Europe

Home page

Europe

France confirms possible 6.3 bln euro Greek aid

22 April 2010 03:37 (UTC +04:00)

Baku â€“ APA. France has pledged 6.3 billion euros ($8.47 billion) aid for debt-stricken Greece should Greece ask for European Union aid, Economy Minister Christine Lagarde said on Wednesday, APA reports quoting â€œâ€Reuters.
The 6.3 billion euros figure is part of the 30 billion euros of eurozone emergency aid earmarked for Greece. Lagarde added that out of the 6.3 billion euros, 3.9 billion euros could be mobilised during the 2010 French fiscal year.
"The aid will take the framework of bilateral loans," Lagarde told reporters. She added that the French aid for Greece would have a 5 percent interest charge at three-year maturity.
The French government will set up a parliamentary bill for its financial aid for Greece, and Lagarde said the text of this bill could be used for other countries within the eurozone.
Greece has pledged to cut its public deficit by almost a third to 8.7 percent of gross domestic product this year, but is being hamstrung by rising debt servicing costs. The government is also wary of sparking public unrest after a string of riots and strikes since last year. ($1=.7439 Euro)