June 30, 2011
The Greek parliament was set to approve detailed austerity and privatization bills on Thursday to secure emergency funds and avert imminent bankruptcy, but longer-term dangers still lurk.
The euro and global stocks rose after Wednesday's first vote to adopt a five-year austerity plan despite fierce public opposition to more pay and spending cuts, as investors expressed relief an immediate meltdown had been avoided.
Belgian Finance Minister Didier Reynders said, as a result, euro zone finance ministers were likely to agree to release a next tranche of loans to Greece at a meeting Sunday.
That 12 billion euro loan will prevent Greece defaulting in mid-July or at the latest on August 20, when it must honor a big bond redemption, and shift the focus to a second assistance package likely to be about the same size as last year's 110 billion euro bailout.