EU Approves €7.16 Billion Bridge Loan to Greece

The 28 member states of the European Union on Friday approved a short-term emergency loan of 7.16 billion euros to Greece allowing the country to meet a huge payment to the European Central Bank (ECB) and repay the International Monetary Fund (IMF), press reports said.

Greece must pay the ECB a huge debt payment of 4.2 billion euros as early as Monday, and is in arrears to the IMF.

According to a statement by the EU, the loan will have a maximum maturity of three months and will be disbursed in as many as two installments.

“The money will allow Greece to clear its arrears with the International Monetary Fund and the Bank of Greece and to repay the European Central Bank”, the statement read.

Negotiations between Greece and its international creditors continue on a three-year bailout of as much as 86 billion euros.

Speaking to reporters in Brussels, EU Commission vice president for euro policy, Valdis Dombrovskis, said he hoped that a three-year bailout program could be agreed with Greece within a few weeks.