LONDON — European officials on Thursday sought to calm fears over a possible financial collapse in Greece, saying that short-term aid to Athens was imminent, even as the euro slumped and concern heightened that debt troubles could engulf larger economies such as Spain.
Olli Rehn, the European Union’s economic commissioner, said a crucial $17 billion aid disbursement to Greece from the E.U. and the International Monetary Fund would land in Athens by early July, in time to prevent the nation from running out of cash to pay its creditors. Release of the funding, part of Greece’s $160 billion bailout approved last year, was being held up by deadlocked talks over the size and shape of a second massive bailout that the country now needs as its financial straits worsen.
Rehn said an agreement on the release of the $17 billion was set to be reached this weekend by finance ministers from the 17 nations that share the euro. The funds, he said, would no longer be linked to a broader agreement on a second bailout. He said he expected the IMF to agree to the plan.
Full Story: Europeans try to calm fears over Greek crisis – The Washington Post