ATHENS, (Reuters) – Europe moved to re-open funding to Greece’s stricken economy yesterday after the parliament in Athens approved a new bailout programme in a fractious vote that left the government without a majority. The European Central Bank increased emergency funding for Greek lenders, although capital controls will have to remain in place to avoid a run on the banks when they reopen on Monday.
European Union finance ministers also approved 7 billion euros ($7.6 billion) in bridge loans to Greece, allowing it to make a bond payment to the ECB next Monday and clear its arrears with the International Monetary Fund.
The loans will be finalised on Friday provided Germany’s parliament approves a Berlin government request to open talks on a three-year bailout programme – Greece’s third in the past five years – worth up to 86 billion euros.
