Brussels, 17/10/2014 (Agence Europe) - A precautionary conditioned credit line from the European Stability Mechanism (ESM) is something that will be negotiated for the Greek exit from the eurozone aid programme, said the country's prime minister in Milan on Friday 17 October, according to reports in the Greek press.
The precautionary conditioned credit line would be used to protect the country against any turbulence, he said, following several days of tension on the markets (see EUROPE 11178). If Greece decides to opt for the credit line, a formal decision would be required from the rest of the eurozone and the European Commission would then be asked to negotiate with Greece the strings to be attached to the aid. Under their legislation, some eurozone countries would be required to ratify the decision. Greek newspaper Kathimerini reports that Greece is planning to pay back the portion of the €11 billion set aside for banks that is not required to bail out the banks. Greece would in this way reduce its public debt and the money could be put aside and serve as a preventative credit line. (EL)