European parliaments approve Greek deal – Germany decides today

What’s not to approve? The money will go straight back to paying debts to the the ECB, the European Support Mechanism and the IMF

The parliaments of Austria, Latvia and Spain approved the third Greek bailout package on Monday.

The Eurogroup had approved the program on Friday.

The 86 billion euros will be dispensed from international creditors to Greece over a three-year period.

50 Latvian MPs voted in favor of the bailout program while 37 turned it down and 6 abstained.

In Spain, approval for the bailout was resounding, with 297 MPs voting in favour  and just 20 voting against, while 5 abstained.

Greece is set to receive 13 billion euros in the near future to pay outstanding debts and arrears. The country must pay the European Central Bank (ECB) 3.2 billion euros worth of bonds by August 20.

The German parliament is discussing the deal today and is expected to approve, albeit with some defections from Merkel’s governing coalition.  Schaeuble will be recommending a yes vote.

Where will the money go?
Mostly to pay back loans and prop up the Greek banks that were deliberately weakened by the ECB during six months of negotiations with the Syriza government.
The money will be released in several instalments to pay back the debts when they become due.
The first tranche will be €26bn – €10bn to recapitalise Greek banks and €16bn in several instalments, the first of which – €13bn – will be made by 20 August, when Greece must repay about €3.2bn to the European Central Bank (ECB).
7 bn to the ESM for the bridging loan will need to be returned immediately.
With another big payment to the IMF due in September it is estimated that about 500 million will be left over to the Greek government to pay back some of its 4 bn debts to its suppliers and contractors ‘thus helping the real economy.’