Greek Lawmakers Approve Controversial Bailout Provision

[HuffingtonPost]

ATHENS, April 28 (Reuters) - Greek lawmakers on Sunday  approved a reform law to unlock about 8.8 billion euros ($8.9  billion) of rescue loans from the European Union and the  International Monetary Fund.                

The law, which was a condition for further aid instalments,  passed easily with the solid backing of the three parties  comprising Greece's ruling coalition, by 168 to 123 votes.                

Following parliament's approval, senior euro zone officials  will meet on Monday to approve overdue payment of 2.8 billion  euros ($3.65 billion) in rescue loans, finance minister Yannis  Stournaras said.                

Euro zone finance ministers will then meet on May 13 to  release a further 6 billion euro instalment, he added.                

Greece needs that money to pay wages, pensions and bonds   held by the European Central Bank that mature on May 20.                

The law implements an agreement Athens struck with EU/IMF  inspectors earlier this month, which allowed them to state that  the country was on track to meet its bailout  targets.                

The legislation makes it easier to fire government employees  for disciplinary reasons, extends an unpopular property tax and  opens up professions such as accountants and bakers.                

Measures to cut Greece's budget deficit and make its economy  competitive are a condition of its 240 billion euro bailout.  Athens has already obtained about 200 billion euros of EU/IMF  rescue loans since mid-2010.                

Austerity policies imposed on Athens as part of the deal  have saved it from a chaotic bankruptcy and exit from the euro,  at the price of causing its deepest recession in decades.                

The economy is expected to have shrunk by almost a quarter  in 2008-2013. Unemployment has soared to a record of about 27  percent. Greeks' disposable income has fallen by about a third  over the last four years.                

Stournaras told lawmakers to hold firm, saying Athens has  covered most of the distance to fix its finances. "Now is not  the time to give up," said Stournaras, a technocrat appointed by  conservative Prime Minister Antonis Samaras.                

Via: HuffingtonPost