Greece clears final hurdle to get bailout funds

Greece bought itself time to deal with its crippling debt crisis Thursday after lawmakers passed the second and final austerity bill essential for the release of crucial bailout funds that will prevent the country from defaulting next month.

The European Union and International Monetary Fund had demanded Parliament pass two bills — an austerity law and a second bill detailing how it will be implemented - by June 30 before they approve a €12-billion ($17.3 billion) installment from the country's €110-billion (US$159 billion) package of rescue loans.

Without the next installment of rescue loans, Greece was to run out of money in mid-July.

Despite that overhanging threat, many Greeks were angry at yet more austerity.

A 48-hour general strike and outbreaks of violence on the streets of Athens brought much of Greece to a standstill in the run up to Wednesday's vote on €28 billion (US$40.5 billion) worth of spending cuts and tax hikes and a €50-billion (US$72 billion) sell-off of state enterprises.

Concerns of a near-term default have been eased as the money will see Greece through September. That's clearly evident in the performance of global markets in the past couple of days. Athens' main stock market closed another 1.1 per cent higher Thursday.

"Greece has bought more time," said economist Vagelis Agapitos. "This time, however, will start running out rather quickly unless Greece starts to deliver on its promises."

- AP