, the labor market, and areas of competitiveness and public administration.

The Lithuanian government added Greece had agreed a specific reform plan with the European Commission, the European Central Bank and the International Monetary Fund.

The Lithuanian Finance Minister, Rimantas Sadzius, said the decisions made by Greece regarding the reforms showed the country is ready to adhere to long-term policy.

He added, however, that the European Union and the euro area needed to see guarantees in order for Athens to get the full amount of bailout money.

“It’s difficult to tell anything about political developments in Greece in the future, in particular as there are talks about early elections,” said Sadzius. 

“On the other hand, the results of Friday’s vote, which approved more than 50 of the predefined tasks, show a large part of political elite in Greece, and not just the ruling majority or the government, understands there is no other way.

“It’s a certain guarantee that the measures taken by the Greek authorities will have a long-term effect,” Sadzius told the reporters.

However, creditors would check Greece’s compliance with commitments each time before transferring money, he added.

On August 19, 2015, Sadzius will present Lithuania’s position at a meeting of the ESM Board of Governors and Directors.

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