EU refuses to grant 1.2 billion euro to Greece

26 march 2015 | 10:15

Eurozone countries have found no legal basis for the allocation of funds for Greece from bank recapitalization fund. 

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The EU has refused to give 1.2 billion euro to Greece
Brussels has rejected a Greek request to provide 1.2 billion euro.

Eurozone countries found no legal basis for the allocation of funds for Athens from bank recapitalization fund.

At the same time, according to Reuters, a representative of the European Financial Stability Fund (EFSF) announced that the working group, however, would consider this issue and prepare recommendations for the next meeting of eurozone's finance ministers.

Earlier, the European Central Bank (ECB) has suspended funding for Greek banks. In this regard, the financial institutions of the country began to feel an acute shortage of funds, since under conditions of uncertainty investors massively withdrew money from their accounts. The inflow of funds dried up after the ECB stopped taking Greek government bonds as collateral for loans on February 11.

Read more: Greece threatens Germany with property arrest

On March 20, the European Commission's President Jean-Claude Juncker announced that Greece, experiencing a deep economic crisis, can expect another 2 billion euros from the EU. The money will be allocated through unused funds from the European and Structural Funds, explained the EU official. It was assumed that this money would be spent on projects to combat unemployment among young people, the poor and on strengthening small and medium businesses.

Source: Deutsche Welle

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