The bailout for Greece that Eurozone finance ministers sealed last night amounts to 130 billion euros.
Its objective is to avert imminent chaotic default and to lay the foundation for a restabilization of the crisis-ridden country.
The measures include:
- imminent aid of 130 billion euros
- a cut by half of the interest rates of previous aid
- a 53.5% writedown of debts to private creditors
As a consequence, Greek debt is expected to hit 120.5% instead of 160% of GDP by 2020.
But the aid also depends on new austerity measures asked for by the Eurozone. There are fears in Greece that this will further deprive the country of its economic and financial independence.
At the same time, some economists remain sceptical about the impact of the plan: return to economic growth could take as much as one decade, many say.
Together with upcoming layoffs and cuts in government spending, this will do nothing to quell protests amongst the Greek population.