Euro zone finance ministers have expressed support for the option of granting Greece a precautionary credit line as back-up financing once the country exits its euro zone bailout at the end of this year.
"There is strong support for a precautionary credit line in the form of an existing ESM tool called the ECCL -- Enhanced Conditions Credit Line -- and that is the path we will now further pursue and work on the conditions that will go with that,” announced the Eurozone chairman Jeroen Dijsselbloem.
"There is also a broad understanding the IMF needs to continue being involved and a further discussion will have to take place on the exact form of this involvement," Dijsselbloem said after a meeting ofEurozone finance ministers.
The ministers also approved the release of a 350-million-euro bailout tranche for Cyprus which had been put on hold for about two months.
The ministers endorsed a working document which said Cyprus has met the remaining two conditions for the release of the sixth tranche of a 10-billion-euro bailout agreed in March, 2013.
These related to the enactment of a law on foreclosures and the abrogation of framework legislation which the Eurogroup considered to be an impediment to the repossession of mortgaged properties by the banks.
Cyprus's Finance Minister Haris Georgiades said that the Cypriot economy is on the right track after two years of austerity and reforms but added that the remaining part of the adjustment program will be diligently applied throughout its entire duration.
Germany, Europe's biggesteconomy, should increase its public investment to help boost the rate of economic growth,also said Jeroen Dijsselbloem, adding to calls on a reluctant Berlin to act.
"There are a few countries that have the fiscal space to increase their public investments at the moment. One country, also the largesteconomy, has that possibility and I hope that they will," Dijsselbloem told the Eurogroup.
http://www.neurope.eu/article/cautious-eurozone-offers-greece-precautionary-credit-line%E2%80%9D