EuroZone to Lend Greece up to $95 billion in Bailout Funds
July 13, 2015
Eurozone leaders said they would give Greece up to €86 billion ($96 billion) in fresh bailout loans as long as the government manages to implement a round of austerity measures in the coming days.
• Eurozone leaders said they would give Greece up to €86 billion ($96 billion) in fresh bailout loans as long as the government manages to implement a round of austerity measures in the coming days. The rescue deal – reached after 22 hours of acrimonious negotiations between the currency union’s leaders and finance ministers – requires the Greek government’s near-total surrender to its creditors’ demands. But it gives the country a fighting chance to hold onto the euro as its currency. European stocks rallied Monday in response to the news. The Stoxxx Europe 600 rose 1.7% early in the afternoon, building on Friday’s gains. U.S. stocks also advanced after the announcement, with the Dow Jones up 195 points. By Wednesday, Athens must pass pension overhauls and sales tax increases that voters overwhelmingly rejected in a referendum just one week ago. [WSJ]
• The House plans to examine energy issues in coming week. The hearing comes two months after a major pipeline breach that spilled thousands of gallons of oil into the Pacific Ocean and onto beaches in Santa Barbara, CA. The House Energy and Commerce Committee will discuss the Pipeline and Hazardous Materials Safety Administration, which has yet to implement many of the major reforms in the law. Later in the week, the full House is likely to vote on Rep. David Valadao’s (R-CA) bill aimed at helping the drought in the West by reworking how federal agencies direct water resources. The bill has the support of all CA Republicans in the House and the chamber could vote on it as early as Wednesday. The Senate Energy and Natural Resources Committee is also hosting a hearing Tuesday on island-based energy systems, including those in Hawaii, Alaska, and U.S. territories. [The Hill]
Economic Indicators & News
• The Treasury budget is expected to show a $51.0 billion surplus in June. This figure is down from an unusually large $70.5 billion surplus in June last year. Otherwise, the Treasury’s balance sheet has been improving, running 16% below the prior year for the first eight months of this fiscal year. [Bloomberg]