Euro zone finance ministers are expected to decide on a new bailout for Greece in July, European Union Economic and Monetary Affairs Commissioner Olli Rehn said in a statement on Thursday.
The ministers are expected to approve the payout of 12 billion euros (about $17 million) from the original aid package to Greece on Sunday. The European Commission said on Wednesday that Greece was likely to receive the fifth tranche of the 110-billion-euro loan from the European Union and the International Monetary Fund in July.
"This two-step approach," Rehn said, "means that the funding of the Greek sovereign debt can now be ensured until September, while we take the decisions for the medium-term, beyond September, in July."
Large-scale protests against new crucial budget cuts approved by the Greek government broke out in the capital of Athens on Wednesday. The austerity measures, which international lenders have demanded in return for a second bailout, include 6-billion-euro spending cuts for 2011, a 22-billion-euro saving package for 2012-2015, and a 50-billion-euro state assets privatization program.
Prime Minister George Papandreou said he will reshuffle his cabinet on Thursday and request a vote of confidence in Parliament to implement the five-year austerity plan.
Earlier on Thursday, two lawmakers in Papandreou's ruling Socialist party resigned in protest against the prime minister's economic policies but were expected to be replaced by other party members from their constituencies.
EU top economic official says bailout decision for Greece due in July
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Euro zone finance ministers are expected to decide on a new bailout for Greece in July, European Union Economic and Monetary Affairs Commissioner Olli Rehn said in a statement on Thursday.
