Eurozone considers cheap loans to governments

Eurozone governments are considering cheap loans to governments as an incentive to undertake structural reforms which pay off only in the medium-term, an EU document obtained by Reuters reveals.

According to Reuters’ report, the loans would be part of contractual arrangements, which would be legally binding contracts with economic reform targets that trigger the payout of tranches of the agreed loan.

The loans would be attractive because they would carry an interest rate lower than the one a government could get on the market, Reuters added.


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