The Eurogroup gave the green light on Monday for the disbursement of the fourth tranche of the European Stability Mechanism (ESM) program for Greece, totaling 6.7 billion euros, following a meeting of the Eurozone’s finance ministers in Brussels.
The Eurogroup said the funding will be paid out in two tranches, the first of which (5.7 bln euros) will be disbursed on February to cover Greece’s debt servicing needs, clear State arrears and support the build-up of the country’s liquidity buffer.
“Following the full implementation of the prior actions and subject to the completion of national procedures, the ESM governing bodies are expected to endorse the supplemental MoU and approve the disbursement of the fourth tranche of the ESM program,” it said in a press release.
“The fourth tranche under the ESM program amounting to 6.7 billion euros will be disbursed to Greece in two disbursements, starting with a first disbursement in February of 5.7 billion euros to cover debt servicing needs, to allow the further clearance of arrears and to support the build-up of the cash buffer of the Greek State, in order to support Greece’s return to the market.
The subsequent disbursement for arrears clearance may be approved by the EWG in Spring, subject to a positive reporting by the European Institutions on the clearance of net arrears using also own resources and a confirmation from the European institutions that the unimpeded flow of e-auctions has continued,” the statement added.
One after the other the EU and Eurozone top hailed Greece for its achievements.
New Eurogroup chief Mario Centento
On #Greece we have some good news. We have achieved a political agreement on the third review of the ESM programme and on the size of the next tranche of 6.7 billion euros
— Mário Centeno (@mariofcenteno) January 22, 2018
Warm congrats to #Greece on the good work done. Expect a growing confidence in the Greek economy. Greece is on a good path to finalise all the measures as regards the 3rd review, we can focus now on final stages of the #ESM programme #Eurogroup pic.twitter.com/laBx4aUp2l
— Valdis Dombrovskis (@VDombrovskis) January 22, 2018
However, the eurozone top refused to elaborate on whether Greece will need a post-bailout arrangement. They said more or less that it is up to Greece to decide.
Nevertheless it was the first Eurogroup meeting without duo-horribilis Dijsselbloem and Schaeuble. that’s why the ‘political decision’ to conclude the third review run so smoothly. Or Exactly because…
No doubt a condition of the next round will be auctioning the homes of Greeks who owe 100 euros and over to the now mostly foreign-owned utility companies. They can also have fun AND speed the process up by raising utility prices.
Lots of money & prizes in this Greek “comedy”.