Greece to receive €43.7 billion from EU

The European Union plans to grant Greece a financial tranche of €43.7 billion and write of its debt to 124% of the GDP. €10.6 billion of the sum will be spent on financing the budget and €23.8 billion in a form of bonds of the EFSF for recapitalization of banks in December.

The finances will be granted in three tranches in Q1 2013, depending on fulfillment of the economic program.

The final decision will most likely be made on December 13.

EU states and the IMF plan to reduce Greece’s debt from 144% to 124% of the GDP before 2020 to unblock the tranche credit to save the country from default. The debt should drop to 110% of the GDP before 2022. The debt is expected to reach 175% of the GDP in 2016.

Europe plans to reduce the margin of loans granted in 2010-2011 by 100 basic points, President of the Euro Group Jean-Claude Juncker says. EU states offer to extend the terms of loan payments by 15 years and interest rate of EFSF loans by 10 years.

Investors have written off about €100 billion of debts of Greece this year. Greece still owes €300 billion to the euro zone, ECB and IMF.