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17 Nov, 2015 10:21

Athens strikes deal with creditors to unlock €12bn - minister

Athens strikes deal with creditors to unlock €12bn - minister

Greece has reached an agreement with its international lenders, unlocking some €12 billion in much-needed loans, according to Finance Minister Euclid Tsakalotos.

The money will help Greece pay off €2 billion of state debt, with the remaining €10 billion to be used for recapitalization of the national banks.

"We have reached agreement on everything, including the 48 additional measures [to secure the loan-Ed.]", Tsakalotos told reporters on Tuesday, after marathon overnight talks.

The minister added that the government would submit the agreed measures to parliament later on Tuesday and the vote would follow on Thursday.

Eurozone officials are expected to approve the agreement later on Tuesday with the final decision on unlocking the funds expected on Friday.

READ MORE: German parliament approves €86 billion Greek bailout

In July Greece accepted €86 billion in rescue loans from EU banks which saved the country from default and possibly exiting from the eurozone. The agreement came with strict conditions, including spending cuts and tax rises.

Athens intended to implement the reforms by mid-October in exchange for the €2 billion, but failed to do so due to national elections in September and disagreement on some key questions.

The main disagreement remains over issues such as the treatment of bad bank loans, the rules for mortgage foreclosures and raising enough revenue to scrap a proposed tax on private education.

Earlier this month there were strikes in the Greek capital, with protestors rallying against austerity.