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EFSF OK's 7.2B Euros For Greek Banks

EFSFGreece’s beleaguered banks, brought into difficulty when a previous government imposed 74 percent losses on investors and bond holders to write down the country’s staggering debt without paying them back in full, will be getting a 7.2 billion euro ($9.33 billion) injection from the European Financial Stability Facility (EFSF) as part of a 50-billion-euro ($64.9 billion) recapitalization of its banking sector.
“The funds transferred to Greece should help create a healthy and functioning financial sector, which is a precondition for the recovery of the Greek real economy,” said EFSF chief Klaus Regling.
The money was transferred via a cashless operation in two separate series: 3.6 billion euros ($4.67 billion) in 11-year Floating Rating Notes (FRN) and 3.6 billion euros in 12-year FRN, the EFSF said.
Greece has now received a total of 48.2 billion euros ($62.63 billion) in EFSF bonds out of the 50 billion euros committed for the recapitalization of its banking sector. The EFSF’s total commitment for financial assistance to Greece is 144.6 billion euros ($187.89 billion,) out of which 127.2 billion euros ($165.28 billion) has already been disbursed.
While the banks are being rescued, the government has left Greeks buried under pay cuts, tax hikes and slashed pensions to fend on their own as many are being forced to pay back bank loans, mortgages and credit cards in full.

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