Dijsselbloem: 50bn Greek assets to recapitalize banks! (vids)

European Council chief Donald Tusk announced a unanimous agreement for Greece at a press conference with European Commission President Jean-Claude Juncker and Eurogroup Chief Jeroen Dijsselbloemm who announced details of the agreement.

“There is no Grexit,” said Juncker.

Eurogroup head Jeroen Dijsselbloem said trust was just one of the issues in “putting in an extra effort on all sides to get Greece back on track.”

A report on open issues were brought to the European Summit and government leaders reached agreements on those issues. “The Greek Parliament will very quickly legislate a number of issues and we will work to bring back trust,” he said. He added that the Greek proposals on labor markets, product markets and other reforms need to be strengthened further.

Dijsselbloem told the press conference that €50bn of Greek assets will be transferred to a new fund that will contribute the recapitalization of Greek banks, but this will be based in Athens, not Luxembourg, as originally planned.

“A fund will be set up where assets will be transferred to monetize assets, either by privatizing or by running the assets and trying to make money from those. That money will be used to deal with debt or reduced debt and the repayment for the recapitalization of banks,” he said, ensuring that banks’ needs would be met.

In response to questions, he announced that 50bn-euros worth of Greek assets would be transferred to a new fund that would be held in Athens, not Luxembourg, as initially demanded. This fund would contribute to recapitalize Greek banks.

Accused of launching a coup against Greece – a charge mostly aimed at Wolfgang Schauble — Juncker said: “I said before the referendum that the situation would be worse after the referendum.”