The Board of Directors of the European Stability Mechanism (ESM) announced the disbursement of the 800 euro sub-tranche to Greece. The money will be used for to cover the Greek government’s outstanding debt to the private sector.
This is the remainder of the third tranche of the ESM financial assistance approved on 7 July 2017. This amount will now be disbursed to a special account for the settlement of arrears.
With today’s disbursement, ESM’s financial assistance to Greece amounts to € 40.2 billion, with the total amount reaching up to € 86 billion. The ESM and the European Financial Support Fund (EFSF) have so far disbursed EUR 182 billion to Greece (including the amount approved today), making the rescue programme to Greece the largest ever. The current ESM program for Greece is scheduled to expire in August 2018.
The ESM Communication is as follows:
The Board of Directors of the European Stability Mechanism (ESM) today authorised the release of €0.8 billion to Greece for the clearance of arrears. This is the remaining amount of the third tranche of ESM financial assistance, approved on 7 July 2017. It will be disbursed to a dedicated account for clearing arrears.
The release of funds was subject to a positive assessment by the European institutions of the clearance of net arrears by the Greek government, as defined in the Technical Memorandum of Understanding of 5 July 2017.
“I am satisfied to note the Greek government’s continued commitment to clear arrears. The amount of arrears reduced in recent months means that Greece has overperformed the target set in the programme, and this should have a positive impact on the country’s economy. I hope our good cooperation with the Greek government continues, so that the third review of the ESM programme can be completed in a timely manner,” said ESM Managing Director Klaus Regling.
After the disbursement approved today, ESM financial assistance for Greece will reach €40.2 billion, out of a total programme volume of up to €86 billion. The ESM and EFSF together have so far disbursed €182 billion to Greece (including the amount approved today), making the rescue funds by far the largest creditor of Greece. The current ESM programme for Greece is scheduled to end in August 2018.