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ESM approves “in principle” €15bn bailout tranche to Greece

The European Stability Mechanism said that it has approved “in principle” the disbursement of the €15 billion to Greece. Ignoring the approval by 18 eurozone member state, Germany blocked the last bailout tranche at the Eurogroup on Thursday, expressing reservations about a fiscal hole of 28 million euros that will be created after the government decided to postpone Value Added Tax hikes on five islands hit by the migration crisis.

In its statement the ESM said it approved the disbursement “in principle” but it will wait for … Germany.

After the shock on Thursday evening, Greek Defense Minister, Panos Kammenos, announced on Friday morning that part of the 28 million euros could come from an overhaul in the country’s defense sector.

PS In principle we don’t need the money that our creditors with principles have approved in principle but they do not disburse following German principles. Another 15 billion tranche means a new loan burden for Greeks – even my cat knows that.

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3 comments

  1. Dear KTG, please tell your cat that its not a matter of now but the fact that debt service between 2019-2022 is 52 billion euros and that 15bn and some other monies would be used for cash buffer to protect Greece from coming to verge of default again it did before…hence tho Greece seems not needing the money now, unless the debt market iie issuance of long term bonds is available 2019 will be a very difficult year yet again…so in principle as you say you might not need the money but in fact you do… And please do not forget the fact that these loans are coming with a very favorable terms much much lower than market rates..so its is better to have it than avoid iit..

  2. Another big bandage to cover up the other 3 or 4 bandages. Another aspirin to relieve the so-called headache which, in truth, is a cancer of the brain caused by neoliberal economists (number monkeys). On “very favorable terms” is like saying you will be electrocuted with a nice low voltage.