The European Union formally approved a short-term loan of 7.16 billion euros to Greece on Friday, while offering guarantees to non-euro nations that their taxpayers would not be at risk, the EU Commissioner for the euro said on Friday.

"We have an agreement on bridge financing.... This agreement is backed by the 28 member states," Valdis Dombrovskis told reporters, adding that the bridge loan would allow Greece to meet a huge payment to the European Central Bank on Monday.