Greece ready for next loan tranche

Greece has carried out all the reforms in the first package of measures agreed with eurozone creditors, which paves the way for Athens to get the next tranche of loans, the head of eurozone finance ministers Jeroen Dijsselbloem said at the weekend.

Greece ready for next loan tranche

Greece is getting very cheap loans from the eurozone bailout fund ESM under its third bailout agreement, in exchange for putting its public finances in order and reforming the economy to make it more efficient and competitive.

Eurozone deputy finance ministers (EWG) reviewed on Saturday the progress made by Athens in the reforms.

“On the basis of a final compliance notice... the EWG agreed that the Greek authorities have now completed the first set of milestones and the financial sector measures that are essential for a successful recapitalisation process,” Mr Dijsselbloem said.

“The agreement paves the way for the formal approval by the ESM board of directors, later today, of disbursing the €2bn sub-tranche linked to the first set of milestones,” he said.

He said that it will also allow the ESM to make case- by-case decisions to transfer money to Greece for the recapitalisation of the Greek banking sector.

The ESM already has €10bn earmarked for this purpose and the capital needs of Greek banks from the eurozone are estimated at between €6bn and €9bn, one eurozone official said on Friday.

Reuters

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