Greece will receive €2.8bn from Euro-zone creditors by the end of October, after an agreement on the latest instalment of its billion-euro bailout. Euro-zone finance ministers plan to release €1.1bn , after Athens complied with 15 reforms. Ministers are endorsing a further €1.7bn. The €1.1bn to pay interest on loans and the €1.7bn will go towards repayments to creditors.
The agreement is welcomed by the Greek government, after managing to acquire its third bailout, worth €86bn.
Effects of Recession
Seven years into its worst slump in post-war history. The devastating effects of the six-year recession are still having a huge impact on the economy. Unemployment remains the highest in Europe: 1.12 million people, 23% of the workforce, cannot find a job. Although, young people are far more likely to be out of work, unemployment is rising for the aged. Younger employees are proving more successful than their older counterparts.
Also faced with the dilemma of the migrant and refugee crisis, with more than 60,000 people stranded in Greece due to border closures of neighbouring countries.
Forecast of economic growth
After being on the verge of a financial meltdown, Athens is under pressure to comply with its creditors bailout terms. The reforms, include very precise changes to pensions, energy markets and the running of Greece’s central bank and tax-collection agency. The EU insist the Greek economy is improving and have ensured short-term measures to ease the burden of repayments. Economists predict that the Greek economy will experience growth during the second half of 2016. The future remains uncertain for Greece yet they remain optimistic about their future.