Greece to receive billions of new loans after bailout approved

Greece's euro partners approved billions in new loans to the struggling country after lawmakers in Athens approved a deal for Greece's third bailout.

But the approval by the Greek parliament may come at considerable political cost to Prime Minister Alexis Tsipras.

Eurozone finance ministers approved the first 26 billion euros ($29 billion) of a vast new bailout package to help rebuild Greece’s shattered economy.

Eurogroup Chairman Jeroen Dijsselbloem said Friday, “Of course there were differences, but we have managed to solve the last issues.”

The move saves Greece from a disorderly default on its debts, which could have come as soon as next week and helps to cement its membership in Europe’s single currency.

Greek approval for the $93 billion bailout came after an all-night debate by Athens lawmakers.

Tsipras relied on support from opposition parties to gain approval for the package that includes sweeping new austerity measures — spending cuts and tax hikes — demanded by Greece's creditors.

Many parliamentarians from Tsipras' leftist Syriza party accuse the prime minister of too readily capitulating to the creditors' demands.

And Greek media reported Friday that Tsipras may now hold a vote of confidence on his government on Aug. 20, the same day Athens is due to make a $3.6 billion bond repayment to the European Central Bank.

If he loses that vote he may be forced to resign or call a fresh round of elections.

"The topic of elections in September is gaining attention once again, although at this stage further political instability is not to the benefit of Greece," said Eirini Tsekeridou, an analyst at Swiss bank Julius Baer.

Contributing: The Associated Press