Will Greece benefit from Bailout?

Greece: The European Union (EU), the International Monetary Fund (IMF) and European Central Bank's financial rescue plan for Greece might become a very convenient, fruitful move for the Eurozone.

While lenders' profits will skyrocket via the interest rates on the 110bn Euro loan, Greece, in return, must implement a tight austerity program involving public debt and fiscal deficit downsizing. The "rescue plan" calls to pay back at the exchange rate set by the lenders, which will get some five percent yield.

If the interest rate exceeds five percent at the time of payment, the lenders may force Greece to accept the same rate while the remaining EC members will compensate the net loss through discounts on their own revenues in the operation.

The plan also calls for quarterly freeze of bilateral loans to Greece if it fails to honor the fiscal and structural readjustment package arranged with the EC, the European Central Bank and IMF to lower the current 13.6 percent deficit to three percent in 2014.

The EC executive is to brief the Eurozone quarterly on Greece's performance. The latter will influence on serving the loans which may be blocked, by consensus, if Greece fails to meet its commitments. The emergency program will fall harder on public sector wage-earners and retirees, as salaries and social benefits will shrink, hence the announced protest for Wednesday. Athens, Prensa Latina