ATHENS—Greece's Parliament approved a new international bailout deal, which will see the crisis-hit country receive an additional €172 billion ($227 billion) in rescue loans, setting the stage for a round of harsh measures that the country's international creditors have set as a precondition for the funds.
The approval came in the early hours of Wednesday, with 213 lawmakers supporting the loan deal, and with 79 deputies voting against it. Eight didn't cast a vote.
Greece narrowly avoided default in March after sealing the loan agreement—the second in two years—with euro zone countries and the International Monetary Fund, as well as a massive debt restructuring deal with banks and other private bondholders.
In early March, Greece's euro-zone partners finally signed off on the country's second bailout program, ending a protracted and fraught negotiating process that had started in mid-2011.
Earlier this month, Greece also concluded a related €206 billion debt restructuring that the country's international creditors had demanded as a precondition for that loan.
As Greek lawmakers began debating the loan deal, thousands of demonstrators gathered in Athens's main square to protest ongoing government austerity measures linked to the fresh rescue.
The rally, called by Greece's Communist Party, was peaceful and was held without incident. Organizers played revolutionary music through loudspeakers while demonstrators waved red flags and chanted slogans urging popular resistance.
Greece is due for elections in late April or early May in a poll that looks likely to result in a hung parliament, with smaller parties such as the Communists seeing increased support as voters turn away from the two mainstream parties.
In a report, the IMF warned that Greece's loan program faces "exceptionally high" risks, and said Athens may need further debt restructuring and additional financing that Europe should cover.
Among the risks, the report raises concerns about the ability of Athens to deliver on the tough economic-overhaul policies Greece has promised.
As it is, the measures have already stoked widespread public opposition in the past several months, culminating in riots in February when Greece's parliament passed a fresh round of cutbacks.
wsj.com
The approval came in the early hours of Wednesday, with 213 lawmakers supporting the loan deal, and with 79 deputies voting against it. Eight didn't cast a vote.
Greece narrowly avoided default in March after sealing the loan agreement—the second in two years—with euro zone countries and the International Monetary Fund, as well as a massive debt restructuring deal with banks and other private bondholders.
In early March, Greece's euro-zone partners finally signed off on the country's second bailout program, ending a protracted and fraught negotiating process that had started in mid-2011.
Earlier this month, Greece also concluded a related €206 billion debt restructuring that the country's international creditors had demanded as a precondition for that loan.
As Greek lawmakers began debating the loan deal, thousands of demonstrators gathered in Athens's main square to protest ongoing government austerity measures linked to the fresh rescue.
The rally, called by Greece's Communist Party, was peaceful and was held without incident. Organizers played revolutionary music through loudspeakers while demonstrators waved red flags and chanted slogans urging popular resistance.
Greece is due for elections in late April or early May in a poll that looks likely to result in a hung parliament, with smaller parties such as the Communists seeing increased support as voters turn away from the two mainstream parties.
In a report, the IMF warned that Greece's loan program faces "exceptionally high" risks, and said Athens may need further debt restructuring and additional financing that Europe should cover.
Among the risks, the report raises concerns about the ability of Athens to deliver on the tough economic-overhaul policies Greece has promised.
As it is, the measures have already stoked widespread public opposition in the past several months, culminating in riots in February when Greece's parliament passed a fresh round of cutbacks.
wsj.com
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