ESM finally Oks 7.5 bln loan to Athens

The European Stability Mechanism (ESM) on Friday gave its final approval, as expected, of a 7.5-billion-euro loan tranche to Greece, with the money available almost immediately.

According to a press release, another 2.8-billion tranche will be disbursed into Greek coffers after a series of prior actions are implemented heading into the autumn, without going into details.

The total sum loaned to the Greek state under the third bailout now reaches 28.9 billion euros, whereas the figure since the beginning of the crisis has reached 170.7 billion euros.

In a brief statement, ESM head Klaus Regling said Friday’s decision is an acknowledgement that the Greek government will implement substantial reforms, which he ticked off as social security reform, establishing a new privatization fund, activating a mechanism for the resale and management non-performing loans in the secondary market and, finally, implementing an automatic spending cuts mechanism.

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