Greece bailout to cause rebellion in the German Parliament on Wednesday

Tuesday, 18. August 2015 17:20

A rebellion in Angela Merkel's bloc is predicted to take place on Wednesday in the German Parliament with regards to the third Greek bailout (€86bn; $95bn) that the Chancellor has been trying to advance. MPs want a guarantee that IMF will commit to the deal, which it is putting off until the assessment of Greece's progress in implementing necessary reforms. They are also concerned that Greece will receive a debt relief, which would lay a burden on EU taxpayers. IMF chief Christine Lagarde believes that debt relief is inevitable. Merkel leaves a possibility for debt restructuring, which might involve lowering loan interest rates or prolonging the repayment period. Although MPs doubt Greece's commitment to the deal's conditions as they were previously against the austerity measures, Greece announced on Tuesday that it had agreed to sell 14 regional airports to German transport company Fraport Slentel for €1.23bn. It is still expected that the majority will vote for the bailout. The loans will then be allotted over the next three years. The first one will be €26bn, €10bn of which will be used to recapitalize Greek banks and €16bn will be received in several instalments by August 20, out of which Greece has to repay about €3.2bn to the ECB.  
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