New Greek bailout may total 120 bln euros-sources
By
Jan Strupczewski
BRUSSELS, June 9 | Thu Jun 9, 2011 9:49am EDT
BRUSSELS, June 9 (Reuters) - A new international bailout being put together for
Greece is likely to total around 120 billion euros, euro zone official sources said on Thursday, instead of the 90 billion euro figure previously suggested by officials.
German Finance Minister Wolfgang Schaeuble told coalition members of parliament on Wednesday that Greece needed an additional 90 billion euros in a second rescue package that would get the country through 2014. [ID:nLDE7580WN]
But several
euro zone sources told Reuters that this number referred only to the total sum to be provided by official donors -- the European Union and the International Monetary Fund -- and private investors.
EU officials are seeking ways for the private sector to participate in the bailout, perhaps through a bond swap. Private sector involvement may be worth about 30 billion euros, leaving new official assistance to account for as much as 60 billion euros, one source said.
In addition, the new bailout envisages Greece itself will provide about 30 billion euros in proceeds from privatising its state assets, bringing the total size of the new package to 120 billion euros, the sources said.
Greece signed an initial 110 billion euro bailout deal with the EU and the IMF in May last year. A 12 billion euro tranche of those loans is expected to be paid to Greece in July, leaving 45 billion euros of the initial bailout still undisbursed; those loans would be disbursed over time alongside the new bailout.
