Finance ministers approve a second EU-IMF bailout for Greece, worth €130 billion ($172 billion). The deal involves a debt reduction of 53.5% — or „Haircut“ — for private holders of Greek bonds. In return, Greece must reduce its debt ratio from 160% to 120.5% by 2020. Greece and its private creditors complete the debt restructuring on March 9, the largest restructuring in history. In a statement, Jean-Claude Juncker, who chairs as Eurogroup president the finance ministers of the 17 European Union members that use the euro, said national governments had formally approved Greece`s second bailout, estimated at €130 billion ($170 billion). „All necessary national and parliamentary procedures have been completed,“ he said. The government defended the rejection of the proposal, while four opposition parties (PASOK, To Potami, KIDISO and New Democracy) declared the proposed referendum unconstitutional. They asked Parliament or the President to reject the proposed referendum. [151] Meanwhile, the Eurogroup announced that the second existing rescue agreement would technically expire on June 30, 5 days before the referendum. [146] [148] Unlike the first programme based on bilateral loans, euro area countries agreed that the second programme would be financed by the European Financial Stability Facility (EFSF), which has been fully operational since August 2010. Eurozone finance ministers and the IMF agree on a revised bailout deal for Greece, including lower interest rates on Greece`s bailout loans and a debt buyback program. The new plan allows Greece to reduce its debt ratio to 124% by 2020 instead of 120%, while pledging to reduce its debt „well below“ 110% by 2022. As part of the comprehensive agreement reached in the Eurogroup Statement of 22 June 2018, the Greek authorities committed, in accordance with the Annex to the Eurogroup Statement, to support the implementation and objectives of all key reforms adopted under the ESM, as well as to complete certain important structural reforms undertaken under the ESM within the agreed deadlines.

Greece is awaiting the final tranche of an €86 billion ($91.6 billion) bailout from the European Stability Mechanism, the eurozone`s bailout fund it needs to repay its debt in July. . . .