To prevent Greece’s default
After 13 hours of negotiations, the finance ministers of European countries on February 20 came to terms on providing urgent financial assistance to Greece.
The European countries will provide 130 billion Euros in assistance to Greece in order to prevent the country from having a default. The Greek authorities have declared that March 20 is the deadline for paying the state bonds and that is the day when the country will declare a default, reports the BBC.
Greece is obliged to minimize the state debt by 120.5% of the GDP by 2020.
As a result of a downfall for the past 5 years, Greece's state debt is 160% of the GDP.
The agreement on saving Greece from bankruptcy comes after a meeting held with the participation of the head of the group of finance ministers of the European zone, Prime Minister of Luxembourg Jean-Claude Yunker. According to him, the group's agreement will allow the reduction of Greece's debt and will provide the opportunity to register stability in the European zone-member country.
