Europe News

Greece secures bailout: What next?

After 17 hours of tough negotiation, euro zone leaders on Monday agreed a deal that could pace the way for a third Greek bailout. But it's far from a done deal.

Here's a timeline of key dates as creditors prepare to dole out up to 86 billion euros ($95.2 billion) as part of a reform-for-aid package:

What's next for Greece?
What's next for Greece?

Monday, July 13

The Eurogroup of euro zone finance ministers discussed bridge financing options for Greece that will help bolster its finances in the short-term.

Wednesday, July 15

Greek parliament will have to vote on both the bailout package and measures the government must implement to receive receiving emergency funding. These include: boosting tax revenues from sale taxes, wide-ranging pension reforms and spending cuts.

Meanwhile, euro zone finance ministers are expected to hold a call regarding their next move. Members states will then start to hold their own votes on the bailout, with Germany expected to vote on Greek aid Friday.

This will give creditors a formal mandate to launch bailout negotiations.

Thursday, July 16

The European Central Bank (ECB) will hold its regular policy meeting, with focus likely to be on its Emergency Liquidity Assistance (ELA), which is currently keeping Greek banks afloat.

Frederik Ducrozet, an euro zone economist with Credit Agricole, said one option would be for the ECB to approve gradual, step-by-step increases of ELA, conditional on the Greek government implementing reforms.

Monday, July 20

A crucial day for Greece, as a 3.5 billion euro (£3.8 billion) payment is due to the ECB. Euro zone leaders say the country needs a total of 7 billion euros by this date to cover "urgent financing needs."

Greece must submit proposals outlining plans to modernize and "significantly strengthen" the country's administration, and will formally request technical assistance from its creditors and euro zone member states by July 20.

Wednesday, July 22

By now, the government must have started to overhaul the country's justice system, implementing new procedures that will accelerate the judicial process and ultimately reduce costs.

It must also adopt the Bank Recovery and Resolution Directive; the "rulebook" used by all EU member states that outlines how countries must deal with failing banks.

August 2015

The country is likely to need an additional 5 billion euros ($5.5 billion) in "urgent financing needs" by mid-August.

Autumn 2015

Supervisors from the ECB will conduct a comprehensive assessment of the Greek bailout program after the summer, as it considers Greek bank funding.

October 2015

Its creditors require Greece to have carried out its "ambitious" pension reforms by the end of this month.

March 2016

The International Monetary Fund's (IMF) involvement in Greece's financial aid is due to end, and the country will have to apply for further support from the fund after this date.