Greece gets first payment from new bailout

Greece is receiving the first €13bn payment of its new bailout.

A total of €12bn has been earmarked for repaying debts, with the remainder going towards settling arrears to public sector suppliers.

Athens is using the funds to repay a €3.2bn debt instalment due to the European Central Bank – an amount it could not have afforded to repay without the bailout from 18 other European nations which share the euro currency with Greece.

It is Greece’s third bailout over five years.

The new three-year bailout is worth €86bn, and the disbursement of funds is dependent on the Greek government implementing a series of reforms, including steep tax hikes and spending cuts.

European bailout fund supervisors approved the release on Wednesday evening.