Euro zone approves 8 billion euro loans to Greece

Euro zone finance ministers have thrown Greece a lifeline by agreeing to approve eight billion euros in loans that Athens needs next month to pay its bills.

The IMF still needs to sign off on its share of the bailout but sources suggest boss Christine Lagarde is in agreement.

Ministers met in Brussels ahead of EU leaders’ talks as a downbeat EU and IMF report was released. It suggested private holders of Greek debt may need to accept losses of up to 60 per cent on their investments if the country’s debt mountain is to be made more sustainable in the long-term.

Our correspondent in Brussels, Audrey Tilve, said: “Friday was the beginning of a long marathon which will continue until Wednesday with, perhaps, at the finish, protection for the weak links of the euro zone. But, judging by the bitterness of the negotiations, that is still far from certain.”

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