ESM completes disbursement of 5.7 billion euro sub-tranche to Greece

The European Stability Mechanism (ESM) on Wednesday completed the disbursement of a 5.7-billion-euro sub-tranche to Greece under the fourth loan tranche of the Greek programme of 6.7 billion euros, according to an ESM post on Twitter.

The disbursement was approved during a meeting of the ESM board of directors on Tuesday and brings the total sum disbursed to Greece to 45.9 billion euros.

According to an ESM announcement, the decision follows the Greek government’s completion of all prior actions and the subsequent approval of the Supplemental Memorandum of Understanding by the ESM Board of Governors.

“The tranche will be used for debt service, domestic arrears clearance and for establishing a cash buffer. The Board also approved an amendment to the Financial Assistance Facility Agreement (FFA) between the ESM and Greece.

“A further disbursement for arrears clearance of 1 billion euros may be carried out after 1 May 2018. It is dependent on Greece making progress in reducing its stock of arrears and improving the effectiveness of the e-auction system. This subsequent disbursement is subject to a further decision by the ESM Board of Directors,” the ESM announcement said.