(Newswire.net — July 13, 2015) — Greece stays in Eurozone, EU officials confirmed after marathon 17 hour long negotiations on which the creditors agreed on a three-year bailout for debt-ridden Greece worth around €82-86 billion, Russia Today reported.
EU leaders reached the agreement “unanimously,” according to the President of the European Council Donald Tusk, adding that the so-called ‘Grexit’ is no longer on the agenda.
“The decision gives Greece the chance to get back on track with the support of European partners,” tusk said adding that there will be “strict conditions” for Greece to comply.
The new program is not quite what Greeks expected as it will affect the social components, such as pension reform, and labor exchanges. Greeks will reform the product markets and privatization as well, German Chancellor Angela Merkel said Monday after the Eurozone summit.
“We have been long engaged in the matter of the size of the program, which is very significant – from €82 to €86 billion over three years,” she said at a news conference, adding that Greece will stay in the Eurozone, however, there will be no write-off of Greece’s debt.
According to the agreement, Greece will set up a €50 billion fund to repay its debt, Eurogroup President Jeroen Dijsselbloem said, adding that the fund will be based in Greece.
“The fund will be aimed at solving the debt problem, or debt reduction, and it can be used to recapitalize banks,” said Dijsselbloem.
The problem of the recapitalization of banks, however, is one of the key problems which will require half of the €50 billion fund.
“The new deal is too tough, too late,” said a former Greek ambassador to EU Leonidas Chrysanthopoulos, adding that it would be the “death of Greeks.” Despite the concessions the EU has made to Greece, the country is far from being out of the crisis, he told the RT.
“All in all, the advantages outweigh the disadvantages…I think that Greece has a chance to return to the path of growth,” Merkel said.
The Greek parliament has to approve all the reform laws by July 15 in order to receive the aid, RT cited Dijsselbloem.