FX.co ★ The European Union Sounded the Conditions of Giving Greece Another Tranche

The finance ministers of Eurozone countries submitted the conditions of allocating 12 billion Euro for Greece within the economic aid program, - Associated Press reported.
The fifth tranche will be lent to Greece “till the middle of July”, as it was decided by the Eurozone finance ministers at the meeting, if till the end of June the Parliament of this country approves the budget spending reduction by 28 billion Euro and the economic reforms plan accepted earlier by the Government.
“We will wait for polls results”, - as the Prime Minister of Luxembourg Jean-Claude Juncker announced, the spokesman at the Eurozone meeting. He signaled that until the Greek Parliament supports the anti-crisis measures the country may rely on the second phase of financial backup which is expected to involve over 110 billion Euro. Earlier the European Union and the IMF allocated 110 billion Euro to Greece, however, it turned out to be not enough for the crisis bailout.
The meeting of FinMin heads took place in Luxembourg on June 19 night. The meeting was lasting about 7 hours. The decision to approve another tranche allocation for Greece was declared by Agence France-Presse just prior to the Asian session opening. AP denotes that in follow-up of the meeting in Luxembourg there was just sounded a readiness to provide help to Greece, no any documents were signed.
Greece with its debt coming to 350 billion Euro is on the edge of default now. The international rating agencies Moody's and Standard & Poor's downgraded the Greek rating in June by three levels with a “negative” forecast. Amid this, Standard & Poor's Agency gave “ССС” value for the Greek rating – the lowest one in the world.
On June 17 the Prime Minister of Greece Georgios Papandreou implemented some corrections in the Government, in particular, appointing a new finance minister. On Tuesday, June 21, the issue of confidence vote will be put to a vote for the new Ministers cabinet at the Greek Parliament, BBC says.
The situation in Greece is expected to become one of the key questions at the European Union Summit scheduled for June 23-24.