Greece to tap $18.4 billion in aid

By Aaron Smith, CNNMoney.com staff writer


NEW YORK (CNNMoney.com) -- The Greek Ministry of Economy and Finance will request its first tranche of funding Tuesday from the European Union (EU), according to a press officer at the ministry in Athens.

The initial request will be for €14.5 billion, or $18.4 billion, from the EU. The request would come from a total package of $140 billion announced earlier this month by the EU and the International Monetary Fund (IMF).

The first IMF funds of $7 billion will be provided to Greece on Wednesday, according to the press officer.

As a result, Greece will be requesting $25 billion of its credit line in the next two days. The funding will make it possible for the Greek government to redeem $10.7 billion worth of debt that will be due May 19.

In all, European officials have approved more than $1 trillion to contain the debt crisis in its weakest member nations, including Greece, Portugal and Spain.

The loans come with caveats. Greece is expected to impose austerity measures, including salary cuts for public workers, an increase in the retirement age for women in the public sector, and higher taxes on cigarettes, gambling, fuel and luxuries.

Deadly riots broke out in Athens last week after Greek officials agreed to the austerity measures. To top of page


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