EU recommends next loan tranche payment to Greece
European Union Economic and Monetary Affairs Commissioner Olli Rehn (L) and Spain's Economy Minister Elena Salgado. The EU and International Monetary Fund put together a 110-billion-euro (141-billion-dollar) rescue package for Greece. Photo/REUTERS
The European Commission recommended Thursday that debt-stricken Greece should get the second tranche of a rescue loan arranged in May after Athens met conditions set for the payment.
The EU and International Monetary Fund put together a 110-billion-euro (141-billion-dollar) rescue package for Greece in return for a series of biting austerity measures aimed at restoring its public finances to health.
Some 20 billion euros was handed over in a first tranche, with nine billion euros due in the second.
"Greece has managed impressive budgetary consolidation during the first half of 2010 and has achieved swift progress with major structural reforms," Economic and Monetary Affairs Commissioner Olli Rehn said.
Rehn added, however, that "despite the significant progress made, challenges and risks remain.
"The main immediate challenge is to safeguard adequate liquidity and financial stability of the banking sector.
"At the same time, the structural reform agenda needs to be pressed ahead to unleash the huge potential for raising growth".
