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At its additional sitting on 23 February, the Riigikogu discussed the Resolution of the Riigikogu On Approving the Draft Memorandum of Understanding between the European Commission and the Hellenic Republic on Specific Economic Policy Conditions (185 OE), presented by the Government on February 22. 

The contents and the impact of the Memorandum were explained by the Minister of Finance Jürgen Ligi. Under the European Financial Stability Facility (EFSF) Framework Agreement, financial aid is given to Member States mainly in the form of an EFSF loan. The detailed comprehensive economic policy programme that must be followed to receive the loan is agreed on between the euro zone Member States and the Member State receiving financial aid in the economic policy memorandum that serves as the basis for the loan. The draft Resolution allows the Riigikogu to approve the draft Memorandum of Understanding between the European Commission and Greece; the Memorandum is linked to the guarantee intended for eurozone Member States which is provided in clause 1 of the 29 September 2011 Resolution of the Riigikogu On Ensuring Performance of Obligations arising from the European Financial Stability Facility Framework Agreement and Amendments thereto. 

The total volume of the second loan programme for Greece is EUR 130 billion. The capital key for Estonia in guaranteeing EFSF loan obligations is 0.2748 %. The final amount of Estonia’s guarantee will be determined after the participation percent of the private sector has been determined and the capital needs of the Greek banks have been assessed. In addition to this, the part of the IMF in the total loan sum still remains to be fixed. 

The new support programme provides a large scale plan for restoring the sustainability of the Greek economy and ensuring the financial stability in Greece and consequently in the whole eurozone. At the core of the programme is the objective to decrease Greek debt to 120.5 % by the year 2020, with the involvement of the private sector as well. The debt of the Greek government sector in the end of 2011 was roughly 162 % of the GDP. 

Member of the Finance Committee Aivar Sõerd reported on the discussion that had taken place in the Committee. The Finance Committee supported the draft and moved to conclude the first reading. 

Rainer Vakra, Taavi Rõivas, Sven Sester and Rannar Vassiljev took the floor during the debate. 

The Estonian Centre Party Faction moved to reject the draft at the first reading. The result of voting: 28 votes in favour, 57 against. The motion was not supported. 

The second reading of the draft was scheduled for the second additional sitting of the Riigikogu at 9.30 p.m. of the same day. 

The first additional sitting ended at 7.30 p.m. 

The Riigikogu Press Service

 

 

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