A woman raises a Greek flag during a rally against austerity across the Parliament instead of the Constitution (Syntagma) in Athens on June 30, 2011.
Credit: Reuters/John KolesidisBy Jan StrupczewskiBRUSSELS | SAT 2 July 2011 6 pm EDT
Brussels (Reuters) - will Ministers of Euro zone finance approve the next instalment of emergency aid for the Greece Saturday and discussed a plan of financing the second three years in Athens on July 11, responsible of the zone euro said.
The release of the tranche of 12 billion euros ($17 billion) of the euro and the Monetary Fund International was made possible after exceeded Greek Parliament of austerity and to reform the laws on Wednesday and Thursday, removing the threat of short-term debt default.
"The conditions are now in place for a decision on the payment of the next instalment of funding for the Greece and to move quickly on a second package of assistance," European Commission President José Manuel Barroso and the President of the European Herman van Rompuy said Thursday.
But in Germany, which funds much of the part of the European Union of the Greece rescue, said that laws must be transformed into action. "Decisions of the Parliament are one thing and their implementation," said the Minister for Foreign Affairs Guido Westerwelle.
"What is most important, if we want to strengthen the common European home and Greece, in particular, is it" said it Greece to Vima newspaper dans a published interview Saturday.
Athens failed on several occasions to meet budget targets set out in the first last year agreed with the EU and the IMF rescue plan International, increasing the risk that the crisis will spread across the euro area.
Second Greece program is to run from 2011 to 2014 and will come at the top of the current programme of EUR 110 billion.
The Ministers are unlikely to give many new details on the funding program second after their discussions, which will be held on the phone at 1600 GMT. Official sources of the zone euro said teleconference on Saturday would concentrate mainly on the releasing the next tranche of the aid for the Greece, the fifth rescue of last year's agreement.
"The Ministers will really focus the meeting on the fifth instalment." "The fact that they do not meet the person mean that there is no major obstacle to rule on this point," said official euro zone, who asked not be named.
Leaders of the EU is committed to the second program at their last Summit on June 23-24, which should satisfy the condition of the IMF that the euro zone must promise to finance the Greece 12 months for the IMF to contribute.
They said also for financing program would be taxpayers euro area but a substantial contribution from voluntary private investors via a reversal of the Greek debt.
Additional external funding for the Greece in this period, the public and private money, could be about 80-90 billion euros, officials said. The Greece should raise another 30 billion euros of privatization at the moment.
WHAT IS THE EXTENT OF THE PRIVATE SECTOR
On Saturday, Finance Ministers of 17 countries with the help of the euro and the European Central Bank President Jean-Claude Trichet are likely to discuss how many of the 80-90 billion euros would come from the private sector.
Private financial institutions held talks with Finance Ministry and Central Bank representatives in the countries of the euro area last week to discuss under what conditions the private sector would be willing to help finance the Greece and how much.
The participation of the private sector in the next package is a must for several countries in the euro area as voters grow increasingly more opposed to the burden of bailing the Greece on their own.
But the participation of the private sector must be voluntary to not trigger a further downgrade of Greek debt default status by rating agencies, a development that could put the Greek banking sector at risk.
The Institute of International Finance, a global association of financial institutions, said Friday that the "private financial community is ready to engage in a voluntary, cooperative, transparent and comprehensive effort in support of the Greece, held of his unique and exceptional circumstances."
The German Finance Minister Wolfgang Sch?uble said German banks wanted to ride on a value of 3.2 billion euros from the Greek obligations coming due in 2014.
French banks have reached an agreement on how to ride on a portion of their holdings of Greek debt, said French President Nicolas Sarkozy, but did not indicate the total amount.
Another meeting on 11 July will help finalize the second package of funding for the Greece, but officials said they would not surprised if the final decision was taken by the Ministers of finance in September.
(reports by Angeliki Koutantou Athens, additional editing by Matthew Jones and David Stamp)
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