The European Stability Mechanism’s board of directors convened on Tuesday morning and decided to authorize the disbursement of the 2.8 billion euro trance to Greece. The full statement is as follows:
“Today’s decision to disburse €2.8 billion to Greece is a sign that the Greek people are steadily making progress in reforming their country. The government has completed key milestones in the area of pension reform, bank governance, the energy sector, and revenue collection. It has also taken further steps in making the new privatisation and investment fund operational. If the government continues to implement the reforms agreed in the ESM programme, growth of the Greek economy could accelerate next year and the government may be able to start issuing bonds again next year,” said ESM Managing Director Klaus Regling.
This €2.8 billion disbursement consists of two parts: €1.1 billion was approved for release following the full implementation of a set of 15 milestones by the Greek authorities, and is to be used for debt servicing. A further €1.7 billion can now also be disbursed after a positive assessment of the clearance of net arrears by Greece; this amount will be disbursed to a dedicated account for clearing arrears.
“I am also pleased to note that the Greek government has fulfilled its commitment to clear arrears, as this will have a positive impact on the country’s economy. I hope our good cooperation with the Greek government continues, so that the second review of the programme can be completed in a timely manner,” said Mr Regling.
After the disbursement approved today, ESM financial assistance for Greece will reach €31.7 billion, out of a total programme volume of up to €86 billion. The ESM and the EFSF together have so far disbursed €173.5 billion to Greece (including the amount approved today), making the rescue funds by far the largest creditor of Greece.