Prior actions must precede disbursement of loans to Greece

3 November 2015
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Dutch Finance Minister and Eurogroup President Jeroen Djisselbloem on Tuesday repeated the Netherlands’ position on the disbursement of loans to Greece in a briefing letter to Dutch lawmakers, saying that the release of funds will only take place if the terms of the loan agreement are fulfilled.

He said the upcoming Eurogroup meeting next Mnday will discuss the current situation and the progress in implementing the prior actions envisaged by the Greek programme.

Djisselbloem said that two sub-tranches of 2.0 and 1.0 billion euros from the first installment had yet to be disbursed and that their disbursement would depend on the implementation of two groups of prior actions. He noted that Greece had passed legislation for the first group, linked to the disbursement of the first 2.0 billion, while talks were currently underway between Greek authorities and representatives of the institutions on implementing the remaining prior actions in the first group.

He said that the Eurogroup would also be briefed on the results of stress tests on Greek banks carried out by Asset Quality Review and that, once the size of the capital shortfall had been calculated, the Greek banks would first have to seek capital themselves.

If the deficit could not be fully covered through private capital, money for recapitalisation would be made available from the European Stability Mechanism (ESM) up to the sum of 25 billion euros, he added.

Djisselbloem noted that 10 billion euros of this sum was available in a separate ESM account and the remaining 15 billion euros could only be accessed if the prior actions agreed in the Memorandum were carried out.

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