EU strikes deal on €8.5bn bailout loan for Greece

Eurozone ministers have agreed to unlock the latest tranche of Greece's bailout, ending months of uncertainty about whether Athens could meet large bond payments due in July.

The international creditors said the bailout fund will disburse €8.5 billion (US$9.5 billion) to Greece and that the payment still has to be parliamentary approved in some countries.

"It's a very constructive decision that will help Greece, also on the international market, to gradually get more credibility," Luxembourg Finance Minister Pierre Gramegna said as cited by Bloomberg. "The goal is for Greece to go back to the markets in the coming months or year."

The latest tranche will help Athens to avoid a default next month when it faces debt repayments of nearly €7.3 billion.

After two years of hesitation, the International Monetary Fund (IMF) said it was ready to...