EU prepares 25 bn euro rescue package for Greece: Report

LONDON: The European Union nations are preparing a bailout package for Greece that could exceed 25 billion euro (USD 34.4 billion), a media report has said.

"The bailout fund - which could top 25 billion euro - would be made available if crisis-stricken Greece asked for help to tackle its 300 billion euro debt pile," the Sunday Telegraph reported.

The report said Germany and France would be the main supporters to the rescue package, which would be presented before the eurozone finance ministers as early as tomorrow.

So far, Greece has not sought help from its EU partners. However, an April and May deadline to repay debt back has pushed Greece to seek financing of around 20 billion euro on the bond market, the report said.



The Mediterranean country's deficit currently stands at four-times the amount allowed under EU rules. The European Union (EU) is an economic and political union of 27 member states, located primarily in Europe.

Talks to finalise details continued over the weekend. It is understood that because EU rules prohibit "bailouts", the package has been designed as a series of loans or loan guarantees, the Sunday Telegraph said quoting sources.

Greece has promised to cut its deficit from 12.7 per cent to 8.7 per cent this year while its long-term plan is to reduce the shortfall to below 3 per cent by 2012.