Greek lawmakers approved a highly unpopular package of austerity measures amid nationwide protests on Sunday, paving the way for its international creditors to release EUR 130 billion in aid to the troubled euro member.
Last week, the troika --European Union, the European Central Bank and the International Monetary Fund --demanded more measures from Greece to receive the bailout money.
A total of 199 lawmakers voted in favor, while 74 voted against. The vote comes amid one of Greece's worst riots with thousands gathering outside Parliament and hurling stones and firebombs at the police. They also set several building on fire in Athens.
The new bailout money would leave Athens with sufficient funds to repay a EUR14.5 billion bond due on March 20.
Eurogroup chairman Jean-Claude Juncker last week urged the Greek Parliament to find a further EUR325 million in savings to cover budget shortfall for 2012. The latest austerity plan included a 22 percent reduction in minimum wages, 15 percent pension cuts and 15,000 job public sector job cuts.
Greece, which has an estimated debt of EUR350 billion, has already availed a joint EU-IMF EUR110 billion- rescue loan in May 2010, out of which about EUR73 billion have been given to Athens in a number of installments.
EU Economic and Monetary Affairs Commissioner Olli Rehn said last week that the deal on private sector involvement is "practically finalized, even if it will be formally approved as part of the overall package, I trust next week."
The debt restructuring plan aims to reduce Greece's debts by around EUR 100 billion, taking it to a more "sustainable" level of 120 percent of GDP by 2020 from the current 160 percent.
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