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FACTBOX-Progress towards approving emergency loans to Greece
April 26, 2010 / 3:15 PM / 7 years ago

FACTBOX-Progress towards approving emergency loans to Greece

BRUSSELS, April 26 (Reuters) - Euro zone governments say they stand ready to provide Greece with 30 billion euros of emergency three year loans, while the International Monetary Fund may provide some 10-15 billion euros more.

But how soon Greece gets the money depends on legal procedures in each of the 15 other euro zone countries and the IMF. Greece has limited time because it needs to pay back 8.5 billion euros in maturing debt on May 19.

Below is an overview of how much donors would contribute, dependent on their shares in the capital of the European Central Bank, and the legal hurdles the loans face:

IMF - up to 15 billion euros; IMF officials have said the Europeans want IMF financing not to exceed a third of any total aid package.

When a member country seeks an IMF loan, the Fund dispatches a mission to reach an agreement with the country on an economic programme. An IMF mission began talks in Athens last week. The IMF has declined to give an end date for the talks, but has said it can move quickly if needed.

Once a programme is agreed, IMF loans need the approval of the IMF management and board.

GERMANY - 8.4 billion euros. By adopting accelerated parliamentary proceedings, Germany could approve a law to bail out Greece on Friday, May 7, according to Finance Minister Wolfgang Schaeuble.

Any legislation for Greek aid would need a simple majority in a vote by the lower house of parliament. It may also require approval from the upper house, depending on what kind of bill the government drafts.

If upper house approval is required, it could only delay the passage of the bill by calling for mediation to amend it. Were the amended bill to be rejected by the upper house again, the lower house could overrule the upper house.

The opposition Social Democrats (SPD) have threatened to hold up the fast-track process to permit further debate on the Greek aid, which most German voters are opposed to. However, the party is not opposed to aid for Greece in principle.

FRANCE - 6.3 billion euros. The package needs approval by both houses of parliament. The bill is set to be given fast-track treatment and the government hopes it will be passed into law by May 10. Some 3.9 billion euros can be mobilised in 2010. The rest would come later. President Nicolas Sarkozy’s centre-right allies say they support the bill. Opposition leftist parties have said nothing, suggesting they won’t create any problems.

ITALY - 5.5 billion euros. The contribution will be authorised by a government decree, which comes into force immediately after it is approved by the cabinet. The decree needs to be approved by both chambers of parliament within 60 days. An Italian Treasury official said last week that the government was readying the decree but gave no details on the timeframe.

SPAIN - 3.7 billion euros. Needs to be approved in parliament to be disbursed although the government has not yet provided any date for when it will be presented for approval and Deputy Prime Minister Maria Teresa Fernandez de la Vega said last week the country was ready to release the money for Greece when needed.

NETHERLANDS - 1.8 billion euros. Approval is needed from the both houses of parliament, though a majority of MPs have already said they would back the aid plan. The finance ministry says it will notify parliament the aid is needed after the EU and IMF complete their review in Greece. As soon as the next day the government will submit a supplementary budget bill to parliament with the aid request. It is expected that parliament could act on the bill in as soon as a couple of days.

PORTUGAL - 770 million euros. Finance Minister Fernando Teixeira dos Santos has said the loan for Greece would be presented to parliament for approval. No date has been set yet for when that will happen.

FINLAND - 550 million euros. The loan, part of a supplementary budget proposal, is due to be discussed by parliament in early May. There has been no indication from the majority 4-party coalition that the loan would not be approved.

SLOVENIA - 144 million euros. The aid is expected to be approved by parliament in late May or early June. The government had said all procedures needed to give aid would be finished by the end of June at the latest. The ruling coalition is expected to back the Greek aid legislation in parliament which should be sufficient even if opposition parties vote against it.

Reporting by euro zone bureaux, compilied by Jan Strupczewski; Editing by Ron Askew

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