Eurogroup approves disbursement of 6.7 bln euros for Greece

The Eurogroup gave the green light on Monday for the disbursement of the fourth tranche of the European Stability Mechanism (ESM) program for Greece, totaling 6.7 billion euros, following a meeting of the Eurozone’s finance ministers in Brussels.

The Eurogroup said the funding will be paid out in two tranches, the first of which (5.7 bln euros) will be disbursed on February to cover Greece’s debt servicing needs, clear State arrears and support the build-up of the country’s liquidity buffer.

“Following the full implementation of the prior actions and subject to the completion of national procedures, the ESM governing bodies are expected to endorse the supplemental MoU and approve the disbursement of the fourth tranche of the ESM program,” it said in a press release.

“The fourth tranche under the ESM program amounting to 6.7 billion euros will be disbursed to Greece in two disbursements, starting with a first disbursement in February of 5.7 billion euros to cover debt servicing needs, to allow the further clearance of arrears and to support the build-up of the cash buffer of the Greek State, in order to support Greece’s return to the market. The subsequent disbursement for arrears clearance may be approved by the EWG in Spring, subject to a positive reporting by the European Institutions on the clearance of net arrears using also own resources and a confirmation from the European institutions that the unimpeded flow of e-auctions has continued,” it added.