The Board of Directors of the European Financial Stability Facility (EFSF) decided to reduce to zero the step-up margin accrued by Greece for the period between 1 January 2020 and 17 June 2020, as part of the medium-term debt relief measures agreed for the country in 2018. The value of the reduction amounts to 103.64 million euros.
Additionally, as part of the debt relief measures, the European Stability Mechanism (ESM), acting as an agent for the euro area member states and after their approval, will make a transfer to Greece amounting to 644.42 million euros, equivalent to the income earned on SMP/ANFA holdings.
“ In the assessment of the European institutions, confirmed by the Eurogroup in June 2020, the Greek government has taken the necessary actions to achieve its specific reform commitments. This clears the way for the release of the funds tied to those commitments. Greece, as all other EU Member States, has been adversely affected by the Covid-19 pandemic. The Greek government swiftly reacted with a decisive and effective policy response, both in containing the outbreak of the virus and in taking the necessary economic and fiscal support measures,” said ESM Managing Director and EFSF CEO Klaus Regling. He added: “ It will be crucial for Greece to maintain its reform efforts and intensify them in areas such as financial sector reforms. This is necessary to further support the economic recovery, improve the resilience of the economy and improve the country’s long-term economic potential.”