Eurogroup’s decision is a ‘supplemental MOU’

A supplemental MoU, which is due to be endorsed by the ESM Board shortly, will complement the framework for the programme implementation

The agreement reached during yesterday’s Eurogroup between Greece and its lenders provides a “supplemental MOU” according to a statement released on May 25 by European Commission following the Eurogroup meeting.

According to the European Commission, the supplemental memorandum is a prerequisite in order to complete the framework for the implementation of the agreed program.

It states that: “Subject to the full implementation of the outstanding prior actions and to the completion of national procedures, a disbursement of a first instalment will be made in June (EUR 7.5 bn). A supplemental Memorandum of Understanding, which is due to be endorsed by the ESM Board shortly, will complement the framework for the programme implementation.”

Regarding the participation of the IMF in the Greek program, the European Commission said that the IMF management confirmed its intention to recommend to the IMF Executive Board to approve a financial arrangement before the end of the year.