The Lithuanian government on Monday approved a deal on a three-year 86-billion-euro bailout for Greece from the European Stability Mechanism (ESM) and the disbursement of the first tranche of 26 billion euros.
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The approval was issued, given that Athens had met the preconditions for the bailout, committed to implementing far-reaching reforms in the national tax and pension system, labour market as well as in the areas of competitiveness and public administration and agreed a specific reform plan with creditor institutions, i.e., the European Commission (EC), the European Central Bank (ECB) and the International Monetary Fund (IMF), the government said in a press release.

Finance Minister Rimantas Šadžius said after the meeting that the decisions made by Greece on reforms showed that the country was ready to adhere to long-term policy.

He added, however, that the European Union and the euro area needed to see guarantees in order for Athens to get the full amount of bailout money.

“It’s difficult to tell anything about political developments in Greece in the future, in particular as there are talks about early elections. On the other hand, the results of Friday’s vote, which approved more than 50 of predefined tasks, show that a large part of political elite in Greece, and not just the ruling majority, the government or its part, understands that there is no other way. It’s a certain guarantee that the measures taken by Greek authorities will have a long-term effect,” Šadžius told reporters.

However, creditors would check Greece’s compliance with commitments each time before transferring money, he added.

On August 19, Šadžius will present Lithuania’s position at the meetings of ESM Board of Governors and the Board of Directors.

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