Hugo Dixon estimates that the new loans to Greece exceed the present value of repayments by roughly 40 billion Euros. That is, half of the new loans are transfers.
In the FT, Duncan Robinson and Christian Oliver report about Eurozone finance ministers’ approval of the third bailout for Greece, amounting to 86 billion Euros.
Contrary to Germany’s recent demands, the approval came in spite of the fact that the IMF has not committed to participate in the new program. In fact, the IMF has committed not to participate unless Greece’s debt burden is further reduced. Finance ministers effectively promised such further cuts in the future.
The deal falls short of what the German government had hoped to secure (see also this previous blog post).