UPDATE 1-Greece gets 14.5 bln euro EU aid, to repay bond

* Greece receives 14.5 billion euros in EU aid

* Will repay maturing 8.5 billion euro bond on May 19

(Adds EU aid received, bond to be repaid)

ATHENS, May 18 (BestGrowthStock) – Greece received a 14.5-billion
euro ($17.9 billion) emergency loan from the European Union on
Tuesday and will use some of the money to fully repay an
8.5-billion euro bond maturing the next day, officials said.

It was Greece’s presumed inability to redeem this euro bond,
which matures on Wednesday, that prompted the EU and IMF to
intervene and eventually agree to a 110-billion euro aid package
this month. The IMF has already lent Greece 5.5 billion euros.

“The 14.5 billion euros was transferred to Greece a short
while ago, through the ECB,” said a Greek bank official close
the deal, speaking on condition of anonymity.

Greece will now use some of the funds to fully repay the
10-year bond, a government official said.

“Repayment to bondholders will proceed normally on May 19,”
the official, who declined to be named, told Reuters.

The 6 percent fixed-coupon bond was a major refunding hurdle
for Greece this year along with a 5-year, 8.2 billion euro bond
that was repaid on April 20.

According to a standard convention for Greek bonds, Greece
would not technically default on its payments as long as it paid
the principle within seven days and the interest within 30 days,
but the markets might well have viewed any delay differently.

Greece has embarked on the huge task of cutting its deficit
from nearly 14 percent of GDP to 3 percent by 2014 to meet the
conditions of the EU/IMF aid, but faces a series of large
protests against the government’s wage cuts and tax hikes.
Investment Research

(Reporting by Lefteris Papadimas and George Georgiopoulos;
Writing by Jon Hemming; Editing by Jason Webb)
($1=.8114 Euro)

UPDATE 1-Greece gets 14.5 bln euro EU aid, to repay bond