It's all but official: this summer's Greek crisis has been called off.
After an 11-hour meeting lasting into the early hours Wednesday, European officials agreed to unfreeze more rescue loans and to consider ways to lighten Greece's debt load. That means Greece stands to get 10.3 billion euros ($11.5 billion) from its bailout loan package from European governments and the International Monetary Fund.
The money means Greece can make debt payments coming due in July. There won't be fears of a disastrous default and forced exit from the euro currency, as there were before Greece sealed a similar deal in July, 2015.
The country, however, is still far from safe financially or economically, meaning its crisis could yet flare up and once again cause jitters for the global economy.
Here's a look at what's next for the country.
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Q: Is Greece out of danger of defaulting and leaving the euro?
A: For the next few months, yes. There are a few more checks to be made on Greece's reforms before the money can be transferred. But the deal seems mostly done.
For the longer term, no.
The IMF and the eurozone governments, led by Germany, remain at odds over how much austerity Greece needs to do. In particular, Germany and the European states want Greece to run a budget surplus — when not counting debt interest payments — of 3.5 percent of annual GDP. That's a huge figure. And it could stifle economic growth because it would give the government little space to spend on the economy.
The European creditors want such a surplus to make sure Greece pays off its debts. But the IMF says the figure is unrealistic and wants a lower target, more like 1.5 percent of GDP.
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Q: Was that all they disagree on?
A: No, they also disagree on how to lighten Greece's debt load.
The IMF says Greece's debt, which is currently 180 percent of GDP, is "unsustainable." It wants European creditors to agree to lower interest rates on past rescue loans they gave Greece, and to push out their repayment dates.
The Europeans agree debt relief is possible. But Wednesday's deal puts off discussion of concrete terms for debt relief until 2018.
Germany, the most influential of the governments that loaned Greece money, is reluctant to go to its parliament for approval of more breaks for Greece ahead of national elections in October 2017.
http://www.nytimes.com/aponline/2016/05/25/world/europe/ap-eu-greece-bailout-whats-next-.html
