BRUSSELS (Reuters) - Euro zone finance ministers agreed on Sunday to the terms of emergency loans for Greece, should the debt-stricken country be unable to finance itself on the market. Below are the key points of the agreement.
All countries using the euro and the International Monetary Fund. Euro zone member states would contribute to the loans according to their respective holdings in the European Central Bank capital. For a detailed breakdown see: (here)
The euro zone would provide two-thirds of all loans requested by Greece and the IMF would supply the remaining one-third.
30 billion euros from the euro zone in the first year. The IMF could lend Greece up to 10-to-12 times its IMF quota of $1.25 billion, which would mean $12.5 billion to $15 billion (some 11.1 billion euros). A senior Greek finance ministry official said he would expect the IMF to lend Greece at least 10 billion euros in 2010. He also said that it would make sense if the whole three-year program was 80 billion euros.
For the euro zone, variable rate loans would be made on the basis of three-month EURIBOR rates, while fixed-rate loans will be based upon the rates corresponding to Euribor swap rates for the relevant maturities.
On top of that, there will be a charge of 300 basis points. An additional 100 basis points will be charged for loans longer than three years. In conformity with IMF charges, a one-timeservice fee of maximum 50 basis points will be charged to cover operational costs.
The statement said that for a three-year loan to Greece as of April 9, the interest would be "around five percent."
The IMF prices its loans less, Economic and Monetary Affairs Commissioner Olli Rehn said.
Greece has to request the money, because it is unable to finance itself on the market. The ECB and the European Commission then assess if this is really the case. A unanimous decision of euro zone finance ministers is the final go-ahead. The ECB pays out the money while the Commission acts as a coordinator of the bilateral loans.
Reporting by Jan Strupczewski, editing by Maureen Bavdek