Greece Agrees with The ‘Troika’ Cutting Additional 325 million for the Second Rescue

A worker cleans the facade of the Bank of Greece in Athens

Greece and its international private creditors have agreed to cut within the severe austerity plan, the 325 million extra euro that were one of the latest requirements for receiving the second bailout of 130,000 million euros, after the repeated European postponements to that credit, the latest on happened last Wednesday at a video conference of the Eurogroup.

“One hundred million will come from a cut in the expenses of Ministry of Defence and some 90 million euro cut will come from the public sector wages ahead of schedule,” said a government source to Reuters.

The remaining 135 million euro will come from spending cuts of three ministries: Interior, Health and Labour, says another source of Greek Executive, which suggests the possibility that adjustments by the Ministry of Labour may be related to pensions cuts.

Several European partners doubt the result of general elections scheduled for April and whether a new government will remain committed to the reforms required by the troika (European Commission, IMF and European Central Bank). (LO)