3 Jul 2011

Europe clears urgent aid for Greece

3:20 pm on 3 July 2011

Eurozone finance ministers have cleared the way for Greece to receive urgent funds to avoid imminent bankruptcy.

Greece is expected to receive 12 billion euros from the eurozone and International Monetary Fund within two weeks, part of last year's 110bn euro financial rescue package.

The Greek parliament responded to EU and IMF demands last week by passing 28.4bn euros in budget cuts and tax hikes and a 50bn euros privatisation programme, despite rioting in the streets of Athens.

Greek Finance Minister Evangelos Venizelos pledged that Athens would fulfill its end of the bargain as he welcomed the release of the next tranche, saying it "strengthened the country's international credibility".

"What is crucial now is the timely and effective implementation of the decisions taken in parliament, so we can gradually emerge from the crisis in the interest of national economy and the Greek citizens," he added.