The Board of Directors of the European Stability Mechanism (ESM) today authorised the disbursement of 2.8 billion euros to Greece, which is the remaining amount of the second tranche of ESM financial assistance.
“Today’s decision to disburse 2.8 billion euros to Greece is a sign that the Greek people are steadily making progress in reforming their country. The government has completed key milestones in the area of pension reform, bank governance, the energy sector, and revenue collection. It has also taken further steps in making the new privatisation and investment fund operational. If the government continues to implement the reforms agreed in the ESM programme, growth of the Greek economy could accelerate next year and the government may be able to start issuing bonds again next year,” said ESM Managing Director Klaus Regling.
This 2.8 billion euro disbursement consists of two parts: 1.1 billion euro was approved for release following the full implementation of a set of 15 milestones by the Greek authorities, and is to be used for debt servicing. A further 1.7 billion euro can now also be disbursed after a positive assessment of the clearance of net arrears by Greece; this amount will be disbursed to a dedicated account for clearing arrears.
“I am also pleased to note that the Greek government has fulfilled its commitment to clear arrears, as this will have a positive impact on the country’s economy. I hope our good cooperation with the Greek government continues, so that the second review of the programme can be completed in a timely manner,” said Regling.
After the disbursement approved today, ESM financial assistance for Greece will reach 31.7 billion euros, out of a total programme volume of up to 86 billion euros. The ESM and the EFSF together have so far disbursed 173.5 billion euros to Greece (including the amount approved today), making the rescue funds by far the largest creditor of Greece.