World Business

Eurozone finance ministers to meet on Greek rescue

(Xinhua)
Updated: 2010-05-01 11:22

BRUSSELS: Finance ministers of eurozone countries will meet on Sunday to wrap up negotiations on a multi- billion-euro rescue package for debt-hit Greece, the European Union (EU) said on Friday.

The "extraordinary meeting" of eurozone finance ministers, or the Eurogroup, was convened by Luxembourg Prime Minister Jean- Claude Juncker, who also chairs the Eurogroup, according to a press release.

The meeting would be followed by a joint press conference with Juncker and Olli Rehn, EU Commissioner for Economic and Monetary Affairs, the EU said, without giving further details.

A joint team of experts from the EU and the International Monetary Fund (IMF) has been negotiating with the Greek government over the terms of the aid package for Greece since last week.

Greek government spokesman George Petalotis said Thursday that the negotiations could be concluded this weekend.

It was widely expected that the aid package would be worth 120 billion euros ($159.8 billion) over three years, instead of up to 45 billion euros previously pledged for the first year.

Eurozone finance ministers agreed a detailed aid package for Greece earlier this month, under which eurozone countries would provide loans to Greece on bilateral basis, with a total amount of 30 billion euros for the first year, while the IMF was expected to release further 10 to 15 billion euros.

But Athens would have to take tougher austerity measures in exchange for the aid.

It was reported that the Greek government may accept a further 10-percent cut in salaries and allowances of civil servants and layoffs of public sector workers in agencies that will be closed.

Meanwhile, it was requested to make cutbacks on salaries of private sector employees that include bonuses for Christmas, Easter and summer holidays. Greece may also have to raise its value added tax to 23 percent.

The wrap-up of negotiations would pave way for a summit of eurozone leaders scheduled on May 10, at which the joint Greek rescue package is to be activated.

Greece is facing a looming deadline to pay back 8.5 billion euros of government bonds maturing by May 19.