20-05-2022 08:47 PM Jerusalem Timing

Greek Parliament Approves Tough Creditor Reforms Bill

Greek Parliament Approves Tough Creditor Reforms Bill

Greece’s parliament early on Thursday strongly approved a bill of tough reforms demanded by the country’s creditors in return for a new bailout, according to official results.

Greece referendumGreece's parliament early on Thursday strongly approved a bill of tough reforms demanded by the country's creditors in return for a new bailout, according to official results.

A final count showed 229 lawmakers voted in favor of the measures, with 64 voting against and six abstaining.

Prime Minister Alexis Tsipras, who has nearly split his party in the process, insisted he did not agree with the bulk of the deal, that demands tax hikes, a pensions overhaul and privatization pledges.

But for Greece to secure funds, the agreement must still go before the domestic parliaments of some of the other 19 members of the eurozone, with all eyes in particular on EU powerhouse Germany, which is set to vote on Friday.

Eurozone finance ministers were set to hold a conference call on Thursday to discuss the next step in finalizing what will be the debt-laden country's third bailout, worth up to 86 billion euros ($94 billion).

Under the deal, eurozone governments will contribute between 40 and 50 billion euros, the IMF will contribute another chunk and the rest will come from selling off state assets and from financial markets, a European official said.

Greek assets for privatization will be parked in a special fund worth up to 50 billion euros, with some 25 billion euros of the money earmarked to recapitalize Greece's banks.

The European Central Bank has been keeping Greek banks afloat with emergency liquidity, but it could be forced to cut off that aid if Greece misses a huge debt repayment due on Monday.