Greek debt will be paid on time

Tuesday 04 May 2010 12.37
Brian Lenihan - 'Strict conditions' on package
Brian Lenihan - 'Strict conditions' on package

The Greek government has said the first tranche of a €110bn loan from eurozone countries and the International Monetary Fund will arrive in time to honour debts of €9bn, which is due on 19 May.

‘We need €9bn, it will arrive in time,’ the official said a day after Greece unveiled a €110bn loan international rescue package to avert default on its debt.

‘Everything was done on the basis of this date,’ the source said.

The Greek socialist government is meanwhile rushing to push through parliament a new round of spending cuts, despite public anger.

Prime Minister George Papandreou has defended the measures, saying the austerity package is essential to secure the rescue package.

However, trade union leaders have said they are preparing for a general strike on Wednesday.

The Irish Government has said last night's decision by eurozone finance ministers to approve a huge financial package to rescue the Greek economy would safeguard the stability of the euro.

The unprecedented deal will see €110bn being loaned to Greece over three years, with Ireland contributing up to €1.3bn

Eurozone countries will pay €80bn, with the rest coming from the International Monetary Fund.