Eurozone’s ESM postpones €1bn loan tranche to Greece
A report claiming Athens has not made enough progress in clearing debt arrears is being blamed for a eurozone decision to suspend a €1 billion ($1.1 billion) loan to Greece.
The board of the European Stability Mechanism (ESM) decided on Friday against disbursing the remaining sub-tranche of its loan, following the report by creditors.
On March 27, the ESM approved a fourth tranche of financial assistance to Greece amounting to €6.7 billion, including the release of €5.7 billion for debt servicing needs, arrears clearance and for the building up of a cash buffer.
According to the decision, the remaining €1 billion would have been disbursed “subject to positive reporting by the European institutions on the clearance of net arrears and a confirmation from the European institutions that the unimpeded flow of e-auctions has continued”.
Greek media report that the government must show significant progress by June 15, otherwise, the tranche will be canceled.
You may be interested
Athenians flee capital after free movement allowedmakis - May 14, 2021
Greeks were leaving en-masse from the Attica basin to nearby islands and other destinations on Friday, following the official lifting…
Movement free across GreecePanos - May 14, 2021
Greeks will be allowed to move freely throughout the country from Friday, as the Deputy Minister to the Prime Minister…
Let’s be honest, Turkey cannot join the EU: Manfred WeberPanos - May 14, 2021
“Let us be honest, Turkey cannot join the EU,” said Manfred Weber, the leader of the European Parliament’s People’s Party…