Updated | Bailout deal requires determination of Greek government - Scicluna

Eurozone finance ministers have agreed on a third bailout deal for Greece, a day after Athens backed the plan.

Describing the bailout conditions it as a "comprehensive and ambitious reform package", Eurogroup chairman Jeroen Dijsselbloem said that “all the intense work of the past week has paid off.

"If implemented with determination, the deal will allow the Greek economy to return to growth,” he said. "Of course there were differences, but we have managed to solve the last issues."

European Commission President Jean-Claude Juncker said that the deal has sent a message “loud and clear that Greece is and will irreversibly remain a member of the Eurozone”.

"The past six months have been difficult. They have tested the patience of policy-makers and they have tested the patience of our citizens even more,” Juncker said. "Together, we have looked into the abyss. But today, I am glad to say that all sides have respected their commitments."

The agreement, Greece’s third bailout in five years, demands tax rises and further tough spending cuts in return for fresh loans of up to €86 billion that will be made available to the country over the next three years.

The first tranche will be of €26bn - €10bn to recapitalise Greek banks and €16bn in several instalments, the first of which - €13bn - will be made by 20 August, the deadline by which Greece must repay a massive €3.2bn loan to the European Central Bank.

Greek Finance Minister Euclid Tsakalotos praised the deal as one that "takes Greece forward in the sense that the financial system should be much more stable from now onwards.

“There is a promise of recapitalisation of the banks, without any of the depositors having to bail in or anything to worry about,” he said.

There will now be a series of votes in national European parliaments to back the bailout deal.

However, Greek Prime Minister Alexis Tsipras is facing rebellion within his left-wing Syriza party, with more than 40 Syriza MPs voting against the bailout in parliament on Friday. Greek reports suggest that he will seek a vote of confidence in parliament next week.

‘Agreement requires determination of Greek government’ - Scicluna

Maltese finance minister Edward Scicluna said that the agreement depends on the determination of the Greek government to implement the reform measures, as well as harmonisation between the European Stability Mechanism and the IMF.

He said he was satisfied that the Eurogroup was in agreement that nominal haircuts on official debt would not be undertaken. 

Scicluna praised the deal for having managed to bring all stakeholders on board.

“Eagerness to reach a solution was not enough,” Scicluna said. “We had to ensure that everybody was on board, including the International Monetary Fund (IMF), so that together we agree on the way forward. That will ensure the sustainability of this whole package.”