Eurogroup approves 6.7 billion euros for Greece

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Euro Greece

The Eurogroup approved 6.7 billions euros for Greece following a meeting of the Eurozone’s finance ministers in Brussels on Monday.

According to a compliance report, Greek authorities have over-achieved the fiscal targets set over the last three years (2015-2017), have continued to strengthen tax collection through the Independent Authority of Public Revenue and enhanced the fairness and effectiveness of the social welfare system.

It found that the business environment has been improved by further actions aimed at opening up regulated professions, improving the investment licensing system, lifting regulations that unnecessarily restrict competition in product markets as well as the opening-up the energy markets.

The funds are the fourth tranche of the European Stability Mechanism (ESM) program for Greece and will be dispersed 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,” it added.

GCT Team

This article was researched and written by a GCT team member.