Merkel Urges Deal Be Reached for Second Greek Bailout

German Chancellor Angela Merkel has warned that an agreement with Greek bondholders must be reached shortly to enable Greece to receive a vital second bailout.

Mrs Merkel told a new conference:

“The second Greek aid package, including this [debt] restructuring, must be in place quickly. Otherwise it won’t be possible to pay out the next tranche for Greece.”

The debt recovery plan in place for Greece requires a second bailout from the Eurozone and the International Monetary Fund to enable Greece to avoid defaulting on its debts and avoid the potential of exclusion from the EU.

The rescue, worth 130bn euros (£107bn), would include a voluntary restructuring of Greek debt – meaning bondholders would have to write off 50% of the Greek bonds’ value.