ESM to ratify Cyprus’ next tranche

ESM to ratify Cyprus’ next tranche

Nicosia, December 8, 2014/ Independent Balkan News Agency

By Kyriacos Kyriacou

The European Stability Mechanism (ESM) is expected to ratify the disbursement of the € 350 million sixth tranche of Cyprus` bailout programme, at today`s meeting of the Eurogroup in Brussels.

Cyprus’ Finance Minister Harris Georgiades is participating in the meeting.

According to CNA sources, the disbursement of the next tranche of € 350 million to Cyprus from the ESM will be ratified today, while additional € 86 million are expected to be disbursed by the IMF. As Finance Minister has stated, receiving the tranche is important in view of the big payments of salaries by the end of the year.

Today`s Eurogroup meeting is also considered crucial for Greece, since EU finance ministers are expected to decide an extension of the country`s program with the Troika.

According to press reports the Eurogroup is expected to decide an extension of Greece`s program by six months. Athens is talking about a few weeks only, which is considered an extension of a technical nature.

The bailout extension is considered necessary by the country’s lenders in order to secure the proclaimed preventive credit line after the bailout ends and return to market financing.