European Union (EU) has approved a short-term loan of 7.16 billion euros to Greece after it was backed by the 28 member states. This loan will allow Greece to pay its debt to European Central Bank (ECB) and the International Monetary Fund (IMF) till new bailout plan is ratified. The loan will be given through the European Financial Stabilisation Mechanism (EFSM) which is a rescue fund set up during the first time bailout of Greece in 2010. But presently it covers the whole of the 28 EU member nations and not just the 19 eurozone members. This loan fund will be officially for three months, but looking at present debt crisis of Greece it can be sustained until 20 August 2015.
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