Eurogroup and Greek Parliament set to discuss new bailout agreement

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Eurogroup and Greek Parliament set to discuss new bailout agreement

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Not so much an economic wind of change more a breeze blowing through Athens after the deal was reached in principle on the 86 billion euro three-year bailout package.

Now politics are in the air. EU Commission President Claude Juncker will hold discussions with German Chancellor Angela Merkel and French President Francois Hollande. The Eurogroup will review the deal on Friday.

“For the Greek government the “hot August” continues. Reaching an agreement was the first step on the way to the third bailout. Now it faces finalizing the measures that will unlock the first tranche of the new funding which is set to happen in parallel with the vote of the whole agreement by the parliament. The result of that vote could perhaps determine whether the country is heading for elections for the second time this year,” said euronews correspondent Semela Touchtidou in Athens.

The pact, according to one Greek Finance Ministry official will lead to banks receiving 10 billion euros immediately and they will be recapitalized by the end of the year.

The new measures to be finalized include new laws on non-performing loans held by banks. Agreement was also reached on two other sticking points – setting up an asset sales fund and deregulation of the natural gas market.

The political seal of approval across Europe would mean Athens can meet its debt repayment of about three billion euros to the European Central Bank.

In a letter to the President of the Greek Parliament, Prime Minister Alexis Tsipras said his intention is to complete the process by the plenary session on Thursday.

He is expected to once again rely on opposition support to push the package through parliament.