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The trouble-free payout of new loans for Greece indicates greater European political confidence in the ability of the government in Athens to press ahead with budget cuts and market-opening initiatives outlined in the nation’s international aid programme. That in turn has helped lessen speculation that was rife last year about a possible Greek exit from the 17-nation single currency.
The disbursement for January is part of a €49.1 billion tranche that the euro area approved last month for Greece through March after revamping the nation’s second rescue. Policy-makers gave the Samaras government two extra years until 2016 to meet budget-cutting targets. Greece received €34.3 billion last month, including funds for banks. After the January disbursement, the country is due to get about €5.6 billion for budget obligations in two separate payments in February and March. The International Monetary Fund is contributing a separate amount to Greece of about €3 billion this quarter.