ESM announces disbursement of 7.7 bln euros to Greece

ESM announces disbursement of 7.7 bln euros to Greece

The European Stability Mechanism (ESM) on Monday announced the disbursement of 7.7 billion euros to Greece via a post on Twitter.

“#ESM executed 1st disbursement of ?7.7 bn under the 3rd tranche, money arrived in #Greece,” the tweet said, with a link to a press release dated July 7.

According to the press release, the 7.7 billion is a first disbursement of the third tranche of ESM financial assistance to Greece, amounting to 8.5 billion euros. The bulk of the disbursement (6.9 billion euros) will be used for servicing Greece’s debt and the remainder on arrears clearance.

The full press release is given below:

“The Board of Directors of the European Stability Mechanism (ESM) today approved the third tranche of 8.5 billion euros of ESM financial assistance to Greece. This follows the approval of the Supplemental Memorandum of Understanding by the ESM Board of Governors and the Greek government’s completion of all prior actions last Wednesday.

The first disbursement of this tranche will amount to 7.7 billion euros and is expected to be made by the ESM on Monday. Out of this amount, 6.9 billion euros will be used for debt servicing needs and 0.8 billion euros for arrears clearance.

ESM Managing Director Klaus Regling said: “Today’s decision by the ESM Board of Directors shows that Greece has completed the reforms required at this stage. The government and people of Greece deserve recognition for having come a long way in returning to fiscal sustainability and economic growth. The government should continue on this path to rebuild a competitive economy and regain investors’ trust.”

A further disbursement for arrears clearance of 0.8 billion euros may be made after 1 September 2017 subject to Greece making significant progress on arrears clearance, using its own resources to the arrears clearance effort as well as the funding from the disbursement approved today. It is subject to a further decision by the ESM Board of Directors.

After the disbursement approved today, ESM financial assistance for Greece will reach 39.4 billion euros, out of a total programme volume of up to 86 billion euros. Together the ESM and the EFSF have so far disbursed 181.2 billion euros to Greece (including the amount approved today), making the rescue funds the largest creditors to Greece by far./IBNA