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WORLD NEWS Saturday 23 June 2018

For once in a tie, Greek PM Tsipras hails new debt deal

By NICHOLAS PAPHITIS an "historic moment."
ATHENS, Greece (AP) — For "I think it is the end of the
once sporting a necktie, Greek crisis," Tsakalotos said
Greek Prime Minister Alexis in Luxembourg early Friday.
Tsipras on Friday pledged "We believe the debt is now
to tread the path of fiscal sustainable and we will be
prudence after interna- able to tap markets."
tional creditors announced Greece's ability to finance
new debt relief measures itself after the end of its
to wean his country off third bailout was a key
its eight-year bailout pro- concern. The country has
gram. issued bonds three times
Tsipras said the deal ham- since the beginning of the
mered out early Friday in bailout, twice within the last
Luxembourg was a historic year. But investors charged
milestone for his austerity- high rates to lend Greece
battered country, whose the money.
third — and last — bailout Under Friday's decision,
deal runs out two months Greece will receive a final
from now. 15 billion-euro ($17 billion)
"Greece is once again be- bailout loan installment, 9.5
coming a normal country, billion of which will shore
regaining its political and up an existing cash kitty
financial independence," to keep the country afloat
Tsipras told a gathering of post-bailout.
the 153 lawmakers in his This, Greek officials said,
left-led governing coalition might even be used to
in Athens. pay off the country's debts
Greek bond markets rose to the IMF earlier than
on the news of the deal, planned.
leading to a drop in the Including previous loans
government's borrowing and financing Greece is
rates. The yield on Greece's drawing on, eurozone of-
benchmark 10-year bond ficials said the country will
eased 0.2 percentage have a buffer of 24.1 bil-
points to 4.1 percent. The lion euros that cover its fi-
main stock index opened nancial needs for about 22
more than 2 percent up, Greek Prime Minister Alexis Tsipras speaks to lawmakers from his left-led governing coalition in months after the end of the
but closed the day margin- Athens, on Friday, June 22, 2018. program. Hoping to soothe
ally down. Associated Press concerns over Greece's
"Our great challenge is not debt sustainability, Europe-
to return to fiscal derail- would only wear one when national bond markets af- "But this does not mean an creditors also pledged
ment but to prove that we Greece had settled its debt ter bailout loans run out in that we must abandon the to provide further future
can manage things on our problems. August. prudent path of fiscal bal- debt relief tweaks "in the
own," Tsipras told the law- Over the following three But it also means Tsipras' ance and structural reforms case of an unexpectedly
makers. years, he received several government will have to that the country needs," he more adverse scenario."
For the only time since he ties from the more playful stick to austerity measures added. "It means, howev- On the other hand, Greece
first assumed office in Janu- of his foreign colleagues. and reforms, including high er, that we are leaving the must achieve ambitious
ary 2015, Tsipras donned The agreement conclud- budget surpluses, for more thorny path of austerity." primary budget surpluses
a tie — a burgundy af- ed by finance ministers than 40 years. Greece will "From now on we have tar- — that is, surpluses that ex-
fair worn with a white shirt from fellow members of be monitored on a quarter- gets and we commit to ob- clude the cost of debt ser-
and blue suit. It sat slightly the 19-member eurozone ly basis, echoing the super- serve them, but it is at the vicing — of 3.5 percent until
askew, and he ostenta- grants Greece a ten-year vision of the bailout years. discretion of each Greek 2022, and an average 2.2
tiously removed it at the extension in repaying a Earlier Friday, Tsipras said government to select the percent from then to 2060.
end of his speech. large chunk of its crippling the measures render means for achieving these "Obviously we would have
The left-wing politician es- debt load. Greece's debt sustainable, targets," Tsipras said. been much happier with
chews neckties, while oth- And it provides the country exceed market expecta- Eurozone officials and the a lower fiscal surplus,"
erwise conforming to the with enough ready cash tions and repay a "moral International Monetary Tsakalotos said. "We think
dress code of international to coast it over nearly two debt" to the Greek people Fund hailed the decision, it's a tough requirement but
leaders. He said soon af- more years, without having for its long suffering during and Greek Finance Minister you have to take the whole
ter being elected that he to resort to expensive inter- the financial crisis. Euclid Tsakalotos spoke of package as one."q