Eurozone Clears Greece for Funds Release

Greece has met all the conditions of its first set of milestones required to disburse funds up to 12 billion euros, the European Stability Mechanism (ESM) and Eurogroup concluded on Monday (23.12).

 

The ESM authorized the release of a 2 billion euros instalment of the country’s loan programme, recognizing “the Greek government’s commitment to the programme with the implementation of an extensive list of essential reforms”. The ESM’s Managing Director Klaus Regling expressed confidence that if the programme implementation remains strong, it will enable the Greek economy to make “visible strides towards a sound recovery”. 

 

A Eurogroup statement also praised “the completion by the Greek authorities of the first set of milestones and the financial sector measures that are essential for a successful recapitalization process” – releasing up to 10 billion euros in loans set aside for the recapitalization of Greece’s four biggest banks– and welcomed the “commitment of the Greek authorities to finalise a second set of milestones by mid-December”.

 

The 2 billion euros instalment is the second of the initial loan sub-tranche of 16 billion euros approved in August 2015. The first part of this sub-tranche, 13 billion euros, was disbursed late August. The remaining one billion euros will be available for disbursement upon the completion by mid-December of a second set of ‘prior actions’, currently under negotiations.