Greece Reaches Landmark $11.5 Billion Debt Deal With IMF

There's hope for Greece. The debt-laden nation has made nice with the International Monetary Fund, securing $11.5 billion in fresh loans on Wednesday.
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There's hope for Greece. The debt-laden nation has made nice with the International Monetary Fund, securing $11.5 billion in fresh loans on Wednesday. In July 2015, Greece defaulted on a $1.7 billion payment to the Washington-based fund. Wednesday's deal comes in addition to the $96 billion bailout program Greece agreed to last summer, which capped months of drama that rocked global markets. The European Central Bank is also set to give Greece $1.8 billion worth of earnings on the Greek bonds it holds, something German officials voiced concerns about. 'Most importantly, [this deal] includes the potential for some form of debt relief once the [bailout] program is completed [in 2018],' said Craig Erlam, senior market analyst at Oanda, based in London. Officials were reluctant to agree to debt relief measures for Greece right now, given upcoming elections in Germany and Spain, Erlam said. Germany has long been opposed to bailing out Greece, which has suffered from too much spending and failure to collect appropriate tax revenues from citizens. Reports suggest Greece agreed to new austerity measures, on top of the ones that were part of the bailout deal last summer. TheStreet's Scott Gamm has details from Wall Street.