ESM: 644.42 million euros disbursed to Greece

ESM: 644.42 million euros disbursed to Greece

The disbursement of 644.42 million euro to Greece was announced by the European Stability Mechanism (ESM).

According to the ESM, which is acting as a representative of eurozone member-states, it has transferred the funds which constitute the first installment of profits made on Greek bonds (SMP/ANFA).

To remind, yesterday, debt relief measures were approved by the EFSF Board of Directors. As noted in a relevant announcement, it was decided to return 103 million euros to Greece, which the country had paid between 1 January and 17 June 2018, to “accelerate” the interest rate on loans it received.

At the same time, it was decided that for the period between June 17, 2018 and June 17, 2019, the acceleration of the margin which would normally apply to these EFSF loans would drop from 2% to 0%. This will save the country 226 million euros. The total benefit from these two moves amounts to 329 million euros.

At the same time, ESM, acting as an agent of eurozone member-states, will transfer the amount from the SMP / ANFA earnings, which correspond to 644.42 million euros. The decision comes after the EWG gave the go-ahead on 26 April.

“Following the end of the ESM program, Greece undertook to continue to implement all the key reforms adopted under the program. Today’s EFSF’s decision not to impose interest rate increases shows that the Greek government is meeting its reform commitments”, Klaus Regling said.

“This is of particular importance to EFSF / ESM as we have spent over 200 billion euros on loans to Greece. Continuing on the reform path will expand potential growth, strengthen the country’s economy, and also make it easier to repay loans, “the head of the Fund said.

“Transferring revenue from SMP / ANFA is a concession, not a loan. Along with the return from the “acceleration” on the interest rate, this package amounts to almost 1 billion euros for Greece.”/ibna