Euro zone agrees on debt relief package for Greece

Euro zone agrees on debt relief package for Greece

Louisa Gouliamaki | AFP | Getty Images
A woman walks past a graffiti refering to the Greek debt and reading 'Forever a loan' outside the Academy of Athens building on August 28, 2017.

Euro zone finance ministers agreed in the early hours of Friday a debt relief package for Greece and a new disbursement of 15 billion euros as part of its current 86-billion-euro bailout program, the head of euro zone finance ministers said.

The deal involves a 10-year extension of maturities on loans from the European Financial Stability Facility and a 10-year deferral on interest payments, Mario Centeno told a news conference.

Centeno added that this will allow Greece to issue bonds across the yield curve. Athens is also likely to pay lower borrowing costs on its new bonds as the new package of aid will help set up a cash buffer totaling 24.1 billion euros that would cover Greek financing needs for 21 months, Centeno said.

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