Eurogroup Agrees Euro10BN Greek Bailout

The Eurogroup has agreed a Euro10BN bailout for Greece.

However, before people crack open the champagne there are a number of catches wrt the bailout:

1 The money will not go to the Greek people, but be used to pay interest on Greek debt (ie it goes back to the creditors).

2 In order to get the money Greece has had to pass further austerity measures.

3 There is no unconditional debt relief, as demanded by the IMF. Instead there is a vague promise to consider it later.

4 Greece will never implement the austerity measures, nor stick to the agreement.

5 The IMF caved in on its demand frop unconditional debt relief. Instead it has accepted the deal on the promise of a DSA and the possibility of debt relief being considered in the future.

In short absolutely nothing has changed, this is merely a means of ensuring that the creditors will continue to have their debts serviced.