EFSF approves two-month extension of Greece’s bailout programme

Following a similar the decision by the council of eurozone ministers, the board of the European Financial Stability Facility (EFSF) decided on Friday to grant Greece a two-month technical extension of its 2nd economic adjustment programme financed by the fund.

Instead of ending on 31 December 2014, the EFSF programme will now end on 28 February 2015. The decision follows a request from the Greek Finance Minister Gikas Hardouvelis.

As a result of this decision, the remaining €1.8 billion from the programme can still be disbursed to Greece until the end of February, but it depends on the successful conclusion of the current programme’s last review, the announcement said.

“The technical extension of the EFSF programme for two months gives Greece time to conclude the current review with the troika,” said EFSF CEO Klaus Regling. “The extension of the EFSF facility and bonds for two months ensures that these funds remain available for Greece. This will reassure the markets.”

“The Greek people have made enormous progress in putting their economy back on sounder footing, but there is still a need for more reform,” Regling added.