New pledges to let Greece reopen banks
ATHENS, Greece – Greece on Thursday won vital pledges of support from bailout lenders needed to keep its economy from collapsing, but officials in Athens said the painful austerity measures demanded in return were likely to force an election within months.
Hours after parliament approved the tough new cuts, the government promised to reopen banks Monday and gradually restore services – helped by higher cash support from the European Central Bank.
The ECB announced it was increasing emergency credit to Greek banks, adding another 900 million euros ($980 million) in support over one week. And eurozone lenders pledged short-term loans so Greece can cover its debts and negotiations for a new three-year bailout worth $93 billion.
The news buoyed world markets and came as a relief in Greece.
EU official praises Cyprus peace talks
NICOSIA, Cyprus – The European Commission’s top official expressed optimism Thursday that renewed peace talks in Cyprus can lead to a deal which the EU would support financially.
Urging rival leaders to grab the “unique opportunity” of reunifying the eastern Mediterranean island nation, European Commission President Jean-Claude Juncker said Europe would be “deeply involved with the financing” of a peace accord.
Cyprus was split into a breakaway Turkish Cypriot north and an internationally recognized south in 1974 when Turkey invaded after a coup by supporters of union with Greece. Cyprus joined the EU in 2004, but EU law only applies in the south, which enjoys full membership benefits.
Talks are at an early stage.
Associated Press
