European bailout fund approves €6.7bn loan for Greece

Europe's bailout fund has approved a €6.7bn loan instalment to Greece as part of its third international rescue programme.

The European Stability Mechanism said the approval came following the Greek government's completion of a series of required reforms.

The funds will be used to service the country's debt and clear domestic arrears.

#ESM Board of Directors approves €6.7 billion loan tranche to #Greece https://t.co/LwrfSvFtYd pic.twitter.com/pTxQD617At

— ESM (@ESM_Press) March 27, 2018

The ESM said an initial fund of €5.7bn is to be disbursed on Wednesday.

The remainder, to be used for clearing arrears, may be disbursed after May 1st if the country "makes progress in reducing its stock of arrears".

#ESM may disburse a further €1 billion for arrears clearance after 1 May 2018, dependent on progress in reducing #Greece’s stock of arrears and improving effectiveness of e-auction system

— ESM (@ESM_Press) March 27, 2018

Greece has depended on international rescue loans since 2010. Its third bailout ends this summer.

- Press Association and Digital Desk