Greece Bailout Approval Is ‘Key Milestone,' But Debt Saga Isn't Over

Greek officials approved a $96 billion bailout program, dodging default of its payment due next week to the European Central Bank, but its debt woes are far from over. ‘This bailout is a key milestone as it unlocks a tranche worth $23 billion that Greece can tap into,’ said Simon Smith, chief economist at London-based FxPro. The International Monetary Fund calls the development, ‘a very important step forward’ and said ‘it puts in place far-reaching policies to restore fiscal sustainability, financial sector stability, and sustainable growth.’ Though reports suggest Greece’s debt will reach over 200 percent of its gross domestic product next year, according to European Union analysis. For context, during the first quarter of 2015, the debt-to-gdp ratio of the eurozone region stood at 92.9 percent, according to Eurostat. ‘I think debt reprofiling, rather than restructuring will be back on the table for Greece in October,’ Smith said. TheStreet's Scott Gamm reports from New York.